Advisory Group Calls for Federal Financing to Support New and Existing Coal Plants

A federal advisory council reinstated by the Trump administration has formally recommended that the U.S. Department of Energy (DOE) provide significant financial support to bolster the nation's coal-powered electricity generation. The National Coal Council, whose members include executives from major coal producers, presented a series of proposals on Tuesday aimed at supporting both existing plants and the development of new facilities.

A Push for Financial and Regulatory Support

At a meeting in Washington, the council outlined 19 key recommendations for the administration. The central proposals call for direct government intervention to improve the economic viability of coal power.

Key financial recommendations include:

• DOE-backed loan guarantees and grants for existing and new coal plants.
• Federal government commitments to power purchase agreements.
• Increased public investment in coal-related infrastructure and supply chains.

The council also urged the administration to identify and remove regulatory and financial barriers that hinder the construction of new coal-fired power plants.

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Policy and Market Context

President Donald Trump reinstated the National Coal Council last year after it was inactive during the previous administration. The council's membership includes leaders from prominent companies such as Peabody Energy, Warrior Met Coal, and Core Natural Resources. The push for federal financing marks a significant potential shift for the DOE's loan office, which under Democratic administrations was primarily used to fund renewable energy projects like solar, wind, and electric vehicles.

The recommendations come as coal's role in the U.S. energy mix has seen a slight rebound. Coal generated approximately 17% of U.S. electricity in 2025, a minor increase from the prior year. U.S. coal production also rose by about 3% last year to roughly 528 million tons, driven by higher power demand and natural gas prices. The DOE did not immediately comment on the council's proposals.

Broader Deregulation Efforts

Beyond direct financing, the council's report advocates for broader deregulation. It called on the Environmental Protection Agency (EPA) to finalize the repeal of greenhouse gas regulations for both new and existing coal plants. The group also recommended that the Department of the Interior move to streamline the process for federal coal leasing, further signaling a coordinated effort to reverse policies from previous administrations.