$625 Million Federal Funding Injection Aims to Keep Coal Industry Burning Bright
October 6, 2025 - The Trump administration recently announced a pair of initiatives to boost the U.S. coal industry and increase coal production.
The U.S. Department of the Interior said it would open 13.1 million acres of federal land for coal leasing, and the U.S. Energy Department announced a sizable investment meant to keep coal plants operating past planned retirement dates.
Secretary of the Interior Doug Burgum said opening additional lands for coal uses is part of fulfilling President Donald Trump’s goal for “American Energy Dominance.”
“President Trump promised to put American energy workers first, and today we’re delivering,” Burgum said. “By reducing the royalty rate for coal, increasing coal acres available for leasing and unlocking critical minerals from mine waste, we are strengthening our economy, protecting national security and ensuring that communities from Montana to Alabama benefit from good-paying jobs.”
“Washington doesn’t build prosperity, American workers and entrepreneurs do, and we’re giving them the tools to succeed,” Burgum said.
Burgum
U.S. Energy Secretary Chris Wright announced a $625 million investment to “expand and reinvigorate” the nation’s coal industry Monday morning during an appearance on Fox Business.
“We’re announcing today expanded programs to help the American coal industry,” he said. “And we’re helping it because just for years it’s been under assault.”
The funds will be used to boost coal production and delay the retirement of coal plants, Wright said.
“We’re going to let the private marketplace, investors and capital deployers decide exactly what they’re going to build,” he said. “We’re just going to assist some of those efforts and stop with the heavy hands on the scale.”
Sen. Jim Justice, R-W.Va., issued a statement applauding Wright’s announcement.
“President Trump and Secretary Chris Wright are right on the money with investments like this in the coal industry,” Justice said. “I’ve said for a long time that we are going to face an energy crisis of massive proportions, having to choose between powering our homes or powering industry unless we act. This is smart policy in action. I’m proud of what we are getting done here with regard to energy because this $625 million investment is a massive win for our miners, our families and America’s energy independence.”
Wright’s plans to help prevent the closure of coal-fired power facilities echoes a component of Gov. Patrick Morrisey’s recently announced “50 by ’50” energy expansion initiative.
“I commend President Donald Trump and Secretary of Energy Chris Wright for backing West Virginia’s coal industry and supporting our ‘50 by 50’ policy — which will rely heavily on coal and gas to empower our state to take the lead in securing America’s energy future and advance our position against China in the data and AI arms race,” said Morrisey in a statement Monday.
The $625 million in federal energy investments includes $350 million to modernize existing coal plants; $175 million for coal projects in rural communities that are expected to bring cheaper, more reliable energy; $50 million to upgrade wastewater management systems, extending the lifespan of coal plants and reducing operating costs; $25 million to enable coal power plants to operate on dual fuel; and $25 million to support investments that will maintain boiler efficiency and reliability when utilizing 100% natural gas, according to Morrisey.
“By upgrading our existing coal-fired power plants to run cleaner and more efficiently, we can lower energy prices for consumers and build the generating capacity we need to compete with China, all while supporting the hardworking West Virginians who work in our coal and gas industries,” the governor said.
The announcement represents the administration’s “steadfast commitment to America’s coal industry and energy security,” said Chris Hamilton, president and CEO of the West Virginia Coal Association.
“The planned expansion of federal land leases and updated royalty policies will help ensure a stable future for miners and their families, while essential federal investments in both maintaining and building coal-fired generation safeguard our grid, grow domestic manufacturing and protect America against outages and adversaries,” Hamilton said. “We look forward to working in partnership to advance these historic policies, protect good jobs and foster a future where West Virginia coal continues to energize our country and strengthen American prosperity.”
There are nine coal-fired power plants in West Virginia: Pleasants Power Station, Harrison Power Station, Mountaineer Power, John Amos, Mount Storm, Morgantown Energy Associates, Longview Power, Fort Martin Power Station and Mitchell Power.
The Longview Power Plant in Monongalia County, near Maidsville, is the newest coal-fired plant in the state, having gone into operation in 2011.
Many of the current plants, such as Mitchell, Amos and Mountaineer, were previously slated to close by 2028 but were granted permission by the West Virginia Public Service Commission to continue operating through 2040.