Trump Era Policy Shifts to Drive up Energy Costs Through 2040

A nonpartisan think tank has found that households in the contiguous United States will pay thousands of dollars more for energy through 2040 due to federal policy changes since President Donald Trump returned to office. The Energy Innovation analysis found that households will pay an average of $6,500 more for energy cumulatively through 2040. In five states, Oregon, Mississippi, South Dakota, Virginia, and Wyoming, households will pay roughly $9,000 more.

The California-based think tank said there will be more demand for natural gas for electricity due to the administration canceling new wind, solar, and hydrogen projects. This increased demand is expected to drive up prices. The International Energy Agency reported that record prices were observed between 2022 and 2024 in the European Union, the United Kingdom, Japan, and Korea.

The analysis also found that federal policy changes will result in annual household energy costs rising in every state in the contiguous U.S., plus job losses in 47 of 48 states and losses to the gross domestic product in 46 states. The Energy Innovation think tank projects 37,000 additional premature deaths from air pollution, $72 billion in additional healthcare costs, and more than 9 billion tons of additional carbon pollution.