The Trump administration outlined a plan to mine and generate more electricity from coal. The administration will open 13 million acres of federal lands for coal mining and provide $625 million to recommission or modernize coal-fired power plants, including $350 million for recommissioning and retrofitting plants and an additional $175 million for projects in rural areas. Trump’s Department of Energy (DOE) has required fossil-fueled power plants in Michigan and Pennsylvania to keep operating past their retirement dates to meet rising power demand due to growth in data centers, artificial intelligence, and electrification. The current plan is to expand efforts to keep current coal plants operating so that there is reliable energy to meet demand and to avoid possible electricity shortfalls.
According to the Los Angeles Times, President Trump has also directed federal agencies to identify coal resources on federal lands, lift barriers to coal mining, and prioritize coal leasing on public lands. His administration and Congress have reduced royalty rates for coal mining from 12.5% to 7%, which will help ensure U.S. coal producers can compete in global markets, particularly as China’s utilities have turned to importing more coal after its domestic production faltered from increased mine safety inspections. The new plan also streamlines federal reviews of coal leases.
Coal generated just 16% of U.S. electricity production in 2024, down from over 50% in 2005 and 46% in 2010. Natural gas provided 42% of U.S. electricity generation in 2024, with the remainder coming from nuclear energy, hydropower, and renewables, such as wind, solar, biomass, and geothermal. Coal was the largest source of U.S. electricity production until 2015, and then its decline began due to Obama administration regulations and policies, and competition from low-cost natural gas. In terms of total energy production, coal accounted for less than 10% in 2024 — the lowest annual output since 1964.
Besides the aforementioned spending programs for recommissioning and retrofitting plants and projects in rural areas, the DOE has committed to provide the rest of the $625 million in funding for coal as follows:
- $50 million to support the development and implementation of advanced wastewater management systems: to demonstrate scalable, cost-effective wastewater management systems that enables coal plants to extend their service life, reduce operational costs, and enhance commercial byproduct recovery.
- $25 million for engineering and implementation of dual firing retrofits: to enable coal power plants to seamlessly switch between fuels, achieve full steam capacity, and economic flexibility to extend plant lifespans.
- $25 million for development and testing of natural gas cofiring systems: to support investments that will maintain boiler efficiency and reliability when utilizing 100% natural gas.
China is still Building Coal Plants
Over the past decade, as the United States retired over 100 gigawatts of coal-fired electricity-generating capacity due to Obama and Biden regulations and policies, China added almost 300 gigawatts. According to the 2025 Statistical Review of World Energy, China consumed 92.2 exajoules of coal last year — 56% of global coal use and a 66% increase since 2005 — despite repeated claims that the country had already reached “peak coal.” While advocates of renewable energy highlight China’s growing wind and solar capacity, coal continues to serve as the foundation of the nation’s power generation, industrial output, and energy security strategy. In 2024, China produced 57.8% of its generation from coal.
Analysis
Despite its reduced role in electricity generation, coal continues to play an important role in providing reliable, dispatchable power to meet growing electricity demand, while also being cleaner than ever before. Still, the Trump administration should be criticized for subsidizing the industry with investments that mirror those that the Obama and Biden administrations provided for solar and wind. Much of coal’s fall from glory has to do with competition from cheap natural gas, meaning that subsidizing coal could crowd out investment that would lower costs for consumers. If the Trump administration wants to truly achieve its goal of energy abundance, it should continue to prioritize helping coal succeed through deregulation and access to leasing, not giveaways.
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