Trump’s Broken Promise: Energy Bills Soar Despite Vows of Relief
President Trump promised to halve energy prices within his first year in office. More than a year later, the reality is starkly different: energy bills are rising for families across the country, fueled by geopolitical instability, infrastructure challenges, and the growing demands of new technologies.
Electricity and Gas: A Double Blow to Household Budgets
Electricity prices rose more than twice as speedy as overall inflation in 2025, and the trend shows no signs of slowing. Gasoline prices have also surged, exacerbated by the conflict in Iran disrupting oil markets. Utilities are requesting record rate increases, driven in part by the buildout of AI data centers.
Currently, 66% of Americans report an increase in their electricity bills over the past 12 months, while only 5% have seen a decrease. This burden falls disproportionately on working families, who spend nearly 7% of their income on energy compared to 1.2% for higher-income households.
The financial strain is significant: 14 million Americans are already in severe utility debt, and more than one in five couldn’t afford their energy bills in 2025. One in three Americans have been forced to cut back on essential expenses like food and medicine to cover utility costs.
Tariffs Add Fuel to the Fire
Trump’s blanket tariffs are contributing to higher costs for building and maintaining the electric grid. Utilities rely on imported equipment, and these increased costs are directly passed on to consumers.
Major utilities have already cited tariff policies as a factor in rising inflation and borrowing costs. The cost of essential power grid equipment, like transformers, has also increased, leading to higher electricity rates. Nearly half of voters (47%) believe tariffs are responsible for the price they pay for utilities.
The Data Center Dilemma: AI’s Growing Energy Appetite
The rapid expansion of AI data centers is dramatically increasing electricity demand across the United States, putting further upward pressure on prices.
In northern Virginia, Dominion Energy cited data centers when seeking a 13% rate increase. Across the PJM grid, customers paid over $9.3 billion in additional costs last year, partly due to data center demand. Demand is projected to double by 2035.
While the Trump administration sought voluntary agreements with tech companies to address this issue, the pledge is unenforceable and doesn’t address the fundamental problem: data centers still rely on the grid, triggering costly upgrades that are ultimately paid for by households.
Geopolitical Instability and Energy Prices
Trump’s policies regarding Iran are disrupting global oil supply and pushing energy prices higher. The conflict is disrupting shipments through the Strait of Hormuz, and oil production in the region has been curtailed.
Oil prices have jumped above $100 per barrel since the start of the conflict, a 55% increase. Gasoline prices have climbed to $3.98 per gallon, and heating oil is up 35%. These increases extend beyond fuel, impacting fertilizer, food production, shipping, and air travel costs.
A majority of voters (52%) would prefer to see an end to the conflict rather than temporary measures to lower gas prices, such as tapping the Strategic Petroleum Reserve.
Policies Blocking Affordable Energy Solutions
The Trump administration has implemented policies that hinder the expansion of cheaper energy sources and weaken efforts to aid households reduce energy consumption.
Hundreds of solar projects have been delayed due to new federal review requirements and permitting bottlenecks. Efficiency standards that would have lowered household energy bills were struck down following legal challenges. These standards would have improved home efficiency by 37% and cut energy costs by over $950 per year.
Investments in new clean energy supply have also been discouraged, with clean energy project cancellations surging to $35 billion last year. The repeal of the Residential Clean Energy Credit further increased upfront costs for energy-saving upgrades.
Frequently Asked Questions
- What is driving up electricity prices? A combination of factors, including increased demand from data centers, geopolitical instability, and tariffs on imported equipment.
- Are tariffs directly impacting my utility bill? Yes, tariffs increase the cost of essential equipment used to build and maintain the electric grid, and those costs are passed on to consumers.
- What is being done to address the rising costs? The administration has sought voluntary agreements with tech companies, but these are not legally binding and may not be sufficient to address the problem.
The promise of lower energy bills has gone unfulfilled. Explore the data further and share your thoughts on how to address this growing crisis. Read more about energy policy and subscribe to our newsletter for updates.
