The Department of Interior under the Trump administration announced Monday that it's opening more than 13 million acres of federal land for coal leases. The Department of Energy is also investing $625 million to modernize coal plants and jump-start U.S. mining.
Wyoming Energy Authority Director Rob Creager hosted several out-of-state legislators last week from states that accept Wyoming coal for tours of mines and power plants to see how Wyoming handles its coal industry.
One of the things they wondered about is whether coal reserves are running low.
“I was like, ‘No, just look West,’” Creager told Cowboy State Daily. “’(Coal) keeps going as far as you can see.’ And they were excited to hear that because, again, for their constituents, they want affordable and reliable power.”
Wyoming has plenty of coal to ship to America for that affordable reliable power, and overseas if export avenues open up. In fact, the Cowboy State already produces 40% of America’s thermal coal all by itself, making it the nation’s largest state producer.
Monday’s DOI announcement has lots of people in Wyoming excited, including Creager. That’s because no matter where that money gets spent, it likely means that more Wyoming coal will be heading out to market somewhere.
“What we’re wanting to do is get more Wyoming coal shipped out,” he said. “That’s another great thing about this announcement.
"The investments that the feds are making, obviously we want them in Wyoming, but even if it’s not, Wyoming sends its coal to half this country.”
Investments in coal plants elsewhere that keep them going, or investments that build new coal plants, or investments that help build out dual-fuel possibilities, can only help Wyoming in the long term, Creager said.
‘Win-Win-Win'
Wyoming Gov. Mark Gordon was in Washington, D.C., with Department of Interior Secretary Doug Burgum to announce the coal investment plan, along with both Wyoming Senators John Barrasso and Cynthia Lummis.
State Senate President Bo Biteman and Powder River Basin coal miners also were there for the event, which Gordon said is more than a big deal for Wyoming.
“Extending the life of coal-fired power plants is good for consumers, grid reliability, and coal communities,” Gordon said in a Monday statement. “Wyoming is poised for a win-win-win with these new policies. Our production is strong and will get stronger — at the same time as national and international consumers clamor for clean energy, our product best meets those needs.”
The statement says that this means Wyoming and other thermal coal-producing states “have the potential to better help meet the nation’s energy demand.”
The money and access to federal lands for coal leases are a good next step to build on provisions in the One Big Beautiful Bill, the governor said.
“Implementing key sections of the Big Beautiful Bill underscores the Trump administration’s drive to unleash American energy,” he said. “Putting these policies into play grants balanced federal land management and multi-use access, along with greater local decision-making.
"The president continues to take bold actions to reaffirm the reliability and affordability of clean coal for American energy security.”
Monday’s announcement is the latest good news for the U.S. coal industry, and Wyoming in particular, Gordon said.
“Today’s policy launch, along with the recent favorable Oakland export terminal decision, gives more definition to the promise of exporting Wyoming coal to international markets,” Governor Gordon said, regarding the California Supreme Court’s ruling that may clear a path for Wyoming coal exports to Asia.
Part Of A Bigger Coal Effort
The $625 million in funding is part of a more widely coordinated effort across federal agencies to save the U.S. coal industry.
The Environmental Protection Agency has simultaneously announced that it will repeal dozens of regulations that had been set by previous administrations to curb emissions, such as those for carbon dioxide and mercury levels.
The Department of the Interior will open 13.1 million more acres of federal land for coal mine leases at reduced royalty rates.
“The fact that this is a coordinated effort is key,” Creager said. “If we only had DOE funding certain things, then it could get hung up in some sort of regulatory piece.
"But the fact we have the permitting side, the EPA side, and the DOE all together, that really makes me excited to get some things moving as quickly as possible. Because like they said this morning, this is a race, and we’ve got to catch up.”
Data Centers Need Power
In announcing the funding for coal plants, U.S. Department of Energy Secretary Chris Wright said the nation needs more energy to secure its future with a boom in artificial intelligence data centers on the horizon.
Coal is a plentiful source to ensure there is enough power to go around for such centers, which many experts believe will become key to national security as well, he said.
“Beautiful, clean coal will be essential to powering America’s re-industrialization and winning the AI Race,” Wright said. “These funds will help keep our nation’s coal plants operating and will be vital to keeping electricity prices low and the lights on without interruption.
"Coal built the greatest industrial engine the world has ever known, and with President Trump’s leadership it will do so again.”
The $625 million Wright’s office announced will provide:
• $350 million for coal recommission and retrofits for projects that demonstrate readiness to modernize their coal units and provide near-term electric power reliability and capacity.
• $175 million for capacity and energy affordability projects in rural communities.
• $50 million to support development and implementation of advanced wastewater management systems that can help extend the service life and reduce operational costs for coal plants.
• $25 million for dual-firing retrofits so coal plants can seamlessly switch between fuels, providing economic flexibility.
• $25 million to test and develop natural gas co-firing systems.
Coal-burning plants were responsible for about 15% of American electricity last year, according to the Energy Information Administration.
That’s a 50% drop from where things were in 2000, as coal has been losing market share to rising natural gas output, as well as some solar and wind power growth.
Coal Jobs And Workforce Trends
Wyoming has 3,400 coal workers as of August 2025, all of whose jobs had been looking increasingly uncertain under previous administrations.
Creager said the state is coming out with a report Tuesday that will examine what’s been happening in the coal industry sector in detail.
“Coal workers have been down,” he said. “We’re hundreds of millions off of what our peak (coal) production was, but this year has been up a little bit from the last year, which is great.”
Nationwide, the coal workforce has dropped from 70,000 employees 10 years ago to about 40,000, according to the Federal Reserve Bank of St. Louis. Peak employment for the coal industry happened in the 1980s, with around 200,000 workers.
The announcements Monday cannot help but be heartening to Wyoming’s coal workers, said Wyoming Mining Association Executive Director Travis Deti.
“It’s very clear that the administration is serious about changing the direction of our energy policy and coal is going to be right there in the mix,” he said. “And putting the dollar signs to it — and expanding the areas where we want to develop some leasing and develop some more coal resources — that’s very positive for the industry.”
Coal leases are taking on average 11 years to complete, Deti added. So, any effort to streamline that process is highly welcome.
“That’s got to be addressed,” he said.
Wyoming Coal’s Competitive Advantage
Wyoming is particularly advantaged thanks to the low sulfur content of its Powder River Basin coal.
Gillette is the state’s coal capital and produces 97% or more of the Cowboy State’s coal. The PRB's low-sulfur coal burns cleaner than most other forms of coal.
Those deposits also are very near the surface, making them easy and cost-effective to mine.
That’s given the state a huge competitive advantage in the thermal coal sector for decades, and it’s putting it front and center in the Trump administration’s push to open up more acres to federal coal leases.
The Bureau of Land Management recently announced it would offer about 3,500 acres of federal coal reserves on Oct. 8 in Campbell and Converse counties, about 15 miles south of Wright.
The area lies within the West Antelope III LBA adjacent to the Antelope mine, and contains 441 million tons of in-place coal, or 365 million recoverable/mineable tons.
The acreage has two coal seams ranging in thickness from 33 to 44 feet thick, with a composite quality of 8,973 Btu per pound mass and sulfur content of 0.24%.
The fact that sales are already on the schedule just goes to show that demand really is there, Deti said.
“We’ve had some success here recently the One Big Beautiful Bill with adjusting the royalty rates to bring it more in line with today’s market,” he added. “So, I think … you are going to see companies realizing that (coal is) not off the table anymore. It’s not going to be illegal to lease coal.”
Powering Up The Future
Burgum said the moves by the Trump administration will help ensure American prosperity and secure energy jobs for the future.
“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 added that his office would be “streamlining approvals for projects in Montana, Wyoming, Tennessee and beyond.”
The Department of the Interior is also working with the U.S. Geological Survey and state partners to map out mine waste deposits where strategic resources might be recovered, including uranium, zinc, geranium, tellurium, and rare earth elements.
“I think they’re talking about coal ash from power plants there,” Deti said. “A lot of that is just buried in the ground. And what we’re seeing right now is some of that ash, that leftover material from power generation, might contain some of the critical minerals we need to break our dependence on the Chinese.
"So, I think that’s exciting. There’s a lot going on, and it’s good to see an administration taking these things seriously and actively working for (Wyoming) instead of against.”
Renée Jean can be reached at renee@cowboystatedaily.com.
