Trump Energy Policies to Raise US Household Costs by $500 Billion by 2040, Analysis Finds
Updated
Updated · CNN · Jul 7
Trump Energy Policies to Raise US Household Costs by $500 Billion by 2040, Analysis Finds
1 articles · Updated · CNN · Jul 7
Summary
$500 billion in added household energy costs by 2040 would result from Trump administration policies curbing renewables, ending tax credits and extending coal use, according to a new Energy Innovation analysis.
Average household bills would rise $460 by 2035 and as much as $490 by 2040, the report says, even after Trump had pledged to cut electricity bills in half.
Electricity rates have already climbed 7.4% nationwide since last fall as AI-driven data center demand strains the grid, making limits on new wind and solar capacity more consequential.
Solar and batteries still supplied 91% of new US power capacity in the first quarter, but Energy Innovation projects a post-2030 solar drop-off after tax credits end.
The analysis also projects EV adoption falling to 23% of new car and SUV sales in 2035 from a previously expected 68%, while longer-lived coal plants add $43 billion in health-related costs by 2040.
As AI's power demand soars, can the grid modernize fast enough to prevent crippling electricity bills for American families?
A tax loophole is fueling a solar boom, but what happens to the energy market when this 'solar cliff' arrives after 2030?
The High Price of Policy: OBBBA, War with Iran, and the Rising Cost of Energy for American Families
Overview
The report highlights how the 'One Big Beautiful Bill Act' (OBBBA) is expected to raise energy costs for American households, making it harder for families to manage expenses through clean energy options like solar panels and electric vehicles. These rising costs are compounded by global events, such as the war with Iran, which has driven up energy prices and inflation. The OBBBA’s policy changes also slow clean energy development, increase reliance on fossil fuels, and threaten economic growth, job creation, and environmental progress. Together, these factors create significant financial and social challenges for consumers and the nation’s energy future.