Peabody Rises 4% as Trump Orders $700M Coal Industry Funding
BTU•President Trump invoked the Defense Production Act to allocate $700 million toward the U.S. coal industry, including $425 million to upgrade 13 coal plants, $75 million for an Oakland export terminal and $200 million in DOE grants for three new or restarted plants. Peabody Energy shares rose 4%.
1. Defense Production Act Allocation
President Trump invoked the Defense Production Act to direct $700 million in federal funds to revive the U.S. coal industry. The package designates $425 million for upgrades at 13 coal-fired power plants across 10 states, $75 million to build a new export terminal in Oakland, California, and $200 million in Department of Energy grants to construct two new plants in Alaska and West Virginia and to restart a plant in western Maryland.
2. Peabody Energy Stock Response
Peabody Energy shares rose 4% on the day as coal stocks rallied on the funding announcement. Investors reacted positively to the prospect of increased demand and infrastructure investments that could boost coal production and utilization.
3. Industry and Consumer Impact
The administration estimates the initiative will create thousands of jobs for miners, engineers and construction workers, while saving consumers $50 billion in energy generation costs. This marks the first new U.S. coal plants since 2013 and underscores a national security rationale tied to rising electricity demand from AI data centers.
4. Stakeholder Reactions
National Mining Association officials praised the decisive action to enhance existing assets and U.S. export capacity. Environmental groups criticized the move as harmful to public health and counter to clean energy trends, warning it props up legacy coal interests with taxpayer dollars.
