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Kentucky’s abandoned mine land (AML) reclamation market has nearly quadrupled since the disbursement of federal funding from the 2021 Bipartisan Infrastructure Law (BIL). This funding has boosted good-paying job opportunities in struggling labor markets and supported the restoration of polluting, hazardous coal mine damage. This report highlights the need for continued AML reclamation funding, more bidders on large contracts in East Kentucky, and greater growth in union density.
Kentucky has some of the highest levels of unreclaimed mine damage in the country. The BIL set aside more than $1 billion for mine cleanup in Kentucky over 15 years. Since then, the number and size of cleanup contracts have jumped, especially in East Kentucky, where mining damage is more heavily concentrated.
“Cleaning up abandoned mine lands is a win-win-win for Kentucky communities, job-creating local construction firms, and the environment,” author and Senior Researcher Eric Dixon explains. “The funding is working. But there’s still a big opportunity to create more good-paying local union jobs and make sure this money goes as far as possible.”
“Repairing the Damage in Kentucky: How The Market To Reclaim Abandoned Mines Is Changing Since Passage Of The BIL” traces how the influx of federal funding in January 2023 has shaped the reclamation market in following years, using the three-year “pre-BIL” period as a baseline.
Key findings
More—and larger—reclamation projects
- Total contract value per year grew from $5.8 million (2020–2022) to $26.7 million (2023–2025)
- Average contract size nearly tripled
- More large-scale projects are moving forward
Most firms are based in Kentucky and in counties with AMLs
- Nine-tenths of the total value of AML contracts went to firms based in Kentucky
- About four-fifths went to firms based in counties with AML damage
- Both of these figures are strong, but down slightly from before the BIL
AML spending supports around 450 to 550 direct job-years in Kentucky
- Around a quarter of those are in the design and administration of projects—many of which are salaried jobs with the state government
- Around three-quarters are in private construction—many of which are buildings trades jobs that don’t require a college degree and pay good wages
Union density grew, but was volatile year-to-year
- Union contractor density went from 0% (2020-2022) to an average of 4.8% in the BIL era (2023-2025)
- Density was volatile by year, dropping from 12% in 2024 back to 0% in 2025
- Density was lower in East Kentucky, showing room for improvement
- Federal prevailing wage rules are likely helping level the playing field for union contractors, though that level playing field depends on strong implementation to ensure Davis-Bacon regulations are followed
Healthy market competition– with room for improvement
- Contracts average 3.5 bids, higher than for Kentucky road projects
- Average market share of winning firms—and of the top 3 winning firms—fell
- Large contracts, especially in East Kentucky, could benefit from more bids
East KY and West KY are distinct markets
- Total value of contracts is larger in East KY
- Growth is faster in West Kentucky, where activity was limited before the BIL
- No firm won a contract in both regions
- Perry, Letcher, and Pike Counties in East KY and Hopkins County in West KY had the most projects
Churn in the AML market—but many of the same firms remain successful
- A group of 11 firms won the majority of contract value both before and after the BIL
- Some firms exited the market in the BIL era, but even more entered the market