The Trump Administration recently announced $850 million in federal funding for coal-fired power plants and related infrastructure. Of that total, $500 million will be directed under the authority of an obscure 1950s law focused on national ​security. The remaining $350 million comes from unobligated balances originally appropriated for carbon capture and storage (CCS) projects in the Infrastructure, Investment and Jobs Act (IIJA).

This Administration's favoritism toward coal and other fossil fuels is well documented. On day one, President Trump declared a "national energy emergency" and directed federal agencies to expedite the development of coal, crude oil, natural gas, and other specified energy resources. In February, he ordered the Pentagon to pursue long term agreements to purchase electricity from coal plants. And recently, the Administration issued an emergency order to keep eight coal units operating beyond their planned retirement dates.

We all want abundant, affordable, and secure energy. But favoritism is not the way to get there. Real energy security comes from competition that allows the most efficient, cost-effective, and durable solutions with the fewest long-term liabilities to rise to the top—not the federal government picking winners and losers.

$500 Million under the Defense Production Act

The Defense Production Act gives the President broad authority to "shape national defense preparedness programs." Under Title III, the President can make loans, purchase commitments, grants, and other forms of financial assistance "to assure the availability of domestic energy supplies for national defense need." Prior to taking action under Title III, the President must demonstrate that: 1) the resource is essential to national defense; 2) domestic capability cannot be achieved in a timely manner without Presidential action; and 3) the proposed action is the most "cost effective, expedient, and practical alternative."

After the Korean War, the impetus for the Act's creation, Title III authorities were used sparingly. Administrations started using the authority again in the 1990s, and cases have expanded rapidly in recent years. In 2024, the Department of Defense (DOD) had 56 active Title III projects. The authority has been used by administrations of both parties for a variety of purposes, including to address the COVID-19 pandemic, respond to Russia's invasion of Ukraine, expand clean energy projects, and, most recently, increase domestic energy production.

Taxpayers have spent billions of dollars on DPA projects over the last decade. From FY2010 to FY2019, Congress appropriated $952 million to the DPA. From FY2020 to FY2025, that number skyrocketed to $4.4 billion. Much of this was provided as "no-year money," meaning it remains available until expended—although only $750 million can roll over each fiscal year. DOD has proposed increasing that cap to $1 billion.

The $500 million in DPA funding will go toward the following coal projects:

• $19 million to Alliant Energy Corporation for a coal-fired plant in Pacific, Wisconsin. 

• $20.826 million to Arizona Electric Power Cooperative, Inc for the Apache Generating Station near Cochise, Arizona. 

• $27.441 million to Basin Electric Power Cooperative for two coal-fired units  in Mercer County, North Dakota. 

• $33.4 million to Duke Energy Kentucky for a coal-fired plant in Boone County, Kentucky.  

• $28.4 million to Duke Energy Progress, Inc. for a coal-fired facility in Person County, North Carolina.  

• $90.6 million to East Kentucky Power Cooperative, Inc. for coal-fired units in Maysville and Pulaski, Kentucky. 

• $28.518 million to Grand River Dam Authority for a coal-fired unit in Chouteau, Oklahoma. 

• $27.2 million to Hallador Power Company, LLC for a coal-fired power station in Merom, Indiana. 

• $22.513 million to Oklahoma Gas and Electric Company for a power station near Red Rock, Oklahoma. 

• $29.814 million to Southwest Electric Power Company for its Flint Creek Coal Plant in Gentry, Arkansas. 

• $46.288 million to the Tennessee Valley Authority for its Cumberland Fossil Plant in Stewart County, Tennessee. 

• $51 million to Wheeling Power Company for the Mitchell Plant in Moundsville, West Virginia. 

• $75 million to Oakland Bulk and Oversized Terminal (OBOT) LLC for a bulk commodities export terminal in Oakland, California.  

$350 Million in Redirected IIJA Funds 

In addition to the $500 million in DPA funds, the Administration announced an additional $350 million that will be awarded to the following "coal modernization and reliability projects":

• A new coal-fired power plant in Anchorage, Alaska. 

• A new coal-fired power plant in Mt. Storm, West Virginia. 

• A retrofit and modernization of an existing coal-fired plant in Guayama, Puerto Rico. 

• A recommissioned coal facility in Cumberland, Maryland. 

This pot of money comes from $950 million of unobligated funds originally appropriated in the IIJA for Carbon Capture Large Scale Pilot and Demonstration Projects but is now directed to the Office of Fossil Energy. Overall, the FY2026 appropriations bill reallocated nearly $5.2 billion in IIJA funds to other Department of Energy programs.

The Administration announced an additional $175 million in grants for coal projects earlier this year under the same funding opportunity, using funds appropriated in the IIJA for activities to improve "the resilience, safety, reliability, and availability of energy" in rural communities.