Projected Household Energy Costs
New Analysis Projects Trump Energy Policies Will Increase Household Costs by $6,500
Anonymous
Energy Innovation estimates that federal policy changes under President Donald Trump could raise household energy costs in the contiguous United States by an average of $6,500 cumulatively through 2040, with increases of about $9,000 in Oregon, Mississippi, South Dakota, Virginia and Wyoming. The analysis says canceling clean-energy projects and rolling back incentives for efficient and lower-emissions vehicles could increase reliance on natural gas and gasoline, putting upward pressure on prices. Rising electricity demand from data centers, grid upgrades, inflation and weather-related costs are also contributing to higher bills, while the Iran war has pushed oil and gasoline prices higher. The Trump administration disputes the outlook, saying its focus on fossil fuels will make energy more affordable and improve grid reliability.
Key Points
1
The International Energy Agency reported that energy prices hit records from 2022 to 2024 in the European Union, United Kingdom, Japan and South Korea, and that price increases since 2019 outpaced income growth and inflation in several economies, including the United States.
2
The Energy Information Administration projected that residential electricity would average 18.6 cents per kilowatt-hour in 2027, up from 17.3 cents in 2025 and 18.2 cents in 2026.
3
White House spokeswoman Taylor Rogers said lowering electricity prices is a priority and wrote, “Joe Biden created a grid crisis; President Trump is fixing it,” arguing that the administration is backing coal and natural gas to address what it calls damage to the grid from clean-energy policies.
4
A 2025 Department of Energy report, mandated by President Trump, warned of increasing blackouts if the United States continued closing coal- and natural-gas-fired power plants.
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