The U.S. coal sector is back in the spotlight after President Donald Trump pledges a $700 million plan to revive the US coal industry, including the coal-fired power plants and expanding coal exports. The move comes at a time when coal’s share in America’s electricity mix has dropped sharply from about 45% in 2010 to nearly 15% in 2024 as natural gas and renewable energy continue to dominate the grid. Natural gas now accounts for roughly 43% of US electricity, while the rest comes from nuclear, wind, solar, and hydropower.

The announcement is part of a broader push to stabilize energy supply amid rising demand from data centers, artificial intelligence, and electric vehicles, sectors that are significantly increasing electricity consumption across the country.

$700 Million Plan, Jobs, and Coal Infrastructure Expansion

The funding package is expected to support 13 coal plants across multiple states, along with new developments in Alaska and West Virginia, which would mark the first new coal plant construction in the US since 2013. It also includes support for restarting a shuttered plant in Maryland and building a long-delayed coal export terminal in Oakland, California.

A White House official said the initiative will generate or support more than 14,000 jobs, spanning coal operations, construction, rail logistics, and maritime export activity.

At the announcement ceremony, Trump described coal as “a great business,” saying: “It’s real power. In terms of power, there’s really nothing like it.”

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Energy Security Push Amid Rising Power Demand

The administration argues that coal remains essential for grid stability during a period of rapidly increasing electricity demand.

• Under recent energy directives, coal plants in states including Michigan, Indiana, Colorado, and Washington have been required to remain operational beyond planned retirement dates.
• Similar extensions have also been applied to oil and gas plants in Maryland and Pennsylvania, as the Energy Department aims to prevent supply shortages during peak demand periods.

Officials have claimed these emergency measures helped avoid blackouts during extreme winter conditions earlier this year.

The Trump administration has also previously announced plans to open 13 million acres of federal land for coal mining and allocated $625 million to modernize or recommission coal-fired plants, signaling a long-term strategy to stabilize the sector.

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Opposition and Support

Strong Opposition From Environmental Groups

The plan has triggered sharp criticism from environmental organizations, which argue it will increase pollution and electricity costs.

Kit Kennedy of the Natural Resources Defense Council said: “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.”

She also warned that the policy could lead to higher electricity bills and dirtier air, arguing that retiring coal plants would be better for both health and energy affordability.

Supporters Say Coal Improves Energy Stability

Industry leaders, however, argue that coal provides reliability during periods of energy stress.

Rich Nolan, CEO of the National Mining Association, said coal helps protect consumers from volatile energy prices and supply shocks, particularly as electricity demand rises due to AI and digital infrastructure growth.

He added that the strategy will ensure upgrades to energy assets and strengthen U.S. export capacity for global coal demand.

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Global Coal Trends and Market Reality

Despite the policy push, coal’s global outlook remains mixed. The International Energy Agency notes that while global coal demand recently reached record highs, it is expected to flatten or decline in the coming years.

The U.S. also saw a decline in coal exports during the first year of Trump’s second term, partly due to reduced shipments to China following tariff disputes.

Still, Trump pledges a $700 million plan to revive the US coal industry, signaling a clear intent to reposition coal within the national energy strategy, even as the global transition toward cleaner energy continues to accelerate.

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