Coal council urges DOE loan guarantees for coal plants in 2026

A federal coal advisory council recommended the Energy Department provide loan guarantees and grants to sustain existing coal plants and finance new construction.

A coal advisory council to the Trump administration on Tuesday urged the Energy Department to provide loan guarantees and grants for existing coal plants and new ones, recommending federal financing tools be extended to the sector.

The recommendation, submitted to Energy Secretary Chris Wright, calls on the DOE to use its loan authority to support coal-fired generation, the council said. The group advises the administration on coal industry policy.

The request covers both operational plants facing retirement and new projects, though the council did not specify a dollar amount or number of eligible facilities. The recommendation comes as the Trump administration has prioritized domestic fossil fuel production through executive orders and regulatory rollbacks.

If adopted, the financing program would mark a significant federal intervention in coal markets, potentially extending the life of plants scheduled for retirement. The recommendation aligns with President Donald Trump's broader energy agenda, which has included withdrawing from the Paris climate accord and easing emissions rules.

The council's recommendation targets the DOE's existing loan programs, which have historically backed nuclear, renewable, and carbon capture projects. Redirecting that authority toward coal would represent a policy shift for an office that has financed energy infrastructure for two decades.

The coal sector has faced mounting financial pressure from low natural gas prices and competition from renewables. The Trump administration has taken several steps to support coal since returning to office, including rolling back EPA emissions rules and approving new mining permits on federal lands. The council's recommendation extends that effort into direct financial support.

The DOE did not immediately respond to a request for comment on whether it would adopt the recommendation. Any loan program would require congressional appropriations or reallocation of existing authority, which could face opposition from lawmakers who favor clean energy spending.

This article is for informational purposes only and does not constitute investment advice.