Wyoming braces for budget hit from Trump’s coal royalty cut

By Adam Aton | 08/08/2025 06:12 AM EDT

The president’s signature legislation slashes nearly in half the royalty rates for new and existing coal leases.

A truck hauls coal at Contura Energy's Eagle Butte mine near Gillette, Wyoming, on March 28, 2017.

A truck hauls coal at Contura Energy's Eagle Butte mine near Gillette, Wyoming, on March 28, 2017. Mead Gruver/AP

Wyoming expects to collect $50 million less each year from coal mined on federal lands after President Donald Trump’s signature legislation lowered royalty rates.

That’s the official estimate from the state’s Consensus Revenue Estimating Group, which produces fiscal forecasts lawmakers use to write the state budget.

The findings, first reported by WyoFile, offer an early indication of how Trump’s domestic policy law will affect state budgets. Wyoming is one of the biggest recipients of federal royalty payments — especially for coal.

Advertisement

Trump’s One Big Beautiful Bill Act lowered the federal mineral royalty rate on new and existing coal leases to 7 percent from 12.5 percent. It also lowered onshore oil and gas royalties to 12.5 percent from 16.67, though only for new production.

GET FULL ACCESS