Trump Deploys Wartime Powers for $700 Million Coal Revival

President Donald Trump has unveiled a $700 million initiative aimed at revitalizing the American coal sector, leveraging the Defense Production Act—a Cold War-era statute that empowers the executive branch to bolster industries deemed critical to national security. Speaking at the White House on Thursday, Trump framed the move as a decisive step to lower energy bills and reduce the cost of living. "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," he declared.

The announcement arrives amid heightened energy costs following the ongoing conflict with Iran. To fund this effort, Trump invoked the Defense Production Act, citing the need to shield citizens from financial strain. "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," Trump stated.

The financial breakdown details $500 million (£372 million) in federal funding dedicated to preserving 14 existing coal facilities and establishing a new export hub in California. Additionally, the Department of Energy will allocate $200 million toward constructing two new coal-fired power plants in Alaska and West Virginia. These projects mark the first new coal plant constructions in the United States since 2013.

Trump highlighted the economic benefits of the plan, noting that the Oakland, California export terminal alone is expected to generate over 1,400 jobs, while the broader initiative supports approximately 14,000 positions. The protected coal facilities are located across ten states: Kentucky, North Carolina, Indiana, Tennessee, Arkansas, Arizona, Oklahoma, North Dakota, Wisconsin, and West Virginia.

During the address, the president contrasted his strategy with nations he labeled "failure countries" for prioritizing renewable energy sources like wind power, arguing that prosperous nations rely on coal. He projected that the investment would save American consumers $50 billion in energy generation costs, preventing these expenses from being passed on through higher utility bills.

Energy prices have surged recently, partly due to the closure of the Strait of Hormuz, a vital shipping lane responsible for transporting roughly 20% of the world’s oil and gas supplies. This disruption, coupled with the war with Iran, has significantly impacted consumer costs. According to the AAA motoring group, the average price for a gallon of petrol reached $4.24 on Thursday, a sharp increase from $2.98 on the day the US and Israel commenced strikes on Iran. Furthermore, data from the Bureau of Labor Statistics indicates that overall consumer energy prices climbed by 17.9% over the year leading up to April.

Source: BBC News Generated at: 2026-06-05 00:03:36 UTC