US President Donald Trump has unveiled a major $700 million investment package aimed at revitalising the American coal industry, positioning the move as part of a broader strategy to strengthen domestic energy security and shield consumers from rising energy costs.
The announcement comes amid growing concerns over global energy market disruptions following the conflict involving Iran and the continued uncertainty surrounding critical energy supply routes.
Speaking at the White House on Thursday, US President Donald Trump described the initiative as a historic step toward reducing energy prices and supporting American industries.
"So today we're taking historic action to bring down the price of energy and the cost of living for all Americans with the power of clean, beautiful coal," Trump said.
The funding package will be implemented through the Defense Production Act (DPA), a Cold War-era law that grants the US President authority to direct resources toward industries deemed essential to national security.
The centrepiece of the initiative is the use of the Defense Production Act, a powerful federal mechanism that has historically been employed during national emergencies and periods of strategic importance.
The Defense Production Act allows the federal government to prioritise investments and allocate resources to industries considered critical for national interests. Previous administrations have used the law to support defense manufacturing, healthcare supply chains, semiconductor production, and energy-related projects.
Trump's decision to use the Act for coal infrastructure reflects his administration's view that domestic energy production is a key element of economic and national security.
Announcing the programme, Trump stated:
"As a result of the $700m investment that I'm announcing today, we will protect 14 coal plants and 42 coalmines, a tremendous number, and build two new coal plants and one massive new export terminal."
The investment package is divided into two major components.
A significant portion of the funding will be directed toward preserving existing coal-related assets.
The administration plans to allocate $500 million in federal funding to protect 14 existing coal-fired power plants and 42 coal mines across multiple states.
The coal plants identified under the programme are located in:
Kentucky
North Carolina
Indiana
Tennessee
Arkansas
Arizona
Oklahoma
North Dakota
Wisconsin
West Virginia
In addition to preserving existing facilities, part of the funding will support the development of a new coal export terminal in California.
The second phase of the initiative focuses on expanding coal generation capacity.
The US Department of Energy will provide an additional $200 million to support the construction of new coal-fired power plants in Alaska and West Virginia.
These projects are notable because they represent the first new coal plants to be built in the United States since 2013, highlighting a significant policy shift toward reviving domestic coal generation.
Trump also announced plans to construct a major coal export terminal in Oakland, California.
According to the administration, the terminal is expected to strengthen US coal exports and improve access to international energy markets.
The administration argues that the investment package will create thousands of jobs and stimulate economic activity in coal-producing regions.
Trump stated that the Oakland export terminal alone would create more than 1,400 jobs.
According to administration estimates, the broader package could support approximately 14,000 jobs through construction activities, mining operations, transportation services, and related supply chains.
Many of the targeted regions have historically relied on coal production as a major source of employment and economic development.
The coal investment announcement comes against the backdrop of rising global energy prices.
Trump said the initiative is partly intended to help protect Americans from increasing energy costs linked to the conflict involving Iran.
The situation has been further complicated by disruptions affecting the Strait of Hormuz, one of the world's most strategically important energy transit routes.
The Strait of Hormuz handles approximately one-fifth of global oil and natural gas supplies. Any disruption in the waterway can significantly affect global energy prices and supply chains.
As geopolitical tensions have increased, fuel and electricity costs have also risen.
According to the AAA motoring group, the average price of a gallon of petrol in the United States stood at $4.24 on Thursday.
This marks a substantial increase from $2.98 per gallon recorded on the day the United States and Israel began military operations involving Iran.
Data from the Bureau of Labor Statistics (BLS) showed that overall consumer energy prices increased by 17.9% in the year leading up to April.
The rise has added pressure on household budgets and increased concerns about inflationary effects on the broader economy.
The President argued that coal remains a vital component of a reliable energy system.
During his remarks, Trump contended that successful economies continue to rely on coal and other traditional energy sources to maintain stable and affordable power supplies.
He criticised what he described as "failure countries" for heavily depending on renewable energy technologies such as wind power.
The administration maintains that coal can provide consistent baseload electricity generation, particularly during periods of high demand or supply disruptions affecting other energy sources.
Trump claimed that the coal investment programme would help save American consumers $50 billion in future energy generation costs.
According to the administration, these savings could prevent higher electricity bills that might otherwise result from increased infrastructure and generation expenses.
The announcement is likely to intensify ongoing debates over the future direction of US energy policy.
Supporters argue that strengthening domestic coal production enhances energy independence, supports manufacturing competitiveness, and provides reliable power generation.
Critics, however, contend that long-term energy investments should focus more heavily on renewable energy technologies and lower-carbon alternatives.
The discussion reflects a broader global challenge as countries seek to balance energy affordability, economic growth, energy security, and environmental sustainability.
President Donald Trump's $700 million coal investment initiative represents one of the most significant federal efforts in recent years to revive the US coal industry. By invoking the Defense Production Act, the administration aims to protect 14 coal plants, support 42 coal mines, build two new coal-fired power plants, and develop a major export terminal.
The move comes at a time of heightened energy market uncertainty, rising fuel prices, and growing concerns about energy security following geopolitical tensions in the Middle East. While supporters view the initiative as a practical response to rising energy costs and supply risks, it is also expected to fuel debate over the role of coal in America's long-term energy strategy.
As global energy markets continue to evolve, the success of this investment programme will likely be closely watched by policymakers, industry leaders, and energy consumers alike.