Trump’s coal revival efforts face economic reality as industry struggles despite federal support

The Trump administration’s aggressive push to revive America’s struggling coal industry has produced mixed results, with federal interventions temporarily slowing plant closures but failing to address the sector’s fundamental economic challenges. In 2025, coal consumption jumped 13% after years of decline, largely due to Department of Energy emergency orders that delayed the retirement of aging power plants and surging electricity demand from AI data centers.

Energy Secretary Chris Wright has issued repeated emergency orders to keep coal plants operating past their planned closure dates, despite criticism from energy experts who argue these interventions are economically unjustified. The administration has simultaneously rolled back environmental regulations and opened millions of acres of public land for mining as part of its “Unleashing American Energy” agenda. However, analysts estimate these measures could cost ratepayers up to $12 billion through 2028 to subsidize plants that utilities neither wanted nor requested to keep running.

The coal industry’s challenges run deeper than regulatory hurdles. With over 200 aging coal plants nationwide becoming increasingly expensive to operate, natural gas and renewable energy sources continue to outcompete coal on cost. Mining employment remains at historic lows with just 40,000 workers—less than a quarter of 1980s levels. International demand is also weakening, with coal exports falling 14% in 2025 and China stopping imports of metallurgical coal from Appalachian mines.

While AI data centers have created new electricity demand that temporarily extends some coal plants’ lifespans, experts believe this represents a short-term reprieve rather than a lasting revival. As one energy analyst noted, when an industry requires government intervention to remain competitive, it signals fundamental market weakness that policy alone cannot overcome.