Federal officials took the first step Monday toward reopening vast areas of public lands in Montana and Wyoming to new coal sales, marking a sharp reversal from the Biden administration's climate-focused energy policies. The Interior Department announced it would consider selling leases for coal mining on more than 2,600 square miles of federal lands in the Powder River Basin, an area larger than Delaware.
The proposal represents the Trump administration's latest effort to expand fossil fuel production from publicly owned lands, following an executive order signed on the president's first day in office directing agencies to prioritize coal extraction.
The Bureau of Land Management said it would amend resource management plans to allow new coal leasing in the region, which spans northeastern Wyoming and southeastern Montana1. The announcement follows a budget reconciliation bill signed by Trump last week that reduced coal royalty payments from 12.5% to 7% for companies mining on public lands and mandated making available 6,250 square miles for leasing2.
A BLM spokesperson said Monday's announcement was preliminary and could change after a public comment period, declining to specify how much interest is expected from mining companies or how quickly new mines could open2.
The move directly contradicts the Biden administration's 2024 decision to end new coal leasing in the Powder River Basin, which produces about 40% of total U.S. coal1. The Bureau of Land Management had selected a "no future coal leasing alternative" in its resource management plans, citing climate change concerns and declining coal demand2.
Montana and Wyoming subsequently sued to block the Biden decision, with the Northern Cheyenne Tribe and conservation groups intervening to defend it3. The region has experienced steep production declines since peaking in 2008, with numerous company bankruptcies and mine closures2.
Environmental groups criticized the announcement. "The administration is pursuing yet another unwarranted coal giveaway by moving to reopen the Powder River Basin to new coal leasing," said Jenny Harbine, managing attorney for Earthjustice's Northern Rockies Office1.
Wyoming Sen. John Barrasso praised earlier Trump coal initiatives, calling coal "rocket fuel for the American economy" and declaring "Coal is making a comeback"2. However, conservation groups argued the measures ignore market realities favoring renewable energy sources2.
The dispute reflects broader tensions over federal land use as the coal industry struggles against competition from natural gas and renewables, which contributed to coal production declining to less than half of its 2008 peak3.
