Utility Bills Surge as More Americans Fall Behind/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ A new analysis reveals a sharp rise in U.S. utility debt, signaling growing financial stress among consumers. Past due utility balances jumped nearly 10% as energy prices continue to rise. The trend poses political challenges for President Trump as affordability remains a top voter concern.
Utility Bill Crisis in America: Quick Looks
- Past due utility bills rose 9.7% year-over-year, hitting an average of $789.
- Monthly energy bills climbed 12% between Q2 2024 and Q2 2025.
- Nearly 6 million households face severe utility debt, with risk of collections.
- AI data centers may worsen electricity costs, adding to economic strain.
- Trump faces political backlash over affordability and rising living expenses.
- White House denies federal responsibility, blames state-level energy regulation.
- Advocacy groups link rising costs to poor oversight and weakened regulation.
- Utility debt rise coincides with growing delinquencies in auto and student loans.
Deep Look: Utility Bills Are Soaring, and More Americans Can’t Keep Up
WASHINGTON — As energy prices rise and more households fall behind on payments, a new analysis by The Century Foundation and Protect Borrowers reveals that millions of Americans are slipping deeper into utility debt — a development that reflects increasing financial pressure and signals potential risk to the broader U.S. economy.
From April to June 2025, past due balances on electricity and gas bills jumped 9.7% year-over-year, reaching an average of $789 per household. Simultaneously, monthly energy costs rose by 12%, indicating that more Americans are struggling to afford basic necessities like heat, power, and lighting.
Julie Margetta Morgan, president of The Century Foundation, explained the severity of the trend: “There’s a lot of information out there about rising utility costs, but here we can actually look at what that impact has been on families in terms of how they’re falling behind.”
A Political and Economic Challenge for the Trump Administration
The timing is politically sensitive. President Donald Trump, who is promoting the artificial intelligence boom as a cornerstone of economic growth, now faces a disconnect between high-tech investment and household affordability. AI data centers, known for consuming vast amounts of energy, may contribute to future increases in utility costs, amplifying the financial burden on everyday consumers.
In response to recent political setbacks — including poor Republican performances in off-year elections — the administration has tried to highlight falling fuel prices. However, gasoline makes up only 3% of the Consumer Price Index, compared to a larger share from electricity and natural gas, limiting the impact of any savings at the pump.
Despite his public stance that affordability concerns are exaggerated, Trump has called inflation data “false” and dismissed criticism as a partisan tactic. In a social media post on Friday, he claimed, “Costs under the TRUMP ADMINISTRATION are tumbling down… Affordability is a lie when used by the Dems.”
Households in Deep Utility Debt Could Face Collection
According to the report, nearly 6 million households are so behind on their utility bills that they could be reported to collection agencies — a red flag that could affect credit scores and access to other financial services.
Even within the first six months of Trump’s second term, the number of severely delinquent utility accounts rose 3.8%. Mike Pierce, executive director of Protect Borrowers, criticized the administration’s lack of regulatory action.
“Voters are frustrated and families are hurting because these tech giants are cutting backroom deals with politicians, and it’s causing their power bills to go up,” said Pierce. “If the Trump administration doesn’t want to protect families and make life more affordable, I guess that’s its choice.”
Both Pierce and Morgan previously worked at the Consumer Financial Protection Bureau, an agency established to oversee household lending practices but which has been largely inactive under the Trump administration.
White House: Not Our Responsibility
Federal officials have deflected responsibility for rising utility prices, pointing instead to state utility boards that regulate electricity rates. Treasury Secretary Scott Bessent told ABC News that “Electricity prices are a state problem.”
The administration has also argued that Democratic-led states, which rely more heavily on renewable energy, face higher electricity costs. However, The Century Foundation counters that the administration is partly to blame for rising utility bills by impeding renewable energy development, including delays and opposition to solar and wind projects.
Economic Data Presents Mixed Signals
While utility delinquencies are rising, other consumer financial indicators show mixed trends:
- The New York Federal Reserve recently reported slight increases in delinquency rates for mortgages, auto loans, and student loans, but still described mortgage delinquency as “relatively low.”
- ‘According to the Bank of America Institute, debit and credit card spending patterns suggest that consumer financial health remains mostly stable, though pressure is rising in some areas.
These contrasting indicators suggest that while the overall economy hasn’t tipped into recession, millions of Americans are quietly falling behind, particularly on essential costs like energy.
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