- A U.S. House-passed FY2026 appropriations bill (H.R. 6938) would repurpose IIJA money meant for abandoned mine reclamation and orphan well/methane programs, putting Pennsylvania at risk of losing over $200 million.
- The bill would transfer $353.5 million from the Abandoned Mine Reclamation Fund and $285 million from the Methane Reduction Infrastructure account to wildfire and Forest Service needs.
- Pennsylvania, which receives about $245 million annually from AML, could see its share cut by roughly $130–$175 million, disrupting reclamation, watershed restoration, public safety work, and well-plugging progress.
- The measure still must clear the Senate, but the uncertainty is already pressuring contractors and communities and driving urgent engagement with federal lawmakers.
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The appropriations bill passed by the U.S. House—H.R. 6938, known as the Commerce–Justice–Science; Energy and Water Development; and Interior and Environment Appropriations Act, 2026—includes a provision that would repurpose funding originally allocated through the Infrastructure Investment and Jobs Act (IIJA) for abandoned mine reclamation and orphan well/methane infrastructure toward wildfire management and Forest Service operations. Specifically, the bill seeks to transfer roughly $353.5 million from unobligated balances in the Abandoned Mine Reclamation Fund and $285 million from the Methane Reduction Infrastructure account.
Pennsylvania, which has long received around $245 million under the AML program in recent years (making up about one third of the nationwide fund under IIJA), stands to lose somewhere between $130 and $175 million if the proposed percentages of cuts are applied. These reductions pose multiple operational and environmental risks: disruption of ongoing reclamation projects (e.g., mine drainage treatment, stream restoration, waste pile removal, slope stabilization); delays or cessation of orphan well plugging efforts (key for reducing methane emissions tied to climate goals); and adverse effects on public health where subsidence or pollution remains unaddressed.
The timing of the proposal compounds risk. Some AML funding was temporarily frozen under the prior administration, and although legal and advocacy efforts (including by Pennsylvania’s Governor Shapiro) have resulted in unfreezing, this new budget uncertainty is creating instability for contractors, nonprofit reclaimers, and affected communities. Many AML projects require upfront costs and reimbursement schedules; delays or funding shortfalls can trigger downstream cost overruns and project cancellations.
Strategically, Pennsylvania and similar states must weigh several levers: engaging with Senate appropriators (since the House bill must pass Senate and be signed into law to take effect); examining state-level contingency funding for critical AML priorities; re-assessing project pipelines to prioritize highest-risk sites; and building coalitions with environmental, labor, and rural stakeholders to pressure federal decision-makers. For businesses and local governments reliant on AML and well plugging contracts, there is a need to reassess exposure, particularly for those with cash flow dependent on federal reimbursements.
Open questions remain: what the Senate version will propose; whether the transfers will be permitted under existing statutory obligations (AML program rules under the Surface Mining Control and Reclamation Act, and IIJA funding commitments); and to what extent state governments can challenge or mitigate the proposed reallocation through legal, political, or administrative means. Monitoring regulatory risk and funding certainty is essential.
Supporting Notes
- H.R. 6938 was passed by the U.S. House and is in the Senate for consideration; it includes language transferring $353,514,000 from the Abandoned Mine Reclamation Fund and $285,000,000 from the Methane Reduction Infrastructure account.
- Pennsylvania received about $245 million in FY 2025 from the AML program—roughly 34 percent of a $725 million national allocation from the IIJA.
- If Pennsylvania receives proportionate cuts under the bill, its AML funding could drop by $130–$175 million.
- The AML program funds critical environmental and safety work, such as treating acid mine drainage, removing spoil piles, restoring streams, and mitigating mine subsidence—which pose risks to public health and ecosystems.
- Pennsylvania’s orphaned well plugging program has made historic gains under Governor Shapiro, with over $76 million secured recently to plug more than 250 orphaned or abandoned wells, and DEP aiming to plug hundreds to thousands over next few years via IIJA‐funded formula grants.
- Legal challenges and advocacy have already paused funding freezes; however, the unpredictability caused by federal budget uncertainty is undermining confidence and creating risk for long-lead AML and reclamation contractors.