President Trump on Thursday said he will invoke Cold War-era emergency powers to direct a nearly $700 million investment into the waning coal industry, including construction of a new West Coast coal export terminal in Oakland.
Speaking from the White House, Trump said he will use the Defense Production Act, a 1950 law that grants the president emergency authority over domestic industries deemed critical to national security, to construct a new export terminal on the West Coast for the first time to move supplies overseas. He also announced the upgrading of 13 existing coal plants across the country, the construction of two new coal plants in Alaska and West Virginia, and restarting a shuttered coal plant in Maryland.
“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. He was joined by U.S. Interior Secretary Doug Burgum, U.S. Energy Secretary Chris Wright, Environmental Protection Agency administration Lee Zeldin and other top officials.
Trump has said coal power is a matter of national security due to rising energy costs, primarily from the growth of artificial intelligence data centers. He declared a national energy emergency on his first day back in office, which was aimed at boosting domestic fossil fuel production.
High energy costs have also become an issue for voters, with residential electricity bills increasing nearly 11% since Trump resumed office in January 2025, according to the latest available data from the U.S. Energy Information Administration.
The effort to establish a West Coast coal export terminal revives a fight that has played out repeatedly in recent years.
Beginning around 2010, the coal industry began pushing for new export sites in California, Oregon and Washington that would deliver coal from landlocked western states to energy-hungry markets in Asia. Those plans were met with fierce opposition from environmental groups and local communities concerned about climate impacts, coal dust, rail traffic and other potential downsides.
The plans were eventually abandoned, leaving the West Coast without a major U.S. coal export terminal — until now.
“Starting this summer, the West Gateway project will break ground and by summer 2028, over 12 million tons of clean beautiful coal per year will be shipped to countries all around the world,” Trump said.
While the president leaned on coal as an energy cost solution, opponents said the move will actually increase soaring electricity prices — noting that renewables are generally cheaper than coal when it comes to new power generation in the U.S. A recent report from the nonpartisan think tank Energy Innovation found that 99% of all U.S. coal plants are now more expensive to run than replacement by new local solar, wind or energy storage.
“President Trump’s continued attempt to bail out the coal industry endangers public health and leaves Americans footing the bill for more expensive power,” said Shannon Baker-Branstetter, senior director for climate and energy policy at the Center for American Progress.
Baker-Branstetter noted that coal use has been declining for years due to market forces. At the same time, she said pouring taxpayer dollars into a new export facility “means there is no benefit at all to U.S. consumers while the export terminals would burden communities next to the port with deadly soot pollution.”
The burning of coal is one of the largest drivers of air pollution, releasing fine particlesknown to be harmful to respiratory and cardiovascular health. At the same time, coal is a leading driver of human-caused climate change, responsible for about 40% of global greenhouse gas emissions from fuel combustion.
The move also follows the Trump administration’s ongoing efforts to slow U.S. investment in renewable energy, particularly offshore wind power, electric vehicle initiatives and federal funding for solar projects.
“We wouldn’t have the buildings, the factories, the industry, the electricity grid we have today without the critical contribution of coal, the largest source of global electricity for 125 years in a row, and will be for decades to come,” said Wright, the U.S. Energy Secretary.
But investing in coal in 2026 is akin to “a taxpayer bailout to build new phone booths,” said Kit Kennedy, managing director for power at the nonprofit Natural Resources Defense Council.
“The Trump administration’s claim that this has to do with national security is just another false pretext,” Kennedy said. “Instead of bailing out dirty energy, why don’t they end their attacks on cheap, plentiful wind and solar power? That’s the surest way to cut our bills and end our dependence on volatile global energy markets.”
Kennedy added that the latest action from the White House will result in higher bills and dirtier air for Americans.
“The best thing for the air, the climate and our utility bills is to let these plants retire peacefully,” she said.
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