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Trump Administration Opens 13 Million Acres for Coal and Commits $625 Million to Prop Up Power Plants

The White House says the move preserves grid reliability for an AI‑hungry power market.

A coal preparation plant outside of Welch, West Virginia, is pictured on March 16.
Coal use has been ‘displaced in many cases by cheaper and cleaner natural gas, wind and solar power’
FILE - In this April 4, 2013, file photo, a mining dumper truck hauls coal at Cloud Peak Energy's Spring Creek strip mine near Decker, Mont. AP Photo/Matthew Brown, File)

Overview

  • Interior will make roughly 13 million acres of federal land available for coal leasing and streamline mine approvals, building on an earlier law that lowered federal royalty rates to 7%.
  • DOE’s $625 million package includes $350 million to modernize or recommission plants, $175 million for rural coal projects, $50 million for wastewater upgrades, $25 million for dual‑fuel capability and $25 million for boiler efficiency.
  • EPA will delay seven wastewater compliance deadlines for coal plants and start a 60‑day public comment period on potential changes to the regional haze rule.
  • Administration officials argue coal is needed to ensure dispatchable power as electricity demand rises with data centers and artificial intelligence.
  • Environmental groups condemn the plan as costly and polluting, and analysts note coal generated about 15% of U.S. electricity in 2024 and faces cheaper competition from natural gas and renewables.