Federal funds totaling $700 million will support coal plants and infrastructure, citing national security under a Korean War-era law.
The Trump administration will direct $700 million in federal funds to the U.S. coal industry, using the Defense Production Act to sustain existing plants and fund new projects. A $425 million portion will go to 13 coal plants across 10 states, while $75 million supports infrastructure, including a long-blocked California export terminal.
The move revives a sector facing declining demand and regulatory pressure, contrasting with prior federal climate initiatives. The Defense Production Act, typically reserved for national security priorities, has not previously been used to subsidize energy production at this scale.
Markets have yet to react, but the allocation could signal policy shifts for energy commodities and utilities.