Trump said the funds would be used to keep 14 coal plants in ten states and 42 mines open, as well as to build two new coal plants and an export terminal.

The Republican said the funds would be tapped using the Defense Production Act, which was enacted in 1950 and gives the US president emergency power over domestic industries.

Trump frequently calls human-induced climate change "a hoax" and has worked since returning to power last year to wipe out a number of environmental regulations, many of which limited fossil fuel use.

Coal is the fuel that emits the highest levels of greenhouse gases, contributing to climate change.

US Energy Secretary Chris Wright on Thursday said coal was "a critical source of our electricity, also a critical source for our industry."

- New US coal policy -

The world built and commissioned more coal power in 2025, but used the polluting fuel less, with the United States the only major economy to substantially increase generation, analysis by the Global Energy Monitor shows.

The US Energy Information Administration (EIA) expects US coal-fired generation to decline an average of five percent annually through 2027, according to a January report.

In 2025 it accounted for 17 percent of US power generation, according to EIA figures.

Thursday's announcement was Trump's latest effort to fortify the fossil fuel, which he often refers to as "clean beautiful coal."

On February 11, Trump signed an executive order directing US Defense Secretary Pete Hegseth to enter into long-term supply contracts with US coal power plants.

In a photo op at the White House signing of that order, the president was feted as the "undisputed champion" of coal, surrounded by miners in hard hats.

The next day, Trump repealed a 2009 EPA "endangerment finding" underpinning US climate regulations. A coalition of environmental and health groups have challenged the action in court.

Global average temperatures are likely to continue at or near record levels this year and for the next four years afterwards, the United Nations warned last week.

UN climate chief Simon Stiell said the "main culprit" of warming temperatures was humanity's burning of coal, oil and gas -- the primary driver of climate change.