Despite Federal Support, Economic Forces Are Driving the Future of Coal

John L. Watson

Fri, January 2, 2026 astatine 7:16 AM CST 4 min read

The Trump medication during some its presumption has prioritized its efforts connected reviving the ember manufacture by introducing a bid of argumentation changes and enforcement actions intended to boost ember leasing and accumulation connected national lands. Yet, contempt these governmental moves, coal’s trajectory successful the U.S. vigor marketplace has followed a antithetic path, shaped much by economical realities than authorities intervention. Market forces, peculiarly the emergence of cheaper and cleaner vigor sources, proceed to undermine ember development. Coal erstwhile formed the backbone of American energy production, with its usage steadily rising. However, since peaking successful the aboriginal 2000s, coal-fired powerfulness has sharply declined. In 1950, ember was the ascendant root of energy crossed the grid, but by 2023, it accounted for lone 9% of the nation’s full vigor consumption. [caption id="attachment_246815" align="alignleft" width="239"]

John L. Watson[/caption] A caller manifestation of the malaise is that the national authorities rejected the caller “low-ball” bid from the sole bidder (Navajo Transitional Energy Co.) to get 167 cardinal tons of ember connected national nationalist lands successful Montana. The institution bid $186,000 (less than a penny per ton). The failed lease merchantability would person been the biggest national authorities ember merchantability successful much than a decade. The failed Montana ember lease merchantability vividly demonstrates the deficiency of involvement for ember among utilities generating energy passim the country. They are turning to cheaper earthy state and renewables. In spite of the administration’s involvement successful reviving the ember industry, economists accidental national attempts to boost ember are not going to reverse its years-long decline.

In its archetypal term, the Trump medication tried to reverse the ember policies of the Obama medication done assorted actions, including:

• Ending the Federal Coal Leasing Moratorium. A 2016 moratorium, which temporarily halted caller ember leases connected national lands to let for an biology review, was lifted successful March 2017. This Trump medication alteration reinstated the quality for companies to get caller leases.

• Rescinding New Valuation Rules. The U.S. Department of the Interior (DOI) repealed caller rules that calculated royalties for ember extracted from national onshore based connected the income price, alternatively than a little figure. This determination efficaciously reduced the outgo for mining companies to extract coal.

President Trump’s 2nd medication has continued and expanded the pro-coal policies of his archetypal term. In April 2025, Trump signed a bid of enforcement orders to boost the ember industry. These orders state that “coal is indispensable to our nationalist and economical security” and nonstop national agencies to instrumentality respective actions, specified as: