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More people are falling behind on paying their bills to keep the lights on and heat their homes, according to a new analysis of consumer data—a warning sign for the U.S. economy and another political headache for President Donald Trump.
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.
“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 said.
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 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.”
During Trump’s first six months in office, there was a 3.8% increase in households with severely overdue utility bills.
This article was provided by The Associated Press.