Monthly energy costs are increasing in the U.S. with past-due balances. And people are really struggling to pay their gas and electricity bills.
Families are thinking twice about keeping the lights on. And the whole situation is putting political pressure on President Donald Trump, who is attempting to persuade voters that life is getting more affordable and that prices are under control.
Rising utility debts and higher energy costs
The Century Foundation and the advocacy group Protect Borrowers found that between April and June 2024 and the same period in 2025, past-due balances to utility companies increased by 9.7%, with an average of $789. Monthly energy bills increased by 12% during the same period. “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.” stated Julie Margetta Morgan, president of The Century Foundation.
Nearly 6 million households have utility debt “so severe” that it will soon be reported to collection agencies, according to the researchers. People will have it more difficult to borrow money or even sign leases in the future if they have that much debt, which can harm their credit scores. Falling behind on utility bills can indicate that they might be having trouble with other expenses because most people consider them to be necessary, along with rent or mortgages and auto payments.
Politics, prices, and the battle over the story
Voters have been reassured by President Trump that things are getting better at a McDonald’s event: “We have it almost at the sweet spot and prices are coming down on different things,” he said, adding that inflation has been “normalized” at a “low level.”
Trump has claimed on social media that his opponents’ concerns about affordability are a political tricks. He maintained that, “In fact, costs under the TRUMP ADMINISTRATION are tumbling down, helped greatly by gasoline and ENERGY,” and wrote, “Affordability is a lie when used by the Dems.”
However, critics claim that the administration is not doing enough to protect families from growing expenses, particularly as the artificial intelligence sector expands. “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.” Stated Mike Pierce, executive director of Protect Borrowers. “If the Trump administration doesn’t want to do its job and protect families and make life more affordable, I guess that’s its choice.”
,The administration insists that increased utility costs are not its fault. “Electricity prices are a state problem. There are things that the federal government can control. Local electricity prices are not one of them.” Treasury Secretary Scott Bessent stated to ABC News.
What the numbers say about households’ health
The number of households with significantly past-due utility bills increased by 3.8% during Trump’s first six months in office. The same organizations say that the administration is pushing up costs “by impeding renewable energy generation,” like wind and solar, which they believe have the potential to stabilize or reduce long-term electricity prices.
Although 90-day-plus mortgage, auto loan, and student loan delinquencies have increased over the past year, according to the New York Federal Reserve, mortgage delinquencies are still regarded as “relatively low.”
Based on credit card and debit card data, the Bank of America Institute claims that consumers’ “overall financial health looks sound.” Even as more people struggle with rising utility costs, people continue to spend and many are paying off their major debts.
The picture is not pretty though. Behind those numbers are families making decisions about which bills to pay first, showing how insecure they feel on a daily basis.