The RECLAIM Act was preceded by and amends the SMCRA, which was enacted in 1977 to decrease the amount of coal dust in downstream water resources and other mining operations that are harmful to wildlife.^[4] Shortly after SMCRA was established, the United States Department of Interior created the Office of Surface Mining Reclamation and Enforcement (OSMRE) agency to enforce the law. OSMRE's purview includes protecting wildlife, restoring abandoned mines, and making sure the regulations for surface coal mining are complied with.^[5]

In addition, the agency has been charged with the administration of Abandoned Mine Land (AML) Reclamation Fund. Under the RECLAIM Act, extra AML funds will be disbursed over the next five years, giving up to $1 billion to help clean up and restore abandoned mines and foster economic development.^[6]

Section 416 amends the SMCRA by adding a section at the end of the bill that appropriates $200,000,000 for five fiscal years. This money is to be used by U.S. states and Indian tribes to "promote economic revitalization, diversification, and development in economically distressed mining communities through the reclamation and restoration of land and water resources adversely affected by coal mining carried out before August 3, 1977." The appropriated funds can only be used for certain priority projects. The project must meet the requirements of sections 403(a)^[7] (of 30 USC 1233^[8]) and 416(c) of the RECLAIM Act. Section 416(c) states that upon completion of the project, the reclamation should have created conditions for favorable development or conditions for the general welfare through development of communities. This section of the bill, the appropriations section, states that 30 percent of funds can be used for acid mine drainage treatment, 10 percent for project planning and administration and no more than 50 percent can be used for abandoned mine lands reclamation and restoration.

The money is divided among states by a formula, with 80% weight on the amount of coal mined from each State or Indian tribe before August 3, 1977, and 20% weight on reclamation fees paid from 2012 through 2016.^[9] The RECLAIM Act's stated goal is to help "economically distressed mining communities... adversely affected by coal mining carried out before August 3, 1977," and much of the targeted support goes to Kentucky, Illinois, Pennsylvania and West Virginia..

The bill has generated support from a broad coalition of interests groups, such as Appalachian grassroots organizations,^[10][11] religious organizations,^[12] and environmentalist groups.^[13] The organizations argue that the bill will revitalize the economies of communities that were traditionally reliant upon coal mining. Polling in Eastern Kentucky suggests that Appalachian support for the bill is not limited to lobbying groups, approximately 89% of voters support this bill.^[14]

Industry groups have lobbied against the bill, arguing that the Abandoned Mines Lands (AML) funds should not be diverted from their original purpose.^[15][16] The National Mining Association has stated broader opposition to the administration of AML funds.^[17]

The Heritage Foundation argues it is a poor use of money, deregulation would be better, and the AML fees should be allowed to expire at the end of 2021.^[18]