Trump U.S. Coal Power Plant Funding Includes Execution and Funding Risk

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Written by Jesse Broehl, Editor-in-Chief, Breaking Energy News (BEN) (Sugar Land, Texas)

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Summary

On June 4, the Trump administration announced about $425 million in federal grants to support and modernize 13 existing coal-fired power plants in 10 states. IIR is tracking these power plants and related projects.

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Dependence on Defense Production Act May Pose Risk

President Donald Trump significantly expanded his administration's support for coal and coal-fired electric generation on June 4 by committing the federal government to provide funding to support coal mining, coal exports and coal-fired electric generation in the U.S. For more on that, see June 5, 2026, article - Trump Designates US$685 Million to Support U.S. Coal, Power.

According to Industrial Info Resources data, there are more than 200 active capital coal-fired power projects in the U.S., with a total investment value of more than US$20 billion. Readers can find project details in the Industrial Info Resources Global Market Intelligence (GMI) Power Project Database.

The lion's share of funding for the Trump administration's commitment would go directly into coal-fire power unit upgrades across the country. The total capacity of coal units in line to receive about $425 million for this upgrade work is more than 15 gigawatts (GW). However, reliance on the Defense Production Act for funding includes some execution and funding risk.

The specific plants by name, owner and the megawatt (MW) capacity of the units selected for upgrades follows in the chart below. The MW total reflects the current operational capacity of the coal units in line for upgrades. However, the eventual total MW may stay the same or potentially increase if the project includes provisions for power uprating. This is not a guarantee the projects will be commissioned, but increases the odds.

Details on the projects associated with each plant are available in the Industrial Info Resources database at this link for all the power plants in this selection and specifically the coal units at these plants.

In most cases, IIR is tracking a variety of projects in planning stages at these and all other plants. The plant and unit size in most cases corresponds but some of the plants have other operational units--typically natural gas units. The chart below does not include the MW of these additional units that are unrelated to the recent funding.

As is typical in such opportunities, the federal funding is a proportion of the total cost estimated for the upgrade projects. Some data points follow:

• The proportion funded by the U.S. Department of Energy (DOE) is around 34% with the balance of 66% funded by the project owners.
• The average total investment by project is $35 million from the DOE and $68 million from the plant owner.
• The average total investment cost per plant is of $104 million.

Coal Tax Credits Roughly Equal to Renewable Energy Tax Credits

Worth noting as a side point is that most tax credit value for renewable energy projects in recent years and those under construction today is around 30-35% of the CAPEX of those plants, which is similar to the 34% proportion announced by the DOE for the 13 coal plants. In other words, these coal plant projects are being funded at similar levels to how the federal government supports wind and solar plants.

One difference, though, is that tax credits for renewable energy are enacted by the U.S Congress, and done so in very specific legal language. That is versus the announced coal plant funding, which is a unilateral executive branch funding decision and is done under an interpretation of existing law where there is latitude for the executive branch to favor some projects over others. Specifically, these projects would be funded by the Defense Production Act (DPA) Title III. This approach can give the executive branch flexibility and speed to support certain projects, but it comes with some risk.

Defense Production Act Priorities Not Permanent

According to law firm Akin Gump, core DPA authorities are currently authorized only through September 30, 2026, and Congress has not yet approved a reauthorization. Presidential Determinations can be rescinded or revised by future administrations, as recent reversals of prior determinations demonstrate. Guidance from Akin Gump in this analysis says: "The breadth of recent waiver actions may also attract congressional or legal scrutiny, including potential challenges to specific awards or program structures. Companies and investors relying on DPA-based support should therefore weigh the political and legal durability of these actions when making long-term capital and supply chain decisions."

Coal Plant Upgrades Spread Across the U.S.

The geographic spread of the 13 coal plants is across 10 states, three organized RTO/ISO power markets in addition to regulated non-RTO/ISO power markets. The regulated non-RTO/ISO markets represent 5.4 GW and 36%, followed by PJM with 4.2 GW and 28%, and Southwest Power Pool with 3.2 GW and 21% and MISO with 2.1 GW and 15%.

The project funding is not a guarantee that these projects will ultimately be fully funded and constructed. Industrial Info Resources will continue to track progress of each project and update scope, schedules, requests for proposals and other particulars for each project.

Key Takeaways

• The Trump administration has designated federal funding to support and modernize 13 coal-fired power plants across the country.
• The proportion funded by the U.S. Department of Energy (DOE) is around 34% with the balance of 66% funded by the project owners.
• The total capacity of coal units in line to receive about $425 million for this upgrade work is more than 15 gigawatts.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).