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By Daniel Orton
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Millions of Americans are struggling to keep up with rising utility costs, according to a new data analysis, pushing up overdue balances on household electricity and heating bills as families struggle with persistent high prices for many groceries and other items.
Why It Matters
With nearly one in 20 U.S. households now facing utility debt severe enough for collection agencies to become involved, the problem has developed into a significant economic and political issue, which may affect the White House administration’s credibility on affordability, especially as voters have cited cost-of-living as their top concern in recent elections.
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What To Know
Recent analysis from The Century Foundation, a liberal think tank, reveals a 9.7 percent annual jump in past due balances on utility bills, now averaging $789 between April and June 2025, up from the previous year. This spike coincides with a 12 percent increase in monthly energy bills over the same period.
The surge in energy debt directly challenges President Donald Trump’s ongoing effort to convince the public that his administration is easing the cost-of-living burden, a central theme of his current messaging one year out from the midterms.
"I'm the one that's getting the prices down," he told reporters on Sunday night before boarding Air Force One to return to the White House from Florida, promising that "some little price reductions and in some cases some pretty good ones" were on the way. It follows a Truth Social post from the president on Friday in which he declared, "We are the Party of Affordability!"
The Century Foundation analysis draws on consumer credit data from the University of California Consumer Credit Panel and finds that nearly 6 million households have overdue utility debts “so severe” that they are about to be reported to collection agencies.
Overdue Utility Bills Exceeding $1,500
Trump’s first six months of his current term, the number of households with severely overdue utility bills rose by approximately 117,000—a 3.8 percent increase. Monthly energy costs nationwide surged from $196 to $265—a 35 percent increase from March 2022 to June 2025, vastly outpacing overall inflation during that time. The burden is especially acute in the Northeast and parts of the South and Appalachia, with overdue balances commonly exceeding $1,500 in colder states.
These developments come amid escalating energy demands, notably from AI data centers, and as families face higher prices for essential goods and services including food, housing, and transportation.
The White House attributes increases in utility prices to state-level decisions and to markets beyond the federal government's direct control, arguing that energy costs are higher in Democratic-led states that prioritize renewables.
While the new analysis signals potential trouble ahead, other economic data suggests that consumers’ finances remain largely stable despite some emerging pressures.
The New York Federal Reserve reports that 90-day-plus delinquency rates for mortgages, auto loans, and student debt have all risen over the past year, though mortgage delinquencies remain “relatively low.” Meanwhile, a separate review of debit and credit card spending by the Bank of America Institute found that consumers’ “overall financial health looks sound.”
What People Are Saying
Julie Margetta Morgan, president of The Century Foundation, said: “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."
Mike Pierce, executive director of Protect Borrowers and a contributor to the analysis, said: “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. 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."
President Donald Trump dismissed concerns over inflation and utility costs in a post on Truth Social on Friday: "Cost, and INFLATION, were far higher under the Sleepy Joe Biden Administration, than they are now. In fact, costs under the TRUMP ADMINISTRATION are tumbling down, helped greatly by gasoline and ENERGY. Affordability is a lie when used by the Dems. It is a complete CON JOB. Thanksgiving costs are 25% lower this year than last, under Crooked Joe! We are the Party of Affordability!"
Treasury Secretary Scott Bessent told ABC News earlier this month: “Electricity prices are a state problem…There are things that the federal government can control. Local electricity prices are not one of them.”
What Happens Next
Analysts suggest that the current trajectory of rising utility debt could worsen in the coming winter as households face more expensive heating bills and higher electricity demand from expanding AI-related infrastructure. Policy researchers warn that without intervention millions more could risk disconnections or fall into deeper financial distress.
This article contains reporting from The Associated Press
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