AGNC and Craig urge Congress: Let displaced coal workers access retirement without penalty

By Jen Schumann | Rocky Mountain Voice

They built the grid. Now they’re fined for surviving. Colorado coal workers plead for relief amid forced transition fallout.

In Craig, a coal worker with $60,000 in retirement savings could lose $6,000 of it overnight—just for trying to survive after losing his job. That’s the reality hundreds of families are facing in Northwest Colorado, where coal plants and mines are shutting down years ahead of schedule and federal tax law is punishing livelihoods already in freefall.

Now, the Associated Governments of Northwest Colorado (AGNC) and the City of Craig are calling on Congress to change that. The two entities are urging passage of the Energy Worker Penalty Waiver Act, a federal bill that would exempt displaced coal workers from the standard 10 percent IRS penalty that applies when withdrawing from retirement accounts before age 59½.

“These are not early retirements – they are forced displacements,” said Tiffany Dickenson, Executive Director of AGNC. “We are asking Congress to remove the penalty and tax burden so coal community workers can access their own savings to protect their livelihoods and survive a transition they did not choose.”

Coal closures hit hard—and ahead of schedule

Craig Station’s Unit 1 will shut down at the end of this year, with Units 2 and 3 scheduled to follow by 2028. The Trapper and Colowyo mines that feed the plant are also winding down, with job losses accelerating as coal demand declines.

By 2028, the region is expected to lose roughly 800 direct energy jobs and more than 2,000 total livelihoods. 

According to economic modeling by Colorado Mesa University, 2025 alone is projected to bring over $400 million in lost wages. That loss represents nearly one-fifth of the region’s entire gross product. In Moffat County alone, coal accounts for 47 percent of local GDP.

For many workers, there’s no other safety net.

“While some miners may be close to retirement, others are stuck in the middle—too young to retire but too old to start over,” said Shannon Scott, Economic Development Manager for the City of Craig. “This is about fairness, not subsidies. These workers built our energy economy. Now, during transition, they deserve access to their own resources, without the government taking another cut.”

A fix modeled on past relief

During the pandemic, the IRS confirmed that individuals affected by COVID-19 could withdraw up to $100,000 from retirement accounts without paying the 10 percent penalty—regardless of industry or job title. The exemption, outlined by both the IRS and Consumer Financial Protection Bureau, served as a lifeline during a moment of mass displacement.

That’s the model AGNC wants to revive—narrow, targeted relief with no new government programs or agencies.

“This proposal offers a narrow, fiscally responsible exemption… for workers displaced by mandated coal closures—workers who are now relying on retirement savings as a lifeline,” the press release states.

A typical coal worker with $60,000 saved would be penalized $6,000 if they access it now—on top of income taxes. For families in transition, that could mean months of rent, utilities or retraining costs lost to IRS rules written for an entirely different era.

Political silence and mounting pressure

Despite the scale of the crisis, AGNC and the City of Craig have received no response. Although they’ve sent formal letters to Sens. Michael Bennet and John Hickenlooper, as well as Reps. Lauren Boebert, Jeff Hurd and Joe Neguse, none of Colorado’s federal lawmakers have publicly endorsed the penalty waiver as of July 25.

Sen. Bennet co-sponsored the American Energy Worker Opportunity Act (S.5034), a 2024 bill that proposed wage replacement, health coverage and education support for displaced fossil fuel workers—but the bill stopped short of addressing early retirement penalties—the very issue now at the heart of the Craig plea.

In a region staring down 3,000 affected livelihoods, local leaders say that’s not good enough.

“Cradle to grave” jobs, lost overnight

Richard Meisinger, business manager of IBEW Local 111, captured the emotional toll in a 2022 interview published by CBS News: “A power plant job, especially in a rural community like Craig—those are what I call cradle to grave jobs.”

Clint Malwitz, a former plant employee now launching an appliance business, shared his decision-making process with the Craig Press: “If I want to stay, I need to broaden the horizons. To stay in the valley, I need to make a decision on what’s going to be best for my family and community.”

He added, “The opportunity presented itself to become an entrepreneur, and we decided to jump in.”

What other states are doing—and what Colorado hasn’t

Other coal states like Kentucky, West Virginia and Wyoming have used federal grants to provide direct support to displaced miners. In Kentucky and West Virginia, eligible workers have received POWER Initiative funds for retraining and job placement. In West Virginia, that includes up to $5,000 in retraining assistance and a $20 per day stipend through the UMWA Career Centers. In 2017, Wyoming used a $2 million federal dislocated worker grant to retrain more than 140 laid-off coal employees.

Meanwhile, Craig coal workers have no similar federal exception to access their own retirement savings without penalty.

“While miners in other states receive support to start over, Colorado workers are being fined for surviving,” said a regional advocate.

A call to act—before winter hits

AGNC and Craig leaders have launched a statewide push, asking local governments, business groups and Colorado residents to sign on to their support letter at https://bit.ly/AGNCcoalworkerIRSrequest.

As Dickenson put it, “Providing displaced workers with penalty-free access to their earned retirement savings is a necessary and fair step toward a more just energy transition.”

The power grid may be changing—but the people who kept it running haven’t disappeared, and they haven’t given up.