President Trump is betting $700 million of federal money that coal’s obituary was written too soon. The investment package, announced on June 4, leans on the Defense Production Act to channel funds into an industry that most energy analysts had already moved to the “legacy” column of their spreadsheets.
The DPA, originally designed for wartime mobilization, gives the executive branch the ability to direct industrial production without waiting for Congress to write checks. Trump is using emergency powers to bypass the normal budget process and pour money directly into coal infrastructure.
Where the money goes
Roughly $425 million of the total package will flow through the DPA to support 13 existing coal plants spread across states including West Virginia, Kentucky, North Carolina, Tennessee, Arizona, Arkansas, Oklahoma, North Dakota, and Wisconsin.
The plan also funds two entirely new coal plants, one in Alaska and one in West Virginia. If built, they would be the first new coal-fired power plants constructed in the US since 2013.
