Trump’s ‘Big Beautiful Bill’ Could Cost Wyoming $50M a Year in Coal Royalties, Say State Forecasters

Wyoming might be stuck footing a hefty tab thanks to a new federal law aimed at boosting coal production. According to state budget experts, the Trump-backed “Big Beautiful Bill” could leave the Cowboy State short $50 million a year in coal royalty revenue, Oil City News reports.

The bill, signed into law by former President Donald Trump last month, slashed the federal royalty rate for coal from 12.5% to 7% — a move cheered on by coal industry allies and Wyoming’s federal delegation. But state financial forecasters aren’t exactly throwing a party.

In a July update, Wyoming’s Consensus Revenue Estimating Group (CREG) projected the royalty cut would carve out about $50 million in annual revenue, depending on production levels. That’s a big chunk of money the state uses to fund schools, roads, towns, and the University of Wyoming.

Companies that pull coal from federal land pay royalties to the federal government, which then splits the money 50/50 with states like Wyoming. That split helps fund a wide range of public services, especially in energy-heavy states.

While the Big Beautiful Bill also lowered royalty rates for oil and gas, those changes only apply to new production, so the impact on Wyoming’s revenue is relatively minor.

Sen. John Barrasso (R-WY) called the bill a win for Wyoming and US energy producers.

“This law empowers states to produce more energy. It cuts red tape and creates opportunities,” Barrasso said on the Senate floor.

But state forecasters say even if production ticks up, it won’t be enough to make up for the revenue loss.

“This reduced revenue will be modestly offset by higher severance and ad valorem payments,” the CREG report noted. “However, this offset is small compared to the reduced federal mineral royalties.”

Yes, $50 million is only a sliver of Wyoming’s projected $1.4 billion operating fund for fiscal year 2025. And thanks to smart investing, 40% of that budget now comes from interest income, according to Sen. Mike Gierau (D-Jackson).

But he still thinks the royalty cut deserves more public attention.

“We’re going to get left holding the bag and the bill,” Gierau said. “And no one’s really talking about it.”

He added that lower royalty rates won’t magically reverse coal’s decline, which continues to face economic and environmental headwinds.

So far, Wyoming’s Joint Appropriations Committee Chairman Rep. John Bear (R-Gillette) hasn’t weighed in, and state lawmakers are likely to keep an eye on whether increased production actually happens — or if this turns into another budget hole for Wyoming to patch.

For now, it’s clear the “beautiful” part of the Big Beautiful Bill might not extend to state coffers.