Trump’s Broken Promises: Energy and Utility Bills Surge as Families Struggle to Keep Up

Trump’s Broken Promises: Energy and Utility Bills Surge as Families Struggle to Keep Up

New Groundwork Collaborative fact sheet details how skyrocketing energy prices caused by tariffs, data centers, and Trump’s war in Iran are squeezing household budgets 

President Trump promised to cut energy prices in half within his first year in office. He has done the exact opposite. Electricity prices rose nearly 7% last year, with the typical household paying $123 more for electricity in 2025 alone. Now, Trump’s disastrous Iran war has blocked one-fifth of the world’s oil supply, causing gasoline to rise by over a dollar this month to nearly $4 a gallon as diesel nears all-time highs. Those price increases come on top of heightened AI data center demand, which has driven utilities to file for record rate increases. A new fact sheet from Groundwork Collaborative captures the devastating impact on American households and who they blame.

More than 66% of Americans say their electricity bills have increased over the past year, while just 5% report any decrease. The burden is falling hardest on working families, with lower-income households spending nearly six times more of their income on energy than the wealthiest families. Meanwhile, one in five Americans could not afford their energy bills in 2025, and one in three reported cutting back on food or medicine just to keep the lights on.

Groundwork’s brief explores what Americans think is driving these cost increases and what policies they want decisionmakers to pursue. Nearly half of voters (47%) say tariffs are raising their utility bills, and 65% believe the rapid expansion of AI data centers will push electricity costs even higher. A new poll from Groundwork and Data for Progress finds that a majority of voters (52%) would rather end the Iran war than take temporary half measures to somewhat lower the price of gas, like tapping the Strategic Petroleum Reserve and pausing the federal gas tax.

Click here to read the full fact sheet from Groundwork Collaborative.

BACKGROUND:

Rising Costs Are Hitting Families Across the Country

• Electricity prices are increasing at more than twice the rate of inflation, with states like Pennsylvania (14%) and New Hampshire (11%) experiencing even sharper spikes. At the same time, natural gas prices rose nearly 10% last year, compounding the pressure on household utility bills.
• 14 million Americans are over 90 days delinquent on their energy bill, underscoring how unaffordable basic energy needs have become.

Trump’s Tariffs Are Being Passed Directly to Consumers

• Utility companies are warning that tariffs are increasing the cost of critical infrastructure, and those prices are being passed directly onto consumers. Nearly half of voters recognize tariffs as a driver of higher utility bills.

AI Data Centers Are Driving Up Electricity Prices, and Trump’s Plan Falls Short

• The rapid expansion of AI data centers is placing unprecedented strain on the grid, driving billions in additional costs for consumers, with 65% of Americans expecting data centers to increase their utility bills.
• In data center-saturated Northern Virginia, Dominion Energy requested an over 13% rate increase over the next two years, citing increased AI energy demands. Across the PJM network, customers paid more than $9.3 billion in additional costs last year, partly due to rising demand from data centers.
• Trump’s agreement with major tech firms to provide their own energy needs is unenforceable, voluntary, and will still ultimately leave ratepayers on the hook for higher electricity bills.

Trump’s Band-Aid Solutions to Iran War-Driven Gasoline Price Spikes Fall Short with Voters

• Nearly 9 in 10 voters say the war in Iran will raise prices on essential items like gasoline and food.
• A majority of voters (52%) would rather end the war than take temporary measures to somewhat lower the price of gas, like tapping the Strategic Petroleum Reserve or lifting the federal gas tax.