WASHINGTON, D.C. — The U.S. Department of Energy plans to provide up to $500 million in Defense Production Act funding to support 13 coal-related projects, including upgrades at existing coal-fired power plants and construction of a major export terminal in California, marking one of the Trump administration’s largest financial commitments to the domestic coal sector.
The funding package includes up to $425 million for 12 projects intended to maintain or expand coal-fired generation capacity and up to $75 million for the West Gateway Terminal Project in Oakland, according to the Energy Department.
The initiative underscores the administration’s effort to preserve coal’s role in the U.S. power grid as rising electricity demand from data centers, manufacturing and artificial intelligence applications increases pressure on generation resources.
Federal officials framed the investment as a national security measure, citing the Defense Production Act authority used to support the projects. The law allows the federal government to direct funding toward industries deemed critical to national defense and economic resilience.
Energy Secretary Chris Wright argued the funding would strengthen domestic energy supply chains while addressing export bottlenecks on the West Coast.
“For too long, limited West Coast export capacity has constrained America’s ability to move coal and other energy resources to global markets,” Wright stated.
A significant portion of the package is directed toward export infrastructure. The proposed West Gateway Terminal would be a rail-served marine facility capable of handling more than 10 million tons of bulk commodities annually.
The Energy Department indicated the terminal would expand export access to markets across the Indo-Pacific region, including Japan, South Korea, Taiwan, Vietnam and Malaysia.
Under Secretary of Energy Kyle Haustveit described the project as a means of increasing access to overseas markets for U.S. coal producers while strengthening supply-chain resilience and energy trade relationships with allied nations.
The administration has increasingly emphasized coal as part of its broader energy strategy, despite years of declining domestic consumption driven by competition from natural gas and renewable energy sources.
The Energy Department stated the selected projects are intended to support coal mining supply chains, maintain dispatchable baseload power generation and improve the resilience of energy infrastructure. Specific coal plant recipients were not identified in the announcement.
The funding will be distributed through the Defense Production Act Title III program, which is designed to expand industrial capacity in sectors considered strategically important to the United States.
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