Even with significant federal support and executive orders from the Trump administration, the US coal industry has continued its long-term decline. No new coal plants are currently under construction in the US, as utilities prioritize more cost-effective and efficient power sources such as renewables, batteries, natural gas, and nuclear power. This trend indicates that sustained growth for the US coal sector in the near to medium term is unlikely, as global energy systems shift towards cleaner power supplies. In fact, six times more coal power plants have been retired than constructed.
While the Trump administration has used emergency powers and taxpayer money to prevent some coal plants from closing and extend the lives of others, these efforts have resulted in higher ratepayer bills and are seen as misallocations of funds. For instance, keeping one Michigan plant open for about seven months cost $135 million. Despite these interventions, the US has seen a larger decline in coal power capacity during Trump's terms (57 gigawatts) compared to Obama's (48 gigawatts) and Biden's (41 gigawatts).
The primary driver for coal's decline is the economic advantage of natural gas, which is cheaper, more energy-dense, and easier to transport. The cost of power from a new coal plant is estimated at approximately $115 per megawatt-hour (MWh), significantly higher than about $64/MWh for a comparable gas facility. This disparity provides little incentive for utilities to choose coal. Additionally, older coal plants face even worse economics due to age, maintenance, and inefficiency, making government subsidies merely prolong their operation without addressing underlying economic obsolescence.
Market forces, particularly booming natural gas production from oil drilling in regions like the Permian Basin, have undercut coal prices and reshaped the US power mix more effectively than federal policy. In 2025, clean energy constituted 96% of new electricity generation capacity added to the US grid, with no new capacity coming from coal. Coal's share of US electricity generation has fallen dramatically from nearly 60% in 2000 to about 16% in 2025, largely due to these market dynamics rather than environmental regulations alone. Taxpayers are left supporting an uncompetitive industry while power costs increase.
