In brief
An analysis from The Century Foundation shows that more Americans are struggling to pay their utility bills, with past-due balances rising 9.7% annually amid a 12% increase in monthly energy costs. This situation could spell economic trouble for the U.S. and pose political challenges for President Trump. Nearly 6 million households face severe utility debt, raising questions about the implications for affordability and consumer confidence in the economy.
WASHINGTON (AP) — 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. This alarming trend serves as a warning sign for the U.S. economy and presents another political headache for President Donald Trump.
The Century Foundation, a liberal think tank, reported that past due balances to utility companies jumped 9.7% from April to June 2025, reaching an average of $789. This increase coincides with a staggering 12% rise in monthly energy bills.
Julie Margetta Morgan, the foundation’s president, noted that consumers usually prioritize utility bills alongside their mortgages and auto debt. The increase in both utility costs and delinquencies suggests that consumers may also be struggling with other financial obligations.
“There’s a lot of information about rising utility costs, but here we can actually look at the impact on families in terms of how they’re falling behind,” Margetta Morgan stated.
Troubles paying electricity and natural gas bills highlight an economic conundrum for Trump, who is promoting the development of the artificial intelligence industry as a key part of an economic boom he has promised for the nation. However, AI data centers are notorious for their massive electricity consumption, which may further increase utility bills for everyday Americans.
These financial troubles come as Trump faces intensified political pressure from voters frustrated with the high cost of living.
Nearly 6 million households carry utility debt severe enough that it will soon be reported to collection agencies, according to the foundation's analysis. During Trump’s initial six months in office, there was a 3.8% increase in households with severely overdue utility bills.
While the new analysis signals potential economic instability, other economic studies suggest that consumers' finances remain relatively stable amid emerging pressures.
