Wyoming's coal production is expected to hit its second-lowest level in history in 2025, just above 2024 levels, according to Wyoming Public Radio. Economists warn that this downtrend is likely to persist, posing a significant challenge to the state's economic outlook.

Despite efforts by the Trump administration to boost the coal sector, the state's coal output this year will remain around 200 million short tons. In contrast, Wyoming's 2008 coal output set a historical peak of 466 million short tons, more than doubling this year's figures.

In 2022, the coal industry contributed approximately $563 million in taxes, mining rights, and other fees, supporting around 12,000 jobs. A sharp decline in revenues may force the state to introduce tougher measures, such as raising income taxes or other levies.

Though the local government implemented several measures in past 16 years to reverse the decline such as lowering mining taxes, suing the federal government, exploring coal's non-power uses, and mandating studies into carbon capture technologies, these efforts had little effect.

Despite the Trump administration's promise to revive the coal sector through its "Unleashing American Energy" agenda by cutting taxes, loosening regulations, opening up federal land, and making substantial investments, the downtrend in production continued.

Industry experts pointed to rising operating costs at coal-fired power plants, the closure of outdated plants, and increasing maintenance costs as the core issues. Wyoming's Naughton plant, located outside Kemmerer, is scheduled to fully switch to natural gas by the new year.

With soaring maintenance costs for aging coal plants, power companies are opting to invest in natural gas and renewables rather than building new coal plants. By 2024, global renewable energy generation has surpassed coal power.

Federal coal leasing in Wyoming and Montana was also struggled. Despite strong governmental support for coal, market forces largely outweighed these efforts. Although new lands have been opened in the Powder River Basin for potential coal leasing, sales have yet to be scheduled, primarily due to lack of industry interest.