[Video below.] President Donald Trump announced Thursday that he will use emergency wartime authorities to channel nearly $700 million into the American coal industry, aiming to expand coal exports overseas and increase coal-powered electricity generation at home.

The initiative will rely on the Defense Production Act of 1950, a law enacted during the Cold War that gives the president sweeping powers to support industries considered vital to national security. Under the plan, federal funds will be directed toward modernizing more than a dozen coal-fired power plants, helping finance the construction of two new coal facilities, and advancing development of a coal-export terminal on the West Coast.

Administration officials have argued that strengthening domestic energy production is essential for national security, particularly as electricity demand rises due to the rapid growth of artificial intelligence infrastructure. They also contend that expanding U.S. energy capacity will reduce dependence on foreign sources.

Environmental groups quickly blasted the proposal, accusing the administration of spending taxpayer dollars to prop up an industry they say contributes heavily to pollution and climate concerns.

Patrick Drupp, climate policy director at the Sierra Club, called it a taxpayer-funded subsidy for a polluting industry and said the group would fight the initiative in courts.

“It is disgusting and reprehensible that the president of the United States is giving away our taxpayer dollars to deadly and expensive coal plants,” Drupp said.

Industry leaders, however, praised the move. Rich Nolan, president and CEO of the National Mining Association, said the investment would help maintain a stable energy supply while meeting growing electricity needs and shielding consumers from volatile energy prices.

“The administration is supporting ⁠that strategy with decisive action at home to ensure that upgrades to existing energy assets are made, and at our ⁠ports to ⁠ensure that U.S. coal can answer the world’s needs,” Nolan said.

Coal once dominated the nation’s electricity grid, accounting for more than half of all U.S. power generation in 1990. Today, however, its share has fallen below 20 percent as utilities increasingly turned to natural gas and renewable energy alternatives.

Although Trump has rolled back numerous regulations affecting the coal sector, employment in the industry has continued to decline. Federal data cited from the St. Louis Federal Reserve shows that the number of coal miners in the United States dropped from roughly 51,500 in 2017 to approximately 39,800 last year.

According to a White House official, more than half of the funding package will be allocated to upgrades at 13 existing coal-fired power plants. Additional funding will support coal-related projects in Alaska, Maryland, and West Virginia, as well as the long-discussed West Gateway coal export terminal in Northern California.

{Matzav.com}