U.S. Interior Department Announces $119 Million in Grants for Coal Mine Reclamation Projects

The U.S. Interior Department on June 4 announced the availability of over $119 million in fiscal year 2025 abandoned mine land reclamation fee-based grants for eligible tribes and states. The announcement is in sync with U.S. President Donald Trump’s commitment to unleashing American energy and revitalizing the U.S. coal industry. AML reclamation assists with employment opportunities in coal communities by investing in projects that shut down hazardous mine shafts, enhance water quality by treating acid mine drainage, retrieve unstable slopes and restore water supplied negatively impacted by mining. Moreover, funding is expected to favour projects that provide employment opportunities to both current and former employees of the coal industry.

To reinvigorate the U.S. coal industry, President Trump has issued an executive order that directs federal agencies to identify coal resources on federal lands, remove barriers to coal mining, and prioritize coal leasing. Agencies are required to rescind policies that seek to transition the nation away from coal production or otherwise establish preferences against coal as a generation resource. Additionally, the order seeks to promote coal and coal technology exports and enable international offtake agreements for U.S. coal. It also pushes for the expansion of coal-based infrastructure to meet the electricity needs of artificial intelligence data centers.

The grants, approved under the Surface Mining Control and Reclamation Act of 1977 and allocated by the Office of Surface Mining Reclamation and Enforcement, support local economies, enhance public safety and assist coalfield communities repurpose earlier mine lands for new use. Grant funding is made up of fees collected on coal production and is based on a congressionally mandated formula linked to an individual state’s share of past and current coal production. Since 1977, the office has distributed over $8.6 billion in abandoned mine land fee-based grants to help tribes and states. For fiscal year 2025, 24 coal-producing states and two tribal programs are eligible for grants. A mandatory 5.7 percent sequestration applies to the total, leading to a final amount of $112.9 million.

The abandoned mine land grants highlight the federal government’s continual commitment to regions that drove U.S. industrial growth. Tribes and states create project proposals and supervise implementation, making sure solutions are tailored to local requirements.