Antitrust litigation against major asset managers has created a potential roadblock for President Trump’s clean coal revival plan, with a recent legal action led by Texas and 10 other Republican state attorneys general. The lawsuit accuses Vanguard, BlackRock, and State Street of pressuring coal companies like Peabody Energy and Arch Resources to cut production, which could drive up energy costs for consumers. If the lawsuit succeeds, the firms would be forced to divest over $18 billion in coal holdings, directly threatening Trump’s vision for revitalizing the U.S. coal industry. The litigation, which frames the issue as ESG-driven, has raised concerns about its impact on the energy sector despite the industry’s historical decline due to factors like abundant natural gas and renewable energy advancements. The lawsuit has already triggered market reactions, with coal company shares declining despite broader market gains.
President Trump’s April 2025 executive order aimed to boost coal by lifting barriers, reclassifying it as a critical mineral, and promoting cleaner technologies. However, the new lawsuit risks strangling the funds needed to modernize the industry, ultimately leading to higher costs and reduced supplies. Critics argue that the decline in coal is largely due to market forces and regulatory actions rather than investment from asset managers, who hold minority stakes in these companies. The legal battle has drawn attention to how policy clashes can create unintended consequences for Trump’s energy goals, highlighting the need for coordinated strategies to support the coal industry without stifling market mechanisms, despite the overall market’s upward trend.