5 Ways Trump’s Energy Policies Could Impact Your Monthly Budget

©Ron Sachs/CNP / SplashNews.com

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

During his presidential campaign throughout 2024, then-candidate Donald Trump promised to cut American energy and electricity costs in half by the beginning of 2026. A recent report from The Guardian, however, has found that American electricity bills have actually increased during President Trump’s second administration — and have risen by 11% since January 2025.

That figure of 11% comes from the U.S Energy Information Administration (EIA), which has found that President Trump’s efforts to return to fossil fuels is actually increasing energy costs, rather than lowering them. Further, the president’s rejection of inexpensive power generation, such as solar and wind, has created deficits in America’s energy supply.

While so much of that may seem like large political chess pieces and Washington, D.C., maneuvering, the cost of energy has a palpable impact on the average American — a presidential administration’s energy policies dictates just how much you pay monthly for electricity, gas, travel and many other aspects of life. In fact, President Trump’s energy policies can have a definitive impact on your monthly spending budget. Read on to find out how.

Higher Electricity Bills

As noted, electricity bills in America have increased by 11% throughout 2025 — that’s a hike that is larger than the general arc of America’s inflation rate. Most of this is due to the Trump administration’s rollback of incentives and subsidies for energy efficiency and for renewables, two things which had previously kept energy costs reduced. By dissolving governmental support for clean energy, Trump’s policies have, at least in the short-term, led to higher electricity costs for the average household.

For You: How Middle

Higher Natural Gas Bills

The Center for American Progress (CAP) reported that, as of October 2025, 49 states in the union are experiencing increased natural gas bills as a result of the Trump administration rather aggressively expanding America’s liquefied natural gas exports. Doing so connects domestic natural gas prices to the global demand for natural gas and decreases America’s supply. This has led to increased natural gas costs for the average American household, thereby increasing natural gas bills.

Higher Transportation and Gasoline Costs

Per Reuters, the Trump administration is pushing to reduce federal fuel economy requirements for new cars and light trucks. This would reduce fuel economy by 2031 from approximately 50 mpg to approximately 34.5 mpg. This would increase monthly spending on fuel for transportation, as fuel economy would significantly decrease, leading drivers to purchase more gas for their average drives. While the reduction in fuel economy might lower the overall cost of vehicles, it will greatly increase the cost of gas and travel.

Overall Increased Cost of Goods and Services

As CAP noted, the Trump administration’s move away from clean energy and its drive to heighten America’s reliance upon fossil fuels, will increase overall costs in a myriad of fields, from manufacturing to distribution to transportation. Every major American industry requires energy and electricity to function and if their energy costs increase, those costs will in most cases be passed down to the consumer via higher prices for goods and services. For example: higher energy expenses can increase a company’s manufacturing costs, which can then lead to price hikes of the retail goods that company produces, thus forcing you to pay more monthly in the checkout line.

Less Long-Term Savings From Energy-Efficient Investments

CAP also reported that the Trump administration’s mandate to reduce renewable energy and to roll back clean energy tax incentives will drive the upfront costs of renewable energy housing upgrades (such as solar panels, home insulation and energy-efficient appliances) to increase. Without those tax incentives and credits, the investments in renewable energy already made by many American households will not pay for themselves and keep energy costs high.

Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.

Share This Article: