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Electricity costs increased by nearly 7% last year, more than twice the rate of overall inflation, and cost Americans $123 more on average.
President Donald Trump ran on promises to cut energy prices "in half" within his first year in office. But according to a report released Wednesday, he's done the exact opposite, and it's expected to get much worse as oil prices soar from his war with Iran.
Electricity prices increased more than twice as fast as overall inflation in 2025, according to a fact sheet by the Groundwork Collaborative.
According to data from the Bureau of Labor Statistics, electricity costs increased by nearly 7% last year, compared with an overall consumer price index increase of 2.7%.
In January, a report by Sen. Elizabeth Warren (D-Mass.), the ranking member of the Senate Banking Committee, found that Americans spent an extra $2,120 in 2025 due to inflation across the economy. Electricity cost the average family an additional $123.
Groundwork's report attributed these price increases to Trump's aggressive tariffs, which the group said have raised the costs of building and maintaining electric grids—costs that energy companies pass directly to consumers.
It also noted the Trump administration's support for the swift build-out of artificial intelligence data centers, which have dramatically increased energy demand in places where they've been constructed.
Costs for consumers connected to America's largest power grid, PJM, for example, increased by a collective $9.4 billion last year—more than a 180% increase. Meanwhile, Bloomberg found that in areas near data centers, wholesale electricity costs had jumped by as much as 267% over the past five years.
That pinch is being felt by consumers, 66% of whom said their electricity bills increased over the past year, compared with just 5% who said they decreased, according to a poll earlier this month from Data for Progress.
Groundwork found that "rising energy prices hit working families the hardest," with those earning under $50,000 spending nearly 7% of their annual income on energy, compared with just 1.2% for those earning above $150,000, according to a 2025 report from the Bank of America Institute.
Rising costs have been a growing source of anger among voters who elected Trump to bring them down, but now give him just a 29% approval rating on the economy, according to a Reuters/Ipsos poll released Tuesday.
It's a historic low that Trump hit for the first time this month as gas prices in the US have soared to an average of $3.98 per gallon as a result of oil price hikes caused by Trump's war with Iran, which resulted in Iran closing the Strait of Hormuz, a critical global shipping route.
Groundwork noted that the pain of the war goes far beyond the pump: The price of residential heating oil is already up 35% since the war began. Meanwhile, rising diesel costs for trucks and disruptions to the global shipment of fertilizer are expected to jack up food prices.
Short of ending the war altogether, the group pointed out that Trump has options to reduce energy costs by tapping into increasingly cheap and abundant wind and solar energy.
Instead, however, the president has delayed hundreds of solar projects by introducing new review requirements that have slowed construction and backed lawsuits to gut efficiency standards.
Earlier this month, at the Trump administration's urging, a federal judge sided with 15 red states to strike down Biden administration energy standards, which were estimated to reduce costs by more than $950 per year for families living in federally funded housing.
While Trump has taken actions aimed at curbing the global fuel shock, including tapping the Strategic Petroleum Reserve and pausing the federal gas tax, a poll from Groundwork and Data for Progress this week found that more than half of Americans, 52%, would prefer to simply see the war end rather than these emergency measures.
"This is collective punishment," said the president of the National Iranian American Council. "Targeting power plants, nuclear plants, and desalination plants are war crimes."
Update (7:35 am ET):
US President Donald Trump wrote on social media early Monday that he has instructed the Pentagon to "postpone any and all military strikes against Iranian power plants and energy infrastructure for a five-day period, subject to the success of the ongoing meetings and discussions."
Trump asserted that US and Iranian officials have had "very good and productive conversations" over the past two days "regarding a complete and total resolution of our hostilities in the Middle East."
Iran denied Trump's claim of talks, saying the US president "backed down" after its retaliatory threats against power infrastructure in Gulf nations.
Earlier:
US President Donald Trump's threat over the weekend to bomb Iranian power plants if the Strait of Hormuz is not fully reopened by Monday night sparked horror around the world and inside Iran, a nation of roughly 90 million people.
"As far as I can tell, everyone is extremely worried," a 35-year-old Tehran resident, identified as Ruhollah, told The New York Times via text message late Sunday as the US president's arbitrary deadline approached. "We are sitting and waiting to see what will happen to us in 48 hours. Everyone will suffer: We will lose power, the Arabs will lose power and water."
The Iranian government threatened to retaliate against any US attack on its civilian power infrastructure with a large-scale assault on power plants serving US military installations and other American interests in Gulf nations.
"If you hit electricity, we hit electricity," the Islamic Revolutionary Guard Corps said in response to Trump's threat, which gave Iran until approximately 7:45 pm ET on Monday to reopen the Strait of Hormuz as the global energy crisis sparked by the illegal US-Israeli war intensified.
Mike Waltz, the US ambassador to the United Nations, declined to rule out a strike on nuclear energy plants in Iran, saying in a television appearance on Sunday that he would "never take anything off the table for the president."
"This is absurd and dangerous," responded Kelsey Davenport, director of nonproliferation policy at the Arms Control Association (ACA). "Bombing a nuclear power plant should be off the table. Period."
Daryl Kimball, the ACA's director, added that "bombing a functioning nuclear power reactor is blatantly illegal."
"Any such order from [the US president] would be illegal and should not be executed by military commanders," Kimball wrote on social media. "Trump and Co. are out of control."
The National Iranian American Council (NIAC) warned Sunday that if Trump follows through with his threat to strike Iranian power plants, "it is likely the US, Israel, and Iran enter a full-scale infrastructure warfare, where electricity systems—essential for hospitals, water supply, communications, and daily life—are treated as targets."
"The consequences of such a shift would likely extend far beyond Iran, risking regional blackouts, economic disruption, and large-scale civilian harm for tens of millions of people," the group wrote in a blog post. "Targeting power plants risks severe humanitarian consequences and invites reciprocal attacks across the region. Strikes near nuclear facilities increase the danger of catastrophic escalation, even if unintended."
Jamal Abdi, NIAC's president, said in a statement that "threatening to bomb Iran’s power plants is a threat to millions of civilians—people who rely on electricity for hospitals, water systems, and basic survival."
"This is not a ‘targeted’ strike. This is collective punishment," said Abdi, calling for an urgent diplomatic resolution. "Targeting power plants, nuclear plants, and desalination plants are war crimes. The president’s endorsement of such acts only threatens to escalate the conflict further and provoke attacks on civilian infrastructure across the region."
Early Monday, power outages were reported across Tehran as the Israeli military announced "a wide-scale wave of strikes" on the Iranian capital.
"Al Jazeera Arabic’s correspondent in Tehran, Suhaib al-Asa, reported that the size and volume of the explosions in the Iranian capital were 'unprecedented,' especially in the eastern side of the city," the outlet noted. "The Iranian air defense systems were activated in the eastern part of the city, al-Asa said, which indicated Iran was responding to US-Israeli drones hovering over that part of the city."
"Food is spoiling. Water supply is compromised. Healthcare services are disrupted," said US Rep. Ilhan Omar. "End the blockade now."
Some Cubans got power back on Sunday after another nationwide blackout on Saturday—the second in less than a week and the third time the grid has collapsed this month after the Trump administration intensified the United States' decades-long economic blockade, cutting off the island nation from Venezuelan oil.
"The Cuban Electric Union, which reports to the Ministry of Energy and Mines, reported that the total disconnection of the national energy system was caused by an unexpected shutdown of a generation unit at the Nuevitas thermoelectric plant in Camaguey province, without providing details on the specific cause of the failure," according to The Associated Press.
Critics from around the world have condemned the US siege as "economic warfare," which is notably occurring as President Donald Trump and his allies in Washington, DC repeatedly float a potential takeover of the country located just 90 miles south of Florida.
Saturday's blackout came a day after The Washington Post reported that "the Cuban government this week refused a request by the US Embassy in Havana to import diesel fuel for its generators, calling the ask 'shameless,' given the Trump administration's fuel blockade on the island, according to diplomatic cables" reviewed by the newspaper.
It also followed the arrival of some members of Nuestra América Convoy, which is bringing humanitarian aid to the island. The effort involves hundreds of people from over 30 countries and 120 organizations.
Highlighting the convoy on social media early Saturday afternoon, US Rep. Delia C. Ramirez (D-Ill.) declared that "Trump's oil blockade in Cuba has caused a worsening humanitarian crisis—cutting Cubans off from power, food, healthcare, and clean water."
"I am heartened by the solidarity and bravery of the courageous people on the Nuestra América Convoy, arriving in Cuba to bring critical aid directly to the people," she said. "I stand with the global community demanding that the Department of State and Department of Defense ensure their safety and security."
Another progressive in Congress, Rep. Ilhan Omar (D-Minn.), similarly said later Saturday that "we must lift the US oil blockade on Cuba. This is economic warfare designed to suffocate an island. Food is spoiling. Water supply is compromised. Healthcare services are disrupted. End the blockade now. Grateful to all those helping deliver humanitarian aid!"
Current Affairs editor-in-chief Nathan Robinson is reporting on the convoy from Havana. On Sunday, he wrote that "when the power went, I was watching a concert held at the Pabellon Cuba, a delightfully strange Brutalist outdoor event space... People can live without music if they have to, I suppose. (The Cubans refuse to, though, and as I walked through the streets tonight I saw plenty of dancing in the dark.) What they cannot live without is healthcare, and the blackout is of course hitting hospitals hard. People aren't able to get crucial surgeries, or even get to the hospital, which means Trump is simply killing the sickest Cubans. Late last night, a report came in that patients on ventilators at the Hermanos Ameijeiras Hospital have died."
"It has been tragic and depressing watching the effects of the blockade. This is already a poor country. People didn't have much to start with. But now they can't take buses, they can't afford to run their cars (I have been told gas costs anywhere between 10 dollars a gallon and 40 dollars a gallon, if you can find it—this in a country where a nice meal will cost you about $20)," Robinson explained. "Food in restaurants is starting to run out. Garbage is accumulating in the streets. I had to sprint to get through a city block where the flies were so thick it was a struggle to breathe without ingesting one. The entire supply chain appears to be breaking down. Tourism is drying up—few want to come and experience shortages and sanitation crises. Taxi drivers can't drive their taxis."
"With the evaporation of tourists comes greater despair, since so many depend on this influx of foreign money. Everyone in Cuba is warm and friendly, but you can tell they're desperate. At the large San Jose art market, sellers had booths overflowing with souvenirs, and hardly anyone was there to buy. The merchants were outcompeting each other on pushiness—it was obvious many of them would not make a single sale all day," the American journalist added. "I cannot believe how cruel what my country is doing is."