Coal sector urges Trump admin to provide financing for existing, new power plants

• The council recommended DOE grants and loans for coal plants and supply chains, federal power purchase agreements, and removal of regulatory barriers to new plant construction
• U.S. coal production rose 3% in 2024 to about 528 million tons, with coal generating approximately 17% of U.S. electricity in 2025, up slightly from the prior year
• The council also called for EPA to finalize repeal of greenhouse gas regulations for coal plants and streamline federal coal leasing through the Department of the Interior

Summary: Coal Sector Seeks Trump Administration Financing for Power Plants

The National Coal Council, reinstated by President Trump in 2024 after lapsing under Biden, has urged the U.S. Department of Energy to provide financial support for existing and new coal-fired power plants. The council, which includes executives from Peabody Energy, Warrior Met Coal, and Core Natural Resources, presented 19 recommendations at a Washington meeting on July 21.

Key Recommendations:

• DOE loan guarantees and grants for coal plants and supply chains
• Federal power purchase agreements
• Investments in coal infrastructure
• Removal of regulatory and financial barriers to new plant construction
• EPA finalization of greenhouse gas regulation repeals
• Streamlined federal coal leasing through the Department of Interior

Market Context:

U.S. coal production increased approximately 3% in 2024 to 528 million tons, driven by higher power demand and elevated natural gas prices. Coal currently generates about 17% of U.S. electricity as of 2025, up slightly year-over-year.

Sector Implications:

The recommendations target the DOE's loan office, recently renamed the Office of Energy Dominance Financing, which Democratic administrations previously used primarily for renewable energy projects (solar, wind), electric vehicles, and transmission infrastructure. The shift would mark a significant policy reversal, redirecting federal financing toward fossil fuel infrastructure.

The DOE has not yet responded to the council's financing requests. If implemented, these measures could provide substantial support to the struggling coal industry, though they would face scrutiny given climate commitments and the ongoing energy transition. The proposals signal the Trump administration's continued commitment to bolstering domestic coal production despite broader market trends favoring cleaner energy sources.