WASHINGTON (AP) — More people are struggling to keep up with bills to sustain basic utilities like electricity and heat, according to a new analysis released by The Century Foundation, a progressive think tank. This rise in utility debt could suggest broader economic difficulties affecting American families and serves as a significant point of contention for President Donald Trump.
The report indicates a staggering 9.7% annual jump in overdue accounts to utility companies, with the average delinquency reaching $789 between April and June of 2024. This increase aligns with a massive 12% leap in monthly energy bills, indicating that consumers are not only falling behind on utility payments but likely on other bills as well.
Julie Margetta Morgan, president of The Century Foundation, emphasized that while there is plenty of discussion regarding escalating utility costs, the analysis shows a concrete impact on household finances. We're witnessing a trend where increasing energy expenses are having a direct effect on the ability of families to pay their bills,” Morgan stated.
This emerging trend poses a significant political headache for Trump amid rising inflation and cost-of-living complaints from voters. The heavy financial burden associated with energy consumption adds tension to Trump's economic policies, especially as he markets the growth of the artificial intelligence sector, known for its extensive energy requirements.
The consequences of utility debt extend beyond mere financial strain. Nearly 6 million households are reportedly facing utility debts severe enough to warrant notifications to collections agencies. The analysis, drawn from the University of California Consumer Credit Panel, highlights a consistent increase in overdue bills, with a 3.8% rise reported during Trump's first six months in office.
Moreover, voters are expressing frustration over rising costs, putting additional pressure on Trump's ability to assure the public that economic conditions are improving. The administration has dismissed claims of responsibility for soaring utility costs by attributing them primarily to state regulations, yet many analysts argue that federal policies also play a role in hindering renewable energy development, which could alleviate some of the financial burdens on consumers.
As the 2026 midterms approach, the impact of increasing utility prices may become a pivotal factor in competitive congressional races, compelling the Trump administration to reassess how they convey economic progress and affordability to the electorate.
The report indicates a staggering 9.7% annual jump in overdue accounts to utility companies, with the average delinquency reaching $789 between April and June of 2024. This increase aligns with a massive 12% leap in monthly energy bills, indicating that consumers are not only falling behind on utility payments but likely on other bills as well.
Julie Margetta Morgan, president of The Century Foundation, emphasized that while there is plenty of discussion regarding escalating utility costs, the analysis shows a concrete impact on household finances. We're witnessing a trend where increasing energy expenses are having a direct effect on the ability of families to pay their bills,” Morgan stated.
This emerging trend poses a significant political headache for Trump amid rising inflation and cost-of-living complaints from voters. The heavy financial burden associated with energy consumption adds tension to Trump's economic policies, especially as he markets the growth of the artificial intelligence sector, known for its extensive energy requirements.
The consequences of utility debt extend beyond mere financial strain. Nearly 6 million households are reportedly facing utility debts severe enough to warrant notifications to collections agencies. The analysis, drawn from the University of California Consumer Credit Panel, highlights a consistent increase in overdue bills, with a 3.8% rise reported during Trump's first six months in office.
Moreover, voters are expressing frustration over rising costs, putting additional pressure on Trump's ability to assure the public that economic conditions are improving. The administration has dismissed claims of responsibility for soaring utility costs by attributing them primarily to state regulations, yet many analysts argue that federal policies also play a role in hindering renewable energy development, which could alleviate some of the financial burdens on consumers.
As the 2026 midterms approach, the impact of increasing utility prices may become a pivotal factor in competitive congressional races, compelling the Trump administration to reassess how they convey economic progress and affordability to the electorate.
