Trump Administration Directly Funds Coal While Paying Developers to Cancel Offshore Wind Leases

Since March 2026, the Department of the Interior has paid $2.7 billion to energy companies to abandon eight offshore wind leases and invest in fossil-fuel power. The first agreement, announced in March with French firm TotalEnergies, was followed by a deal with Duke Energy in late April. Concurrently, the Department of Energy allocated $1.125 billion to extend the life of coal-fired plants, including $625 million for plant modernization, $350 million for rural coal projects, $175 million for plant extensions, and $50 million for wastewater upgrades. Additional funding includes up to $500 million from the Defense Production Act for 13 coal plants and a $3.6 million grant to refurbish nine plants.

The Guardian

The administration also reduced the federal royalty rate on coal from 12.5 % to 7 % under the One Big Beautiful Bill Act, a change Wyoming estimates will cost the state $50 million annually. In October 2026 the government held its largest coal leasing sale in over a decade; the sole bid was one-tenth of a penny per ton and was rejected.

The Guardian

Energy Department spokesperson Ben Dietderich said the administration is “proud” of its coal-boosting efforts, arguing that prior “green energy subsidies” caused “premature shutdown” of fossil-fuel plants and higher electricity prices. White House spokesperson Taylor Rogers asserted that the government is not spending taxpayer dollars on the deals, describing the payments as a “return” of bid amounts to companies that will now fund “affordable, reliable, and secure energy” for American families.

The Guardian

Critics contend the spending raises consumer bills and harms public health. Former Washington governor Jay Inslee warned that the actions “force higher power bills” and “fatten the wallets of his cronies.” Jenny Rowland-Shea of the Center for American Progress called the offshore-wind payments “a snuff-out of an entire form of energy” and said forcing coal to stay afloat is “not a good economic decision for taxpayers.” Gabrielle Levy of Climate Action Campaign noted that 99 % of domestic coal plants cost more to run than renewable replacements.

The Guardian

• “He’s forcing higher power bills on them by blocking clean energy, then he’s fattening the wallets of his cronies – all with billions of our tax dollars.” — Jay Inslee, former governor of Washington

The Guardian

• “They are trying to snuff out an entire form of energy,” — Jenny Rowland-Shea, senior director for conservation policy, Center for American Progress

The Guardian

• “Coal has largely died because of economics, and so forcing it to of stay afloat is not a good energy decision, and not a good economic decision for taxpayers,” — Jenny Rowland-Shea

The Guardian

• “Even though the bid was ultimately rejected, the failure of this coal sale demonstrates the Trump administration’s willingness to use significant resources to subsidize a dying industry,” — Jenny Rowland-Shea

The Guardian

• “We pay more, Republicans rubber-stamp it, and Trump’s donors walk off with the bag,” — Jay Inslee

The Guardian