The decline of the U.S. coal industry has deepened despite President Trump's push to revive it, a trend exacerbated by market realities rather than environmental regulations. Under Trump's administration, the U.S. saw a larger fall in coal-fired power capacity, specifically 57 gigawatts (GW), compared to 48 GW under Obama and 41 GW under Biden. Utilities continue to prioritize cheaper alternatives like renewables, batteries, gas, and nuclear power, leading to a ratio of six coal plant retirements for every new construction this century. Between 2000 and 2024, approximately 166,000 megawatts (MW) of outdated coal capacity were retired.
The energy market's shift is primarily driven by the economics of natural gas, which became more competitive with the boom in fracking technology. In May 2025, natural gas at the Henry Hub cost $25.45 per megawatt-hour, significantly lower than coal's $36.43 per megawatt-hour. This economic advantage has made natural gas the single largest source of U.S. electricity, generating 43.1% in 2023, while coal accounted for 16.2%. The U.S. Energy Information Administration (EIA) reported that U.S. coal production in 2023 was 578 million short tons, less than half of its 2008 peak.
Despite presidential efforts, market forces have proven more powerful. In 2025, clean energy constituted 96% of new electricity generation capacity in the U.S., with no new capacity coming from coal power. While surging power prices and increased demand from data centers did lead to a 13% rise in coal-power output year-on-year in 2025, this was only the second increase in a decade. The vast majority of U.S. coal plants are old, with three-quarters over 40 years old, and analysts anticipate a continued downward trend for coal in the grid, even if the rate of plant retirements slows.
