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Trump Administration’s Bold $625 Million Push to Revive the Coal Industry

September 29, 2025
in Environment
Reading Time: 5 min

The Trump administration recently unveiled a comprehensive strategy to reinvigorate coal mining and burning, a sector globally recognized as the primary contributor to climate change. This bold move comes despite the sharp decline in U.S. coal consumption since 2005, largely due to the rise of more affordable and cleaner alternatives like natural gas, wind, and solar power.

As part of this initiative, the Interior Department announced plans to open 13.1 million acres of federal land for coal extraction and significantly reduce the royalty fees for mining companies. Simultaneously, the Energy Department committed $625 million to modernize and extend the operational life of existing coal-fired power plants, many of which were slated for closure. Adding to this, the Environmental Protection Agency revealed its intention to repeal numerous Biden-era regulations designed to control carbon dioxide, mercury, and other harmful emissions from these plants. The EPA will also reconsider a costly regulation concerning wastewater pollution from power facilities.

During the announcement at the Interior Department, administration officials, flanked by miners in hard hats, echoed President Trump’s familiar refrain: “Clean, beautiful coal.” This event followed closely on the heels of Mr. Trump’s address to the United Nations General Assembly, where he offered abundant and affordable energy supplies, including natural gas, oil, and coal, to any nation in need. His strong support for the coal industry has been a consistent theme since his 2016 presidential campaign.

Once a dominant force, generating nearly half of America’s electricity, coal plants accounted for only 16 percent of power generation last year. Hundreds of these plants have been retired since the mid-2000s, replaced by natural gas, wind, and solar. Stricter environmental rules concerning air and water pollution have also increased the operational costs of burning coal. Furthermore, coal mining itself, known for contributing to severe air pollution, water contamination, and black lung disease among miners, has faced growing federal scrutiny and restrictions.

Interior Secretary Doug Burgum and EPA Administrator Lee Zeldin characterized these environmental regulations as an “ideological war on coal,” while Energy Secretary Chris Wright dismissively remarked on Fox that coal was “out of fashion with the chardonnay set in San Francisco, Boulder, Colo., and New York City.” Notably, the term “climate change” was entirely absent from the hour-long coal event; instead, officials emphasized coal’s perceived economic importance. As Mr. Burgum stated, “In addition to drill, baby, drill, we need to mine, baby, mine.”

The long-term impact of the Trump administration’s efforts to revive the industry remains uncertain. However, a recent surge in electricity demand, driven by the booming interest in artificial intelligence and data centers, has already prompted utilities to delay the closure of over 50 coal-burning units, according to America’s Power, a leading industry trade group. Should the administration successfully ease pollution standards, it could encourage more plants to remain operational or increase their output.

This isn’t the first time the Trump administration has intervened to support coal. In June, the Energy Department issued an emergency order to prevent a Michigan coal plant from closing, even though neither the grid operator nor the local utility requested it. The financial burden of this extension is expected to fall on consumers. Mr. Wright has hinted that similar orders may follow, even as over 100 plants are currently scheduled for retirement by the end of Mr. Trump’s term.

During a recent Climate Forward event hosted by The New York Times, Mr. Wright affirmed his belief that the administration’s policy would focus on preventing coal plant closures, primarily through cooperation with utility companies. On Monday, Under Secretary for Energy Wells Griffith pointed to a recent Energy Department study that warned of an increased risk of blackouts if too many coal plants shut down. This study, however, has drawn criticism from clean-energy advocates and Democratic-led states, who view its conclusions as overly pessimistic regarding the capacity of rapidly expanding energy sources like wind, solar, batteries, and natural gas to strengthen the national power grid.

Holly Bender, Chief Program Officer at the Sierra Club, an environmental organization, condemned the administration’s actions, stating they would exacerbate air and water pollution and drive up electricity costs. She declared, “The Trump administration’s reckless actions announced today will hurt the American people, all to prop up the aging and outdated coal industry.”

While ardently advocating for fossil fuels, the administration has simultaneously pursued measures to restrict the growth of wind and solar power across the country, branding these renewable sources as unreliable and overly dependent on weather conditions.

Globally, coal consumption has been on the rise, particularly in countries like China. Last year, the International Energy Agency reported that global coal demand reached an all-time high, though the agency anticipates this demand will stabilize in the coming years. Mr. Burgum cited this global trend to justify U.S. investment in coal, noting, “China is absolutely the number one user of coal and they are aggressively adding more power… Our nation can lead in technology but if we don’t lead in electrical production, we’re going to lose the A.I. arms race.” Ironically, even as it increases coal use, China has also emerged as a global leader in wind and solar energy development, and just last week, announced its first-ever plans to begin reducing planet-warming greenhouse gas emissions by 2035.

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