Analysis Finds Bad News on Americans' Utility Bills

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 US economy and another political headache for President Trump, the AP reports. 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, and the advocacy group Protect Borrowers. The increase has overlapped with a 12% jump in monthly energy bills during the same period. Consumers usually prioritize their utility bills along with their mortgages and auto debt, said Julie Margetta Morgan, the foundation's president. The increase in both energy costs and delinquencies may suggest that consumers are falling behind on other bills, too.

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. Troubles paying electricity and natural gas bills reflect something of an economic quandary for Trump, who is promoting the buildout of the artificial intelligence industry as a key part of an economic boom he has promised for America. But AI data centers are known for their massive use of electricity, and threaten to further increase utility bills for everyday Americans.

These troubles also come as Trump faces political pressure from voters fed up with the high cost of living. The president spoke about the economy and affordability issues Monday at an event hosted by the McDonald's fast food company. "We have it almost at the sweet spot and prices are coming down on different things," Trump said at the event, adding that inflation has been "normalized" at a "low level." 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.