Energy Costs Have Increased Under New Federal Policy
New modeling suggests household energy costs will rise significantly for residents through 2040.
Updated on Oct. 2, 2026 in Utilities
Live Poll
Do you expect recent federal energy policy changes to increase your household's monthly utility costs?
Recent modeling released by the think tank Energy Innovation indicates that federal policy changes enacted since Donald Trump returned to office will increase energy costs. Households across the contiguous United States face projected cumulative cost increases through 2040.
Why it matters
The findings highlight the long-term financial implications of shifts in federal energy policy. These cost projections provide a view of how current administrative changes may affect residential utility budgets over the coming decades.
Analysis indicates households in the contiguous United States will pay an average of $6,500 more for energy through 2040. Households in Oregon, Mississippi, South Dakota, Virginia, and Wyoming are projected to pay roughly $9,000 more during that period.
The players
Donald Trump
Donald Trump serves as the current President of the United States.
Energy Innovation
Energy Innovation is a nonpartisan think tank that provides analysis and modeling on energy and climate policy.
The details
Energy Innovation utilized modeling to calculate the cumulative energy cost impact resulting from federal policy changes. The projections focus on the extended financial burden placed on residential consumers through the year 2040.
Timeline
The think tank released its modeling on Friday.
The projected cumulative energy cost increases extend through 2040.
Market Landscape
This analysis updates the financial projections previously established by the Inflation Reduction Act's clean energy incentives. It illustrates a shifting trajectory in the cost burden for utility customers following major federal policy changes.
Average households should anticipate higher energy bills as these policy changes take effect over the long term. Residents in the five identified states may see a more pronounced impact on their total utility expenditures through 2040.
The takeaway
These projections suggest that federal regulatory changes carry significant long-term financial consequences for individual household budgets. Consumers are encouraged to monitor future utility rate filings to track how these shifts manifest in their local energy markets.
Further reading
Learn more about shifting power sector trends on our Utilities page.
Live Poll
Do you expect recent federal energy policy changes to increase your household's monthly utility costs?
