In brief
According to recent data from The Century Foundation, overdue utility bills in the U.S. have surged by nearly 10% amid rising energy costs. This trend poses challenges for households as they struggle to manage expenses alongside increasing electricity prices, possibly impacting their ability to pay other debts. The findings signal a potential economic issue as President Trump navigates mounting political pressure from voters frustrated by high living costs.
WASHINGTON (AP) — A new analysis from The Century Foundation highlights a growing issue in American households as delinquency on utility bills escalates. Overdue payments to utility companies increased 9.7% annually, jumping to $789 between the second quarter of 2024 and 2025, coinciding with a 12% rise in energy costs during the same period.
This alarming trend sheds light on the financial struggles families face, with utility bills often prioritized alongside obligations such as mortgage and auto loans. According to Julie Margetta Morgan, the foundation’s president, the simultaneous rise in energy costs and late payments indicates that consumers may be falling behind on other bills as well.
“This data not only reflects the stress from climbing utility costs but also reveals the broader financial strain on families,” Morgan stated.
The difficulties in meeting electricity and natural gas payments could be politically troubling for President Trump, who touts the burgeoning artificial intelligence industry as a cornerstone of American economic growth. However, the energy-intensive nature of AI data centers could exacerbate utility costs for average Americans.
The situation is compounded by Trump's need to reassure a discontented electorate. With nearly 6 million households reportedly facing severe utility debt likely to be sent to collections, the implications for the president are significant as affordability emerges as a crucial voter issue ahead of midterm elections.
Critics argue that the administration's policies contribute to rising costs, pointing to potential impediments to renewable energy expansion. Economic indicators, including an analysis from the Bank of America Institute, suggest a complex financial landscape where consumers' overall well-being might still be stable despite rising delinquency rates.
