In a major push to revive the struggling U.S. coal industry, President Donald Trump signed an executive order Wednesday directing the Department of Defense to prioritize long-term electricity purchase agreements with coal-fired power plants and announcing $175 million in federal funding to modernize aging coal infrastructure across several states.
Trump unveiled the measure at a White House event with coal industry executives, miners and political allies, framing it as a national security initiative that would strengthen grid reliability and support American energy jobs. The executive order instructs the Defense Department to enter into long-term power purchase agreements with coal generators to supply military installations and other mission-critical facilities. The White House said prioritizing coal for baseload power would reduce vulnerability to intermittent energy sources like wind and solar.
Alongside the Pentagon directive, the Department of Energy announced $175 million in targeted funding to upgrade and extend the useful life of six coal-fired power plants in Kentucky, North Carolina, Ohio, Virginia and West Virginia. The upgrades aim to improve efficiency and ensure reliable electricity supply, particularly in rural and Appalachian communities where coal has historically been a major employer.
At the ceremony, Trump flanked by industry representatives and workers praised coal as essential to both economic stability and national defense, calling it “beautiful, clean coal” and arguing that it would help meet rising electricity demand from high-power industries such as data centers. He reiterated long-standing criticism of renewables, asserting that coal delivers uninterrupted baseload electricity necessary for military readiness and grid resilience.
The move builds on a series of Trump administration policies aimed at bolstering fossil fuels and rolling back climate-related regulations. This includes repealing or weakening environmental restrictions on coal plants and using emergency authorities to keep older facilities operational. Critics contend these actions could harm public health and undermine broader climate goals.
Energy industry groups welcomed the announcement. Shares of major coal producers, including Peabody Energy, rose after the news, with company executives signaling potential collaboration on future coal plant investments. They argue enhanced demand from the Pentagon could provide stability for plants facing economic pressure from cheaper natural gas and renewable alternatives.
Environmental and clean-energy advocates blasted the policy, saying it prioritizes an outdated, heavily polluting fuel over cleaner energy options. They warn the long-term costs to public health and the environment could outweigh any short-term economic benefits, and argue that federal funds would be better spent supporting modern infrastructure and renewable energy jobs.
The administration’s focus on coal comes amid broader debate over the future of U.S. energy policy, including efforts to balance climate commitments with economic concerns in regions affected by the decline of traditional energy industries. With hundreds of coal plants having closed over the past two decades due to competition from natural gas and renewables, experts say sustaining the remaining facilities may require more than federal directives alone.
Legislators from coal-producing states largely welcomed the executive order, framing it as a win for workers in areas hard hit by plant closures and job losses. They argue that extending the life of existing plants with federal support can provide a bridge while communities transition to new economic opportunities. The funding announced Wednesday represents one piece of a broader investment strategy aimed at reinvigorating America’s energy infrastructure.