June 5, 2026 - Shares of Peabody Energy and other coal stocks advanced on Thursday as President Donald Trump announced he is funneling around $700 million to the sector.

Trump announced $500 million in Defense Production Act money to 13 coal-fired power plants and an export terminal in California. The president also announced nearly $200 million in grants to build coal plants in Alaska and West Virginia, along with funding to restart a coal plant in Maryland.

Those would be the first new U.S. coal plants since 2013, according to the White House.

Trump made the announcement around 3:20 p.m. ET from the Oval Office, joined by other members of his administration.

“It’s real power and in terms of real power, there’s really nothing like it,” Trump said of coal.

The president framed the decision to push federal funds into the coal sector as a way to compete with China, claiming that China built more than 50 coal plants last year and only built wind turbines to sell the U.S. and Europe.

Trump’s plan was first reported by Bloomberg News and later confirmed by Barron’s.

This is the latest move by Trump to bolster the U.S. coal industry, after signing an executive order in February directing that military bases contract with coal plants for power.

Newcastle coal futures have risen around 37% this year and have gained about 40% over the past 12 months, according to according to Dow Jones Market Data.

The Range Global Coal Index ETF COAL rose 2.3% on Thursday, while the S&P 500 Index SPX advanced 0.4%. Among coal stocks, Peabody Energy gained 3.7% to $31.22.

Since bottoming at $23.36 on May 20, Peabody stock has rallied 33%. Alpha Metallurgical Resources AMR rose 1.1% and Warrior Met Coal HCC added a fraction. Core Natural Resources gained 2.5%. Among utilities, Duke Energy edged up 0.7% and American Electric Power rose 1.2%.