Trump’s $425M Coal Drive May Influence Wisconsin: Urban Milwaukee

Federal Funding may Prolong Life of Wisconsin’s Coal Power Plants

A planned funding allocation of $425 million by the Trump administration may give a new lease of life to some of Wisconsin’s remaining coal power plants. The funding is intended to sustain operations at 13 coal plants across 10 states. The move is seen by the administration as a means to meet increasing electricity demand and retain numerous jobs that the struggling coal industry supports.

The administration plans to invoke the Defense Production Act, a Cold War-era law that empowers the president to boost American industrial output during times of crisis.

Madison-based utility Alliant Energy has shown interest in this scheme. The utility has applied for a $19 million grant, aimed at extending the operational lifespan of its coal-powered units at the Columbia Energy Center located near Portage in central Wisconsin. These units were initially scheduled to be retired by the end of this decade.

Trump Administration’s Coal Industry Support

President Donald Trump announced the move from the Oval Office, pointing out that the coal plants selected for the aid are all in states that supported him during the 2024 election. He expressed hope that this action will facilitate facility upgrades, extending their operational lives for several decades, and help maintain reliable electricity supply at low prices for Americans. Additionally, he suggested that this could provide support for the nation’s growing artificial intelligence industry.

Apart from the funding for existing coal plants, the administration also plans to allocate $200 million in Department of Energy grants to restart a coal plant in Maryland and construct new ones in Alaska and West Virginia. These mark the first new coal plants to be built in the U.S. in over a decade.

Concerns over the Move

While the Trump administration is pressing ahead with these plans, Wisconsin’s Citizens Utility Board and corresponding organizations in other Midwestern states have voiced their concerns about the costs of these initiatives. These groups have filed an amicus brief in support of a lawsuit challenging federal orders that prevent the closure of coal plants in Michigan and Indiana.

According to Tom Content, CUB Wisconsin Executive Director, the costs of extending the operation of these aging coal plants “are adding to an affordability challenge customers are already experiencing in Wisconsin and nearby states.”

These concerns have been echoed by the Clean Wisconsin spokesperson Amy Barrilleaux. She pointed out that burning coal releases a range of harmful chemicals and heavy metals into the environment. Additionally, coal is one of the most expensive ways to produce energy in Wisconsin, especially when compared to wind and solar power.

Alliant Energy’s Renewable Energy Investments

Alliant Energy has been investing in renewable energy generation over recent years, in part thanks to clean energy tax credits extended by the Inflation Reduction Act in 2022. However, with the Trump administration reversing many of the Biden-era tax incentives for renewable energy development, Alliant noted in its 2025 annual report to the Securities and Exchange Commission that the termination of these credits could “adversely impact” the company’s finances.

Alliant has not yet responded to inquiries about the status of Department of Energy financing for its wind and battery storage projects.

Meanwhile, U.S. Interior Secretary Doug Burgum argued that the clean energy tax incentives create a misleading image of the viability of renewable energy sources, saying that wind energy developers are “just trying to generate tax credits.” President Trump agreed, stating, “Energy shouldn’t need subsidy.”