en.Wedoany.com Reported - The U.S. government plans to invest approximately $700 million in federal funds to support coal infrastructure. This funding covers upgrades to existing power plants, construction of new plants, and development of coal export terminals. The White House is expected to announce the plan on Thursday alongside lawmakers and governors from coal-producing states, marking one of the most direct federal financial commitments to coal in recent years.
Under the plan, $425 million will be allocated under the Defense Production Act to 13 existing coal-fired power plants across 10 states: West Virginia, Kentucky, North Carolina, Indiana, Tennessee, Arkansas, Arizona, Oklahoma, North Dakota, and Wisconsin. White House officials stated that the funds could support operational upgrades, though full project-level details have not yet been released.
The Energy Department will provide $185 million in grants to help build two new plants—one by Terra Energy Center Corp. in Alaska and another by TerraPurus Inc. in West Virginia—and to restart the AES Warrior Run power station near Cumberland, Maryland. An additional $75 million is specifically allocated for the proposed coal export terminal in Oakland, California, known as the Oakland Bulk and Oversized Terminal. If completed, the terminal is expected to export up to 12 million tons of coal annually, sourced from Wyoming, Montana, and other western states.
The government cites the Defense Production Act as the legal basis for the plan. The law, dating back to 1950, was originally used to accelerate steel production during the Korean War and has since been employed by various administrations to support mask manufacturing, solar energy deployment, and address baby formula shortages. The Trump administration has used the law more frequently than its predecessors to advance domestic energy priorities, having previously invoked it to restart offshore oil production near the California coast. Officials link the move to grid reliability and artificial intelligence energy demands, with Interior Secretary Doug Burgum stating that winning the AI race is a national security need and that coal-fired power is critical to meeting the surging electricity demand from data centers.
Benefiting utility companies include Duke Energy, Hallador Energy, Oklahoma Gas & Electric, and at least one subsidiary of American Electric Power. The two new plant projects require matching funds from developers Terra Energy Center Corp. and TerraPurus Inc., with total planned expenditures for both projects reaching $386 million.
Environmental groups have strongly opposed the plan, arguing that directing federal funds to coal will prolong reliance on fossil fuels at a time when zero-emission alternatives have become more cost-competitive. Critics note that renewable energy and natural gas are already cheaper than coal for electricity generation, making such subsidies economically and environmentally misguided. The Oakland export terminal project also faces long-standing opposition, with conservationists concerned that coal dust from open railcars supplying the terminal could harm surrounding communities.
Coal once supplied more than half of U.S. electricity, but by 2024, that share had fallen to about 17%. The shift by utilities toward cheaper natural gas and renewable energy has been primarily market-driven. Beyond financial support, the Energy Department has issued emergency orders requiring some coal-fired plants to continue operating past their planned closure dates, and the Interior Department has taken steps to expand federal land available for coal leasing. Defense Secretary Pete Hegseth has also been directed to sign agreements to purchase electricity from coal-fired plants to support military operations.
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