Trump Uses Defense Production Act to Funnel Millions into Coal

Donald Trump has invoked the Defense Production Act to grant the U.S. coal industry access to potentially hundreds of millions of dollars in federal funds. This latest move comes on top of hundreds of millions already directed to the sector by the current administration through earlier policy decisions.

The coal industry in the United States has been in decline for close to two decades, squeezed by cheap natural gas, rapidly falling solar and wind costs, and shrinking demand from utilities transitioning to cleaner sources. Analysts widely view the sector's contraction as a structural, market-driven shift rather than a reversible trend.

Critics argue the policy amounts to a double burden on American taxpayers: public money props up a fading industry while the continued reliance on coal generation risks keeping electricity prices higher over the long term. The move stands in sharp contrast to energy policy directions in the EU, where the energy transition — driven by solar, wind, and heat pumps — is being actively accelerated.

Global renewable energy momentum remains strong regardless of U.S. domestic policy shifts. According to the IEA's latest forecasts, solar and wind capacity will continue expanding worldwide, and coal's share of the global energy mix is expected to keep declining — subsidies may slow the process in the U.S., but are unlikely to reverse it.