Donald Trump to give $700mn of taxpayer money to boost 'beautiful' coal on eve of World Environment Day

U.S. President Donald Trump is set to announce nearly $700 million in new federal support to bolster coal-fired power and coal exports. After Bloomberg first reported the development, the White House confirmed it and is expected to come on Thursday. Coal production has been declining in the country for nearly 20 years, but now the Trump administration is trying to revive the electricity source. He will use Cold War-era wartime authority under the Defense Prevention Act to dole out support for the waning coal industry. He will reportedly give $425 million to 13 existing coal plants, $75 million for an export terminal in California, and $185 million in grant funding to build two new coal plants in Alaska and West Virginia and restart a plant in Maryland.

It comes a day before World Environment Day on June 5. Coal is a major contributor to pollution, and global efforts are underway to reduce dependency on it as a fuel. However, the Trump administration is a supporter and argues that it is an important source of reliable power. Trump even calls it “clean” and “beautiful.” In fact, he has made reviving and protecting the American coal industry a central pillar of his "energy dominance" agenda in his second term. He claims that it provides a reliable "baseload" power that the electric grid desperately needs and is crucial to protect national security.

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Trump's push to promote coal production

Under Trump, the US Energy Department has issued emergency orders pushing coal plants to continue producing power beyond planned closing dates. More federal land for coal leasing has been opened in North Dakota, Montana and Wyoming. The President has directed Defence Secretary Pete Hegseth to enter into agreements to purchase electricity from coal plants for military operations. Environmentalists have slammed Trump's moves, saying the government is using taxpayer money to keep the country reliant on fossil fuels that are known to drive climate change.

“Propping up coal billionaires with taxpayer money is one more way for the Trump administration to put polluters first and put the rest of us at risk. The best thing for the air, the climate and our utility bills is to let these plants retire peacefully," Kit Kennedy, managing director for power at the Natural Resources Defence Council, told Financial Post. The announcement is expected to come at 3 pm on Thursday.