Trump Administration Launches Largest Federal Coal Sales in Decade

The Donald Trump administration launched a wide-ranging initiative in October 2025 to reverse the long-term decline of the U.S. coal industry. The plan includes opening 13.1 million acres of federal lands for mining, allocating $625 million to modernize or recommission coal-fired power plants, and reducing coal mining royalty rates from 12.5% to 7%. To further support the industry, the EPA delayed seven wastewater pollution deadlines and reviewed regional haze rules, while the administration canceled $8 billion in clean energy grants across 16 states.

Officials, including Interior Secretary Doug Burgum and Energy Secretary Chris Wright, linked the push to the "AI arms race," arguing that increased coal production is essential to meet soaring electricity demands from data centers and prevent grid blackouts. The administration subsequently initiated the largest federal coal sales in over a decade, offering 600 million tons of coal from the Powder River Basin in Montana and Wyoming. These sales proceeded despite a government shutdown, as the administration opted not to furlough staff reviewing fossil fuel projects.

Market response remained muted. In the first major sale on October 6, the Navajo Transitional Energy Company submitted the sole bid of $186,000 for 167 million tons of coal in southeastern Montana—equating to just one-tenth of a penny per ton. This starkly contrasts with a 2012 bid of $1.10 per ton in the same region. Following this poor participation, a related sale in Wyoming was postponed. Environmental groups such as Earthjustice denounced the moves as subsidies for "dirty, uncompetitive energy" and vowed legal challenges.