WASHINGTON (AP) – A new analysis of consumer data shows more people are falling behind on payments to light and heat their homes, a red flag for the U.S. economy and economy. Another political headache for president donald trump.
Overdue balances owed to utilities rose 9.7% annually to $789 between the April-June period of 2024 and 2025, according to the Century Foundation, a liberal think tank. This increase coincides with a 12% increase in monthly utility bills over the same period.
Julie Margetta Morgan, president of the foundation, said consumers typically prioritize paying their utility bills along with mortgages and car debts. Increases in both energy costs and delinquencies may suggest that consumers are also delinquent on other bills.
“There’s a lot of information out there about rising utility bills, but here you can actually see how it’s impacting families in terms of how they’re falling behind on their bills,” Margetta Morgan said.
Problems with payment Electricity and natural gas bills This reflects an economic predicament of sorts for President Trump, who is pushing to build an artificial intelligence industry as a key part of the economic boom he has promised the United States. However, AI data centers are known for the following characteristics: use of large amounts of electricityand threatens to further increase utility bills for everyday Americans.
These problems also occur as President Trump faces political pressure from voters I’m tired of the high cost of living.
Since the Republican Party saw their fortunes decline This month’s off-year election Affordability identified as the biggest challengePresident Trump has tried to convince the public that prices are falling. A sudden rise in electricity bills could become a problem Some parliamentary battlegrounds in next year’s midterm elections.
President Trump has placed particular emphasis on rising prices. Gasoline makes up about 3% of the consumer price index, which is slightly less than electricity and natural gas, so any savings you make on gas could be offset by higher utility costs.
The president claims that any alarming data on inflation is false and that Democrats are simply trying to damage his administration’s reputation.
“In fact, costs are going down under the Trump administration, helped in large part by gasoline and energy,” President Trump posted on social media on Friday. “Affordability is a lie when used by Democrats.”
Nearly 6 million households have “very serious” utility debt and will soon be reported to collection agencies, according to the foundation’s analysis from the University of California Consumer Credit Panel.
In President Trump’s first six months in office, the number of households significantly behind on their utility bills increased by 3.8%.
“Voters are dissatisfied and families are hurting because these big tech companies are cutting backroom deals with politicians, which is driving up electricity prices,” said Mike Pearce, executive director of the advocacy group Protect Borrowers, which contributed to the analysis. “If the Trump administration doesn’t want to do its job, protect families and make life more affordable, I think that’s the government’s choice.”
Margetta Morgan and Pierce previously Consumer Financial Protection Bureaua government agency established in part to track trends in household borrowing to prevent potential abuse. The Trump administration essentially shut down Bureau.
The government has so far said it is not responsible for any increases in electricity prices because they are often regulated by state electricity commissions. The White House argues that energy bills are higher in Democratic states that rely on renewable energy.
“Electricity rates are a state issue,” Treasury Secretary Scott Bessent told ABC News this month. “There are some things the federal government can control, and local electricity rates are not among them.”
The Century Foundation’s analysis counters that the Trump administration is contributing to rising utility costs “by discouraging the generation of renewable energy” such as solar and wind power.
While the new analysis is a warning sign, other economic analysis of consumers suggests their finances are stable despite some new pressures.
The Federal Reserve Bank of New York announced that the delinquency rate for mortgages, auto loans, etc. is 90 days or more. student loan It said mortgage delinquencies were “relatively low”, although each had increased over the past 12 months. An analysis of debit and credit card spending by the Bank of America Research Institute showed that consumers’ “overall financial health is in good health.”
