&imwidth=800&imheight=600&format=webp&quality=medium "Wion Decodes: Trump announces $700 mn support for coal projects; why the US president is pushing the most polluting fossil fuel")
US President Donald Trump has announced $700 million in support for coal-related projects, marking a renewed push to expand reliance on one of the most polluting fossil fuels. The move has triggered renewed debate over why the US is turning further towards coal despite global climate concerns.
Trump doubles down on coal push
The funding will be deployed to keep more than a dozen coal plants running across ten US states and support 42 coal mines. The plan also includes building two new coal plants and developing a coal export terminal.
The initiative will be executed using the Defence Production Act, a Cold War-era law passed in 1950 that allows the US president emergency authority over domestic industries.
"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 said.
The announcement comes as Trump continues to roll back environmental regulations and dismisses human-induced climate change as "a hoax". Coal remains the most carbon-intensive fossil fuel and a major contributor to global greenhouse gas emissions.
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Why the US is pushing coal again
The administration has justified the move by pointing to rising electricity demand driven by artificial intelligence, data centre expansion and electric vehicles. Officials argue that renewable energy sources such as wind and solar cannot provide consistent, round-the-clock baseload power required for growing digital infrastructure.
Energy Secretary Chris Wright and Interior Secretary Doug Burgum have said that maintaining coal plants is necessary to prevent future power shortages and ensure grid reliability. The Department of Energy has already issued emergency orders to keep ageing coal units operational despite planned retirements.
The White House has also warned that electricity demand is rising faster than grid expansion, raising the risk of blackouts by 2030 if dependable power sources are reduced.
National security angle
The administration has further framed coal expansion as a national security issue. By invoking the Defence Production Act, officials argue that the United States must reduce dependence on foreign supply chains, particularly those linked to China in the renewable energy sector.
The policy is being positioned as part of a broader strategy to strengthen domestic energy independence and secure critical infrastructure for emerging technologies.
Trump has previously withdrawn the United States from the Paris Climate Agreement twice. The first exit was announced in 2017, while the second followed an executive order after his return to office in 2025.
