Trump Allocates $175M to Upgrade Coal Plants, Targets Co-Funding to Revive US Coal Power

The Trump administration is injecting $175 million to upgrade six coal-fired power plants and using the Department of Defense to purchase electricity from others, aiming to extend generator lifespans and explore co-funding for new capacity. However, industry experts say private investment remains the linchpin for new coal projects, and the plan is unlikely to reverse the sector’s long-term decline. Demand for coal is expected to fall to about 16% of U.S. electricity this year, down from over 50% in the past. Trump’s moves to roll back emissions rules and promote fossil fuels are seen as incremental, not transformational, with utilities shifting toward renewables and natural gas. Peabody Energy Corp. (PEB) rose over 6% and Ramaco Resources Inc. (RAM) gained 3% on the announcement. Administration officials are seeking federal-private partnerships to support “triple co-location” of mines, coal plants, and data centers to reduce transmission costs, but political and risk uncertainties remain high, with no guarantee of support under future administrations.