Trump announces $700m coal investment using wartime powers

US President Donald Trump has announced a $700 million federal investment package aimed at boosting the American coal industry, invoking wartime-era emergency powers to support coal-fired power plants, mining operations and export infrastructure. The announcement marks one of the largest federal interventions in the coal sector in recent years.

Speaking at the White House on Thursday, Trump said the funding would help preserve existing coal facilities, support mining jobs and strengthen domestic energy security amid growing electricity demand. The administration is using the Defense Production Act, a Cold War-era law that allows presidents to direct resources toward industries deemed critical to national interests.

According to the administration, the investment will help protect 14 coal-fired power plants and 42 coal mines while supporting the construction of two new coal plants and a major coal export terminal. Officials argue that rising energy consumption from artificial intelligence data centres, manufacturing and other sectors requires reliable sources of power that can operate around the clock.

The funding package includes hundreds of millions of dollars for upgrades to existing coal facilities, support for new coal projects in states such as Alaska and West Virginia, and investment in export infrastructure designed to increase overseas shipments of American coal.

Trump described coal as a vital component of the nation’s energy strategy, referring to it as “clean, beautiful coal” and arguing that the investment would help lower energy costs and protect jobs in coal-producing regions.

However, environmental groups strongly criticised the move, saying it directs taxpayer money toward one of the most polluting fossil fuels at a time when many countries are investing in cleaner energy sources. Critics argue that coal’s share of US electricity generation has fallen sharply over the past decade as natural gas, solar and wind power have become more competitive.

Industry supporters welcomed the announcement, saying the funding could help maintain grid reliability and support communities that depend on coal mining and power generation. They also argue that growing electricity demand will require a diverse energy mix that includes fossil fuels alongside renewable sources.

The announcement highlights the Trump administration’s broader effort to revive the US coal industry despite its long-term decline. Whether the investment succeeds in reversing that trend is likely to remain a subject of debate among policymakers, industry leaders and environmental advocates in the months ahead

Source BBC NEWS