Economy June 4, 2026 12:30 PM

White House to Deploy Defense Production Act for Nearly $700 Million in Coal Aid

Administration plans to redirect Cold War-era emergency authority toward plant upgrades, two new units and a West Coast export terminal

By Jordan Park

President Donald Trump plans to invoke the Defense Production Act to allocate nearly $700 million to the U.S. coal sector, officials say. The funds are intended for upgrades at more than a dozen coal-fired power plants, financing for two new coal plants and support for construction of a West Coast coal export terminal. The administration frames the move as national security policy aimed at ensuring electrical supply for AI data centers and reducing dependence on other countries.

White House to Deploy Defense Production Act for Nearly $700 Million in Coal Aid

Key Points

  • President Trump will use the Defense Production Act to direct nearly $700 million to the coal industry, per a White House official and an industry source.
  • Funds are earmarked for upgrades at more than a dozen coal-fired power plants, financing of two new coal plants, and support for building a West Coast coal export terminal.
  • The administration frames the effort as a national security measure to ensure electricity for AI data centers and to reduce dependence on other countries, and will make an announcement at 3 p.m. ET on "Beautiful, Clean Coal."

President Donald Trump intends to announce today that he will tap Cold War-era emergency powers to steer almost $700 million to the American coal industry, according to a White House official and an industry source.

The administration plans to invoke the Defense Production Act - a 1950 statute that gives presidents expansive authority over industries deemed critical to national security - to allocate the funds. The package is structured to finance a range of coal-related projects, including upgrades at more than a dozen coal-fired power plants, financial backing for two new coal plants and assistance for construction of a coal export terminal on the U.S. West Coast.

Officials say the measures are intended to support the coal sector's ability to ship fuel to markets in Asia while also enabling U.S. power companies to burn coal domestically. The move is being presented by the administration as tied to national security objectives.

The White House public schedule lists a 3 p.m. ET announcement on a topic described as "Beautiful, Clean Coal."

Senior administration messaging has framed broader energy policy as a national security matter. The stated goals include ensuring reliable electricity supply for artificial intelligence data centers and reducing reliance on energy sources from other countries.


Summary of the proposal:

  • Use of the Defense Production Act to allocate nearly $700 million to coal-related projects.
  • Funds targeted at plant upgrades at more than a dozen coal-fired facilities.
  • Financial support planned for two new coal plants and a West Coast export terminal to facilitate shipments to Asia.
  • Administration frames the initiative as advancing national security by protecting electricity supply for AI data centers and lowering foreign energy dependence.

Attribution for the reporting is to a White House official and an industry source who provided details about the planned announcement and the intended uses for the funds.

Risks

  • The article does not specify whether the planned funds will definitively achieve the stated goals of increasing shipments to Asia and enabling domestic burning of coal - the outcome is therefore uncertain.
  • Using Cold War-era emergency powers to redirect funds raises potential procedural or political uncertainty about the scope and reception of the action, as the article notes the use of the Defense Production Act but does not detail approvals or legal processes.

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