US President Donald Trump on 5 June 2025 unveiled a sweeping federal package to revive and expand America's coal industry, pledging $700 million in investment to protect existing operations, build new capacity, and slash electricity costs. Speaking at the White House, Trump framed the initiative as a defining step toward lowering energy prices and reinforcing the national power grid.

What the Package Covers

'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,' Trump told reporters. The $700 million federal investment is designed to protect 14 coal plants and 42 coal mines, while also funding the construction of two new coal plants and one large export terminal. According to Trump, the measures will support more than 14,000 jobs and save American consumers an estimated $50 billion in electricity costs.

Defense Production Act Invoked

In a significant use of emergency authority, Trump announced the invocation of the Defense Production Act to keep 13 coal-fired power stations operational across West Virginia, Kentucky, North Carolina, Indiana, Tennessee, Arizona, Arkansas, Oklahoma, North Dakota, and Wisconsin. The administration said the move would allow these facilities to invest in upgrades and extend their operational lives 'for decades into the future,' reinforcing grid reliability.

Export Push: West Gateway Project

Trump also highlighted an ambitious export initiative. 'Starting this summer, the West Gateway project will break ground and by summer 2028, over 12 million tons of coal per year will be shipped to countries all around the world,' he said. The terminal is positioned as a cornerstone of America's energy export strategy, targeting global demand that the administration argues remains robust.

What Cabinet Officials Said

Interior Secretary Doug Burgum said the administration had dramatically accelerated approvals for coal development, noting that the Trump administration had approved 76 permits and leases — contrasting this with what he described as 'zero coal leases held in four years under the Biden administration.' Burgum credited Trump's early declaration of an energy emergency for cutting bureaucratic delays. Energy Secretary Chris Wright called coal indispensable to modern industry, saying: 'Without clean, beautiful coal a modern world is impossible. It's been the largest source of global electricity for 125 years in a row, and will be for decades to come.'

Broader Strategic Context

Trump linked the coal push to wider priorities including manufacturing competitiveness and the energy demands of artificial intelligence infrastructure. The administration argues that reliable, affordable electricity is critical to sustaining America's economic edge in an era of rising industrial power consumption. This comes amid an ongoing policy reversal of Biden-era clean energy regulations, with the Trump White House consistently prioritising fossil fuel expansion since taking office. Critics of coal expansion, however, argue that the sector faces structural decline driven by cheaper natural gas and renewables — and that federal subsidies risk locking in stranded assets. The administration has not addressed those concerns directly in this announcement.