The Trump administration is making $100 million available to update and modernize existing coal-fired power plants. The announcement came from the Department of Energy on Friday.
The Energy Department issued a notice of funding opportunity for projects that improve efficiency and extend plant lifespans. It will also support work that increases the performance of coal and natural gas facilities.
The department said the initiative is designed to help keep coal plants operating. Officials also said the funding will help ensure reliable and affordable power for American consumers.
Energy Secretary Chris Wright praised the effort. He said the new funding will support “practical, high-impact projects” within the current coal fleet. Wright also criticized past administrations. He said that regulations and political pressure from the Obama and Biden years harmed the coal sector and raised energy prices.
“For years, the Biden and Obama administrations relentlessly targeted America’s coal industry and workers, resulting in the closure of reliable power plants and higher electricity costs,” Wright said. “Thankfully, President Trump has ended the war on American coal and is restoring common sense energy policies that put Americans first.”
Coal use in the United States has been declining since its peak in 2007. The Hill reported that coal accounted for about 16 percent of U.S. electric power in 2023. The Energy Information Administration expects that number to keep falling.
According to The Epoch Times, the EIA projects that coal-fired capacity will fall from 172 gigawatts to 145 gigawatts by the end of 2028.
Many plants are scheduled to close in the next few years. Ten are in the Midwest. Five are in the Mid-Atlantic. Four are in Tennessee and three are in the Northwest.
The new funding will support coal facilities that install technology to recover water and materials from plant wastewater. It will also help plants with automatic fuel switching between coal and natural gas. The department said it will support projects that improve co-firing capabilities with gas as well.
Earlier this year, the Trump administration directed $625 million toward coal-related initiatives. The administration has also extended the operation of specific coal plants. It has reduced environmental regulations. It also ordered a Michigan coal plant to stay open.
Trump signed an executive order instructing agencies to identify coal resources on federal land. The order told them to lift restrictions on mining. It also directed agencies to remove rules that discourage coal production or favor other energy sources.
The Department of Energy said the goal is straightforward. The administration wants the nation’s coal plants to keep running. Officials say the United States needs dependable power to meet future demand.
It is not immediately clear where the $100 million will come from. The department said applications for funding will begin soon.