MW Coal stocks climb as Trump shovels $700 million to the sector
By Victor Reklaitis
President Donald Trump is expected to talk about his new effort to boost coal power plants and coal exports at around 3 p.m. Eastern time
The Trump administration is rolling out its latest effort to aid the coal industry.
Coal stocks advanced Thursday, helped by news that President Donald Trump plans to provide about $700 million to the industry through a Korean War-era law that gives the federal government authority over sectors tied to national security.
Trump is expected to aim to deliver $425 million in Defense Production Act funds to 13 existing coal-fired power plants, along with $75 million in DPA money for an export terminal in Oakland, Calif., to ship out American coal. He also looks set to try to provide $185 million in Energy Department grants to help build a coal plant in Alaska and another in West Virginia, as well as to restart one in western Maryland.
Trump's plan was first reported by Bloomberg News and was confirmed to MarketWatch by a White House official. The president appears on track to address the matter at a White House event at around 3 p.m. Eastern time.
An exchange-traded fund that tracks coal stocks, the Range Global Coal Index ETF COAL, recently traded higher by 2%, while the broad S&P 500 equity index SPX was little changed. Peabody Energy (BTU) was up by 3%.
Duke Energy $(DUK)$, Hallador Energy $(HNRG)$ and American Electric Power $(AEP)$ are among the expected beneficiaries of the planned funding, according to Bloomberg's report. Those companies' shares were up by less than 1%.
Thursday's move is the latest in a series of Trump administration actions that aim to revive the coal industry. In February, an executive order called for military bases to make electricity contracts with coal plants. Supporters say the revival is about meeting the demand for electricity, especially from the booming artificial-intelligence sector, and it's about achieving energy security through domestic resources and reshoring manufacturing. Critics say it's just postponing coal's inevitable demise.
The U.S. Energy Information Administration expects coal to generate 16% of electricity in the U.S. this year and 15% in 2027, down from 17% in 2025.
Natural gas keeps the lights on for the most part, generating 40% of U.S. electricity last year, with a stable market share expected through 2027. Nuclear delivered 18% last year, while wind and solar were at 11% and 7%, respectively.
Claudia Assis and Myra P. Saefong contributed.
-Victor Reklaitis
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(END) Dow Jones Newswires
June 04, 2026 11:09 ET (15:09 GMT)
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