More people are falling behind on paying their bills to keep on the lights and heat their homes, according to a new analysis of consumer data — a warning sign for the U.S. Economy and another political headache for President Donald Trump.
TL;DR
- Nearly 6 million households face severe utility debt, a 9.7% annual jump in past due balances.
- Rising energy bills and late payments suggest consumers struggle with other financial obligations.
- President Donald Trump faces political pressure over high living costs and affordability concerns.
- The Trump administration claims utility prices are a state issue, not federal responsibility.
Past due balances to utility companies jumped 9.7% annually to $789 between the April-June periods of 2024 and 2025, said The Century Foundation, a liberal think tank. The increase has overlapped with a 12% jump in monthly energy bills during the same period.
Julie Margetta Morgan, the foundation's president, noted that consumers typically place a high priority on their utility bills, mortgages, and auto loans. The simultaneous rise in energy expenses and late payments could indicate that consumers are also struggling to meet other financial obligations.
“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,” Margetta Morgan said.
Difficulties in paying electricity and natural gas bills highlight a peculiar economic challenge for Trump, who is advocating for the expansion of the artificial intelligence sector as a cornerstone of the economic prosperity he has pledged to the nation. However, AI data centers are recognized for their massive use of electricity, potentially leading to even higher energy costs for the average citizen.
These troubles also come as Trump faces political pressure from voters fed up with the high cost of living.
Ever since Republicans saw their fortunes sag in off-year elections this month and affordability was identified as the top issue, Trump has been trying to convince the public that prices are falling. Fast-rising electricity bills could be an issue in some congressional battlegrounds in next year’s midterm elections.
President Trump has specifically focused on the cost of gasoline. Since gasoline represents approximately 3% of the consumer price index, a figure slightly lower than that of electricity and natural gas expenses, any potential savings at the pump might be outweighed by increased utility costs.
The president insists that any concerning inflation figures are fabricated and that Democrats are merely attempting to damage his administration's standing.
“In fact, costs under the TRUMP ADMINISTRATION are tumbling down, helped greatly by gasoline and ENERGY,” Trump posted on social media Friday. “Affordability is a lie when used by the Dems,”
Nearly 6 million households have utility debt “so severe” that it will soon be reported to collection agencies, according to the foundation’s analysis, drawn from the University of California Consumer Credit Panel.
In the initial six months of Trump's presidency, a 3.8% rise was observed in households experiencing significantly delinquent utility payments.
“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 Mike Pierce, executive director of the advocacy group Protect Borrowers, which contributed to the analysis. “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.”
Margetta Morgan and Pierce formerly held positions at the Consumer Financial Protection Bureau, a governmental body established partly to monitor household borrowing patterns and avert potential misconduct. The Trump administration has effectively shut down the agency.
To date, the administration has stated it bears no accountability for any hikes in electricity rates, as these are frequently overseen by state utility commissions. The White House asserts that utility expenses are greater in Democratic states that depend on renewable energy sources.
“Electricity prices are a state problem,” Treasury Secretary Scott Bessent told ABC News this month. “There are things that the federal government can control. Local electricity prices are not one of them.”
The Century Foundation analysis counters that the Trump administration is contributing to higher utility costs “by impeding renewable energy generation” including solar and wind power.
Although the recent findings serve as a cautionary signal, other economic evaluations of consumers indicate their financial situations remain sound despite some developing challenges.
According to the New York Federal Reserve, 90-day or longer delinquency rates for mortgages, auto loans, and student debt have risen in the last year. However, it noted that mortgage delinquencies are “relatively low.”. An examination of debit and credit card expenditures by the Bank of America Institute revealed that consumers' “overall financial health looks sound.”