U.S. Energy Department Awards $500 Million for Coal Plants and Export Infrastructure

The U.S. Department of Energy on June 4 announced up to $500 million in Defense Production Act funding for coal-fired power plants and export infrastructure, advancing the Trump administration’s broader strategy to preserve coal generation as a source of reliable baseload power and a pillar of U.S. energy security.

The funding package includes up to $425 million for 12 projects intended to strengthen and expand the domestic coal fleet and up to $75 million for the West Gateway Terminal Project in Oakland, California, a marine export facility capable of handling more than 10 million tons of bulk commodities annually. The West Gateway project is expected to expand coal export capacity to allied nations in Asia, including Japan, South Korea, Taiwan, Vietnam, and Malaysia, while supporting broader energy trade objectives.

The announcement adds to a series of administration actions aimed at slowing the decline of the U.S. coal sector. In February 2026, President Trump signed an executive order directing federal agencies to secure electricity from coal-fired power plants through long-term power purchase agreements or similar arrangements serving military installations. DOE has also awarded $175 million to modernize and extend the operating life of coal-fired facilities serving rural and remote communities as part of a broader $525 million coal reliability initiative.

In another move, DOE on June 4 selected four coal modernization and recommissioning projects for up to $350 million in funding, including proposals for new coal-fired generation in Alaska and West Virginia, upgrades to a 510-megawatt facility in Puerto Rico, and the recommissioning of a 205-megawatt plant in Maryland. Together, the projects could preserve or add approximately 3,565 megawatts of coal-fired capacity.

The latest funding announcements indicate federal officials are pursuing a more active role in preserving existing coal generation and supporting new investments as concerns over grid reliability and growing electricity demand continue to increase.