Trump invokes Cold War law to direct $700m toward coal revival

President Trump announced $700 million in federal funding for the coal industry on Thursday, invoking a Cold War-era law to prop up existing plants and build the first new coal-fired power stations in the United States since 2013. The funding includes $425 million to upgrade and extend the life of 13 coal plants across 10 states, $185 million to construct new plants in Alaska and West Virginia and restart a shuttered facility in Maryland, and $75 million for a coal export terminal in Oakland, California. The president used the Defense Production Act, a Korean War-era statute, to distribute the grants, framing the initiative as an effort to lower energy costs and create jobs for miners, railroad workers and construction workers. The announcement represents the latest in a series of extraordinary efforts by the Trump administration to revive a declining industry. Coal production in the United States has fallen to less than half of what it was in 2008, while roughly 330 coal plants have retired since 2010 and 60 more have announced plans to close by 2031. Employment in the sector has dwindled from about 173,000 workers in 1985 to roughly 40,000 today. Despite the administration's framing of "beautiful, clean coal," environmental groups and experts strongly criticized the move, calling it a giveaway to industry interests that will drive up electricity costs and worsen air pollution. The Natural Resources Defense Council and Sierra Club condemned the funding, noting that coal is the most carbon-intensive fossil fuel and has been linked to respiratory and heart health problems. The new coal plants in Alaska and West Virginia, if completed, would mark a reversal of a decade-long trend away from the fuel source. The projects face significant uncertainty, as analysts noted they could be vulnerable if a future administration changes course. The funding for these plants comes from money originally designated for carbon capture technology, which environmental groups said represents a misuse of congressional intent. The coal industry, however, has argued that increased coal generation can help meet surging electricity demand from data centers powered by artificial intelligence, and protect consumers from volatile energy prices.