Can President Trump Really Revive U.S. Coal?

It is no secret that Presidents Barack Obama and Joe Biden did everything in their power to end America’s coal industry while they were in office. The “Clean Power Plan” formally invoked by the Obama EPA in 2015 set off an unprecedented wave of coal plant retirements which continued through the first Donald Trump presidency and into the Biden Administration (see chart below).

Altogether, about 40% of the existing U.S. coal fleet in 2010 had been retired by the end of 2024, with more retirements projected in the coming five years. The power source which had provided about 50% of U.S. power generation in 2000 fell to just 15% in 2024.

To environmental activists, the systematic deconstruction of America’s coal industry was a beautiful thing, a way to meet emissions goals set under the Paris Climate Accords. But officials in this second Trump administration, including the President himself, see it as a waste of an enormously valuable resource given that U.S. coal reserves far exceed those of any other nation on earth.

Trump’s Renewed Focus On “Beautiful, Clean Coal”

Despite having not seeing much success in reversing this trend during his first term in office, President Trump seems determined to produce real results this time around. Indeed, the reinvigoration of the domestic coal industry has been a topic on the minds of both Trump and Energy Secretary Chris Wright in recent weeks.

In a March 17 post on Truth Social, Trump wrote about the topic, saying, “[a]fter years of being held captive by Environmental Extremists, Lunatics, Radicals, and Thugs, allowing other countries, in particular China, to gain tremendous Economic advantage over us by opening up hundreds of all Coal Fire Power Plants, I am authorizing my Administration to immediately begin producing energy with BEAUTIFUL, CLEAN COAL.”

Obviously, there is a great deal of disagreement in today’s society with the President’s assessment of coal power being either beautiful or clean, but the point is clear: The Trump administration plans to take full advantage of America’s unmatched wealth in coal resources.

As new power demands from the rapid expansion of datacenters, AI growth, and the anticipated expansion of U.S. manufacturing stemming from the Trump tariffs and other economic policies accelerates, the need for a big expansion in reliable and affordable baseload capacity becomes increasingly urgent. This need is amplified by the rising realization that the power needs of AI datacenters, which must remain online more than 99% of the time, cannot be met by wind and solar combined with stationary batteries.

In an interview on Feb. 15, Sec. Wright took a softer tone, saying, “Coal has been essential to the United States’ energy system for over 100 years. It’s been the largest source of global electricity for nearly 100 years, and it will be for decades to come, so we need to be realistic about that.”

Regardless of the tone, the overall theme is clear: This administration is focused on a reinvigoration of America’s coal industry.

On Tuesday, the President signed a series of executive orders containing administrative actions which he believes will jump start that process.

Key Actions In Trump’s Coal Orders

The executive orders signed Tuesday by President Trump include a series of specific directives designed to stimulate more mining of coal, extend the life of existing coal-fired power plants, and study the feasibility of permitting the building of additional coal generation capacity in the future:

• Lifting Barriers to Coal Mining: The Interior Department, led by Secretary Doug Burgum, is instructed to end the Obama-era moratorium on coal leasing, opening millions of acres of federal land for extraction and prioritizing leasing processes.
• Repealing Regulations: Federal agencies are directed to repeal regulations perceived as discriminatory against coal, such as those limiting carbon emissions, mercury pollution, and wastewater runoff from coal plants.
• Emergency Powers for Plants: Trump invoked emergency powers under the Defense Production Act to prevent the closure of aging coal-fired power plants, arguing they are critical for meeting rising electricity needs.
• Promoting Coal for AI and Exports: The orders encourage using coal to power AI data centers and promote coal exports, positioning it as a strategic resource for domestic and international markets.
• Challenging State Policies: The Justice Department is tasked with identifying and fighting state-level climate policies that phase out fossil fuels, protecting coal miners’ interests.
• Financial Support: $200 billion is made available through the Energy Department’s loan programs to support coal technologies, such as those for building materials and batteries.

These actions aim to designate coal as a “mineral” under Trump’s prior executive order 14241 from March 2025. That order established a series of actions designed to stimulate domestic production and processing of minerals considered to be “critical energy minerals” as defined by 30 U.S.C. 1606(a)(3), as well as uranium, copper, potash, gold, and any other element, compound or material as determined by the Chair of the National Energy Dominance Council (NEDC) chaired by Interior Secretary Doug Burgum.

Tuesday’s actions specifically direct Sec. Wright to assess whether coal used in steel production qualifies as a “critical material” or “critical mineral.” This step ties into Trump’s efforts to reshore manufacturing, including heavy industries like steelmaking, to the U.S. in the coming years.

Equally impactful is the directive ordering the Council on Environmental Quality (CEQ) to assist agencies in adopting coal-related categorical exclusions under the National Energy Policy Act (NEPA). The environmental impact studies required by NEPA can delay projects related to any form of energy production for years as companies and regulators haggle over minute details and anti-development NGOs seize on any conflicts as fodder for time-consuming lawsuits.

The Bottom Line On Trump’s Coal Orders

The administration argues that coal is essential for energy independence, job creation, and economic competitiveness. Trump claimed during the signing event that U.S. coal reserves are worth “trillions of dollars,” far exceeding the value of gold in Fort Knox, and can lower energy costs while supporting hundreds of thousands of jobs.

The orders also tie coal to national security, particularly in powering AI data centers, where rivals like China rely heavily on coal-based electricity. Interestingly the immediate market reaction was positive, with shares of coal producers like Peabody Energy and Core Natural Resources rising about 9% each after the announcement.

But the feasibility and broader implications of this effort to expand the use of coal in U.S. society is certain to become the subject of intense debate, given market realities, environmental stakes, and a rapidly shifting energy landscape.