New analysis shows more US consumers are falling behind on their utility bills

More Americans are struggling to pay their utility bills, according to a new analysis that signals potential trouble for the U.S. economy and adds to President Donald Trump’s political challenges.

Past due balances to utility companies surged 9.7% annually to $789 between the April-June periods of 2024 and 2025, according to an analysis by The Century Foundation, a liberal think tank. This increase coincides with a 12% jump in monthly energy bills during the same timeframe.

Julie Margetta Morgan, the foundation’s president, noted that consumers typically prioritize utility payments alongside mortgage and auto loan obligations. The simultaneous rise in energy costs and delinquencies may indicate that households are falling behind on other financial obligations as well.

“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,” Margetta Morgan explained.

The analysis, drawn from the University of California Consumer Credit Panel, reveals that nearly 6 million households have utility debt so severe that it will soon be reported to collection agencies. During Trump’s first six months in office, there was a 3.8% increase in households with severely overdue utility bills.

This trend creates a complex economic challenge for Trump, who has been promoting the expansion of the artificial intelligence industry as a cornerstone of his promised economic boom. However, AI data centers are notorious for their massive electricity consumption, which threatens to further increase utility costs for average Americans.

The rising utility costs come at a politically sensitive time, as affordability has emerged as voters’ top concern. Following Republican setbacks in recent off-year elections, Trump has been trying to reassure the public that prices are falling. However, escalating electricity bills could become a significant issue in congressional battleground districts during next year’s midterm elections.

The president has focused particularly on gasoline prices, which account for about 3% of the consumer price index—slightly less than electricity and natural gas bills combined. This means that any savings at the pump could potentially be offset by higher utility costs.

Trump has dismissed concerning inflation data, claiming on social media that “costs under the TRUMP ADMINISTRATION are tumbling down, helped greatly by gasoline and ENERGY.” He further asserted that “Affordability is a lie when used by the Dems.”

The Trump administration has largely deflected responsibility for rising electricity prices, arguing that these costs are regulated by state utility boards. Treasury Secretary Scott Bessent told ABC News: “Electricity prices are a state problem. There are things that the federal government can control. Local electricity prices are not one of them.”

However, The Century Foundation analysis counters that the administration is contributing to higher utility costs “by impeding renewable energy generation,” including solar and wind power.

Mike Pierce, executive director of the advocacy group Protect Borrowers, which contributed to the analysis, criticized the administration’s approach: “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.”

Both Margetta Morgan and Pierce previously worked at the Consumer Financial Protection Bureau, a government agency established partly to track trends in household borrowing to prevent potential abuses. Critics note that the Trump administration has effectively curtailed the bureau’s operations.

While the utility payment analysis raises concerns, other economic indicators suggest consumer finances remain relatively stable despite emerging pressures. The New York Federal Reserve has reported that delinquency rates of 90 days or more for mortgages, auto loans, and student debt have each increased over the past 12 months, though it characterized mortgage delinquencies as “relatively low.” Additionally, an analysis of debit and credit card spending by the Bank of America Institute concluded that consumers’ “overall financial health looks sound.”

The rising utility costs and increasing delinquencies nonetheless serve as an early warning sign of potential economic stress for American households, particularly as the administration pursues policies that could further impact energy markets and consumer costs.