A stark new analysis of American consumer data has revealed a worrying escalation in household financial strain, with growing numbers of families falling behind on essential utility payments, signalling potential trouble for the nation's economic stability.
Mounting Debt and Soaring Energy Costs
According to research from The Century Foundation, a liberal think tank, past due balances owed to utility companies jumped by 9.7 per cent annually, reaching an average of $789 between April-June periods of 2024 and 2025. This concerning increase coincided with a 12 per cent surge in monthly energy bills over the same timeframe.
Julie Margetta Morgan, the foundation's president, emphasised the significance of these figures. "Consumers usually prioritise their utility bills along with their mortgages and auto debt," she stated. "The increase in both energy costs and delinquencies may suggest that consumers are falling behind on other bills, too."
She added: "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."
Political Pressure and Economic Quandary
These payment troubles represent something of an economic paradox for President Trump, who has championed the artificial intelligence industry as a cornerstone of his promised economic boom. However, AI data centres are notorious for their massive electricity consumption, potentially driving utility bills even higher for ordinary Americans.
The financial strain arrives as Trump faces mounting political pressure from voters frustrated by persistent high living costs. Since Republicans encountered setbacks in recent off-year elections where affordability emerged as the dominant issue, Trump has attempted to convince the public that prices are declining.
Fast-rising electricity bills could become a decisive factor in next year's congressional battlegrounds during midterm elections.
Trump has particularly focused on petrol prices, which account for approximately 3% of the consumer price index - slightly less than the share belonging to electricity and natural gas bills. This means potential savings on petrol could be more than offset by higher utility costs.
Severe Debt and Administration Response
The foundation's analysis, drawn from the University of California Consumer Credit Panel, indicates 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, households with severely overdue utility bills increased by 3.8%.
Mike Pierce, executive director of the advocacy group Protect Borrowers, which contributed to the analysis, commented: "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. If the Trump administration doesn't want to do its job and protect families and make life more affordable, I guess that's its choice."
Both Margetta Morgan and Pierce previously worked at the Consumer Financial Protection Bureau, a government agency created partly to monitor household borrowing trends and prevent potential abuses. The Trump administration has effectively shut down the bureau.
The administration has stated it bears no responsibility for electricity price increases, arguing these are typically regulated by state utility boards. The White House maintains that utility costs are higher in Democratic states relying on renewable energy.
"Electricity prices are a state problem," Treasury Secretary Scott Bessent told ABC News this month. "There are things that the federal government can control. Local electricity prices are not one of them."
The Century Foundation analysis counters that the Trump administration contributes to higher utility costs "by impeding renewable energy generation" including solar and wind power.
While this new analysis serves as a warning signal, other economic assessments suggest consumer finances remain stable despite emerging pressures. The New York Federal Reserve reported delinquency rates of 90 days or more for mortgages, auto loans and student debt have each increased over the past year, though mortgage delinquencies remain "relatively low." Meanwhile, Bank of America Institute analysis of debit and credit card spending indicated consumers' "overall financial health looks sound."
