The U.S. is stepping up its investment in coal as President Trump doubles down on his commitment to bolster the fossil fuel industry.

During an event on Thursday, Mr. Trump announced that his administration would commit $700 million in funding for coal plants and a new export terminal.

"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," Mr. Trump said from the Oval Office, where he announced the new funding initiative.

"If you look at China, if you look at so many of the successful countries, they're using coal," he added. "If you look at some of the real great failures, countries, they're using wind."

The new investment in the coal industry was first reported by Bloomberg.

Mr. Trump will invoke the Defense Production Act, a Cold War-era law that gives the U.S. president emergency authority over domestic industries, to distribute $75 million for a new coal export terminal in Oakland, California, and $425 million to support 13 existing plants across 10 states: West Virginia, Kentucky, North Carolina, Indiana, Tennessee, Arkansas, Arizona, Oklahoma, North Dakota and Wisconsin.

"Our action will allow these facilities to invest in upgrades that will extend their operational lives for decades into the future, reinforce the reliability of our electric grid, which is really the biggest beneficiary, and most importantly, keep electricity prices very low for the American people," Mr. Trump said.

The Trump administration will also distribute $200 million in Department of Energy grants to build two new coal plants in Alaska and West Virginia and to restart a coal plant in Maryland. The facilities in Alaska and West Virginia will be the first new coal plants built in the U.S. since 2013.

A White House official told CBS News the initiative will create thousands of jobs for miners, railroad workers, engineers and construction workers and save consumers $50 billion in energy generation costs.

Trump was joined Thursday by Interior Secretary Doug Burgum, Energy Secretary Chris Wright and Environmental Protection Agency Administrator Lee Zeldin.

Fossil fuel focus
Mr. Trump has long championed the benefits of exploiting U.S. fossil fuel resources. Since returning as president for a second time in 2025, he has moved to expedite oil and mining projects and open new drilling sites. On Thursday, Mr. Trump said his administration has approved 76 new permits for "clean, beautiful coal" since he took office last year.

The Trump administration has also directed fossil-fueled power plants in Michigan, Indiana, Colorado and Washington state to continue operating past their retirement dates in order to meet rising electricity demand, all while scaling back investment in renewable energy.

That comes as other countries ramp up their use of clean energy. In the first half of 2025, global solar generation grew by a record 31% while wind generation grew by 7.7%, according to a report by the energy think tank Ember, which analyzed data from 88 countries. At the same time, fossil fuel generation dipped, although only by less than 1%.

Environmental groups criticized Mr. Trump's coal plan ahead of its official release, noting it could drive up pollution, raise electricity costs for Americans and prop up a declining industry. Coal provided 15% of energy production in 2024, down from 45% in 2010. Natural gas provides about 43% of U.S. electricity, with the rest rounded out by nuclear energy and renewables.

"It is disgusting and reprehensible that the President of the United States is giving away our taxpayer dollars to deadly and expensive coal plants that will make Americans sicker and drive up electricity prices even more," the Sierra Club, an environmental group, said in a statement.

Kit Kennedy, managing director for power at the nonprofit Natural Resources Defense Council, also criticized the new initiative.

"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," he said.

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