Trump Prepares $700m Package to Support US Coal Sector

Donald Trump’s administration is preparing a package worth about $700m to support the US coal sector.

To that end, the White House said Trump plans to invoke the Defense Production Act of 1950, a Cold War-era law that grants broad powers in matters linked to national security.

More than half of the funding is expected to go toward upgrades at 13 coal-fired power plants. A further $185m is to help fund projects in Alaska, Maryland and West Virginia, while the planned West Gateway export terminal in California is also set to receive support.

The White House has justified the move by pointing to rising electricity demand, driven largely by the growth of artificial intelligence and energy-intensive data centers.

The administration says the US needs stable sources of power for rapidly expanding data centers and AI development. It also argues that the package will help reduce dependence on foreign competitors in the energy sector.

(reuters, mja)