Trump allocates $700 million to coal plants under Defense Production Act, drawing from climate funds

The Trump administration announced $700 million in federal funding to support existing coal plants and build two new ones in Alaska and West Virginia. The money comes from Congress's original allocation for reducing CO2 emissions from heavy industry, redirected under the 1950 Defense Production Act. Critics call it a bailout for a sector that has lost 330 plants since 2010 and now supplies only 10 percent of US electricity. Environmental groups like the Sierra Club and Evergreen Action argue the funds cannot reverse coal's long decline. The administration claims the initiative will create 14,000 jobs, but experts point to market forces and cheaper alternatives. The move highlights the growing tension between AI-driven power demand and climate commitments as data centers push utilities to extend fossil fuel plant lifetimes.