A new reconciliation spending bill, signed by President Donald Trump on July 4, is projected to significantly increase household energy bills across the US, particularly in Republican-leaning states. Analysis by Energy Innovation indicates electricity rates could rise by up to 18% by 2035, with average annual household energy costs increasing by $170. States like Missouri, Kentucky, South Carolina, Oklahoma, North Carolina, and Texas are expected to see the largest spikes, with Missouri facing over $600 annual increases. The bill achieves this by stripping away support for cheap renewable energy, forcing reliance on less efficient fossil fuels, despite Trump's campaign promise to lower energy costs.
Trump promised to lower energy costs – his tax bill will raise them for people in red states the most
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TL;DR: Key points with love ❤️A new reconciliation spending bill, signed by President Donald Trump on July 4, is projected to significantly increase household energy bills across the US, particularly in Republican-leaning states. Analysis by Energy Innovation indicates electricity rates could rise by up to 18% by 2035, with average annual household energy costs increasing by $170. States like Missouri, Kentucky, South Carolina, Oklahoma, North Carolina, and Texas are expected to see the largest spikes, with Missouri facing over $600 annual increases. The bill achieves this by stripping away support for cheap renewable energy, forcing reliance on less efficient fossil fuels, despite Trump's campaign promise to lower energy costs.
Trending- 1 2020: Around 34m US households reported difficulties paying energy bills.
- 2 Since 2022: Electricity prices for American households increased above inflation.
- 3 2023: Study warns of catastrophic consequences in Phoenix during prolonged heatwave and blackout.
- 4 Last year: Donald Trump won election, partly promising to lower energy costs.
- 5 Last month: Trump says 'I don't want windmills destroying our place.'
- 6 Last month: Maryland offers assistance to residents struggling with energy bills.
- 7 Last month: Shauna Thomas found dead in St Louis after electricity halted.
- 8 June (current year): 110,000 people in New York City lost power due to surge in electricity use.
- 9 July 4: Reconciliation spending bill signed by President Trump.
- 10 Current year: Utilities pushed for $29bn in higher rates so far (142% more than 2024).
- 11 By 2035: Electricity rates projected to rise by up to 18%, household energy costs by $170/year on average.
- Increased household energy bills (average $170/year, up to $640/year in some states)
- Increased energy insecurity for vulnerable populations
- Potential for utility shut-offs during extreme heat
- Strain on the power grid
- Potential for increased deaths during heatwaves
- Setback for clean energy projects
What: A Republican-passed reconciliation spending bill, signed by President Donald Trump, is projected to significantly increase household energy bills across the US, especially in Republican-leaning states, by stripping support for renewable energy.
When: Last year (Trump won election), 4 July (bill signed), by 2035 (projected rate increases), since 2022 (electricity prices increased), 2020 (households struggling with bills), last month (Trump's comment, Maryland assistance, Shauna Thomas death), June (NYC power loss), 2023 (Phoenix study).
Where: United States (nationwide impact), Missouri, Kentucky, South Carolina, Oklahoma, North Carolina, Texas (states most affected), Washington (D.C. - implied by Congress/President), New York City, Phoenix, Arizona, St Louis, Maryland.
Why: The bill removes tax credits for renewables, making them less competitive and forcing utilities to rely on more expensive, inefficient gas generators. This contradicts Trump's promise to lower energy costs and is seen as a move to boost fossil fuel consumption.
How: The reconciliation spending bill strips away support (tax credits) for cheap solar and wind energy production, leading to increased reliance on existing, inefficient gas generators, which in turn drives up electricity rates and household energy costs.