According to the latest reports, the U.S. Department of the Interior and Department of Energy have jointly launched a major initiative, announcing the opening of 13.1 million acres of federal land for coal mining and providing $625 million in dedicated funding. According to the official statement, the Department of the Interior will attract mining companies to participate in land leases by lowering royalty rates, while the Department of Energy funds will be specifically allocated to maintain the operation of aging coal-fired power plants.
Interior Secretary Bill Burgum emphasized that this move will “create significant jobs and ensure energy security,” while Energy Secretary Dan Wright stated that coal is “critical to stabilizing electricity prices,” declaring it “will once again become the engine of industry.” This follows President Trump’s April executive order easing environmental regulations and represents another targeted policy to bolster the coal sector.
Policy Push: Energy and Politics
The policy announcement stems from the stark contradictions within America’s energy structure and underlying political considerations. Data reveals that coal’s share of U.S. electricity generation has plummeted from 45% in 2010 to just 15% in 2024, reflecting the industry’s sustained decline. The Trump administration attributes this downturn to “Biden’s war on coal,” seeking to fulfill campaign promises to conservative voters and coal miners through policy intervention.
Simultaneously, the rapid expansion of artificial intelligence and data centers has driven a surge in electricity demand, with the government viewing coal as a means to “quickly fill the gap.” Additionally, lowering the cost of traditional energy to attract the return of heavy industries like steel has become a key consideration in policy design.
Coal Struggles: Market vs. Environment
Despite unprecedented policy support, the coal industry’s recovery prospects remain widely questioned. Data from the U.S. Energy Information Administration shows that planned coal capacity retirements will double to 8.1 gigawatts by 2025, accounting for 66% of total annual power capacity retirements. Analysts note that most coal plants have reached their 50-year design lifespan, face high maintenance costs, and private capital has long shifted toward natural gas and renewable energy sectors.
Environmental groups criticize the move as a “step backward to the fossil fuel era.” Kelly, director of the Environmental Defense Fund, states that coal plants are “outdated, polluting, and lacking competitiveness,” running counter to the clean energy transition trend. The United Nations Environment Programme further warns that such policies will severely undermine the global 1.5°C temperature control target.
