This article was originally published on Crafting Your Home. A human contributor also wrote and edited the post.
Electricity prices were 5.9% higher in May 2026 than one year earlier, leaving American households with another rising expense as President Donald Trump approaches the final deadline for one of his biggest campaign promises. The broader electricity price index has climbed nearly 9% since he returned to office on January 20, 2025, moving from 281.888 to 307.226. Electricity costs increased 5.9% during the latest 12-month period.
Trump told voters in 2024 that his administration would halve household energy prices within 12 months, or within 18 months at the latest. That extended deadline arrives around July 20, 2026. Instead of falling by 50%, electricity prices have continued moving in the opposite direction.
For families, this is more than a broken political talking point. Electricity keeps refrigerators running, powers medical equipment, cools homes during dangerous heat, and allows millions of Americans to work, study, and communicate from home.
The bill tells the story.
The average residential electricity rate reached 18.83 cents per kilowatt-hour in April 2026, up 7.3% from April 2025. Across residential, commercial, industrial, and transportation customers, the average national electricity price increased 6% over the same period.
The consumer price index and the average retail rate measure different parts of the electricity market, but both point toward the same conclusion. American consumers are paying more for power, not dramatically less.
Political criticism has sometimes cited a 16% increase since Trump’s inauguration. The latest national figures do not support that precise claim. The electricity price index rose approximately 9% between January 2025 and May 2026, while the residential retail rate increased 7.3% during the most recent year measured.
That correction does not rescue Trump’s promise. A 9% increase remains far removed from a 50% reduction, especially for households already facing higher costs for insurance, housing, groceries, and transportation.
Demand is outrunning supply.
Trump inherited an electricity market under pressure from forces that no president can reverse quickly. Artificial intelligence facilities, cloud-computing campuses, semiconductor plants, factories, and expanding electrification are forcing utilities to prepare for demand levels they did not anticipate several years ago.
National electricity consumption grew by an average of 2.1% annually during the five years leading into 2026. The country is now experiencing its strongest four-year demand growth since 2000, with data centers playing an increasingly important role.
Servers inside data centers require enormous amounts of continuous power. They also need transmission lines, substations, backup systems, and generating capacity capable of operating during peak-demand periods.
Long-term forecasts identify data-center computing as the dominant driver of electricity growth across the commercial sector. Server electricity consumption could range from 446 billion to 818 billion kilowatt-hours by 2050, depending on technology adoption and future demand.
Washington still shapes prices.
Presidents do not directly set most retail electricity rates. Utilities submit proposed increases through state regulatory systems, where commissions examine operating expenses, infrastructure investments, and the amount companies may recover from customers. State regulators oversee pricing in traditionally regulated electricity markets.
Federal decisions still affect how quickly new power plants, transmission projects, and storage facilities can enter service. Washington also controls tax incentives, federal land permits, environmental reviews, grants, and financing programs that can change the cost of developing new electricity supplies.
Trump’s 2025 tax law accelerated the expiration of two major residential energy incentives. The residential clean-energy credit and energy-efficient home improvement credit became unavailable for qualifying expenses after December 31, 2025. The law ended two household credits that had helped homeowners offset the cost of solar systems, insulation, efficient windows, and other improvements.
The administration also terminated 321 financial awards connected to 223 energy projects, eliminating approximately $7.56 billion in planned federal support. Officials concluded that the projects lacked sufficient economic value, did not adequately advance national energy needs, or failed to provide taxpayers with an acceptable return. The decision terminated 223 energy projects across multiple states.
Canceling weak or wasteful projects can protect taxpayers. However, eliminating planned generation, storage, and grid improvements without rapidly replacing the capacity they would provide can tighten electricity supplies during a period of rising demand.
Who pays for artificial intelligence?
The expansion of artificial intelligence has created a new affordability question that neither party has fully answered. When a technology company requires a new power plant or transmission upgrade, regulators must determine whether the company, the utility, or the wider customer base will cover the cost.
Allowing utilities to collect funds for major projects before construction is complete can shift near-term costs onto households and small businesses. Regulatory decisions in several states have allowed customers to begin paying for infrastructure years before promised benefits may appear. Customers face earlier charges.
Trump has said large technology companies should build their own plants and avoid shifting their electricity costs onto ordinary consumers. The announcement recognized a real threat to affordability, but major questions remain about enforcement, timelines, and what happens when privately built facilities rely on the public grid.
The deadline will bring scrutiny.
Fresh inflation figures scheduled for July 14 will provide another test of the direction of electricity prices. Trump’s maximum 18-month deadline follows less than a week later. No realistic monthly change could transform the current increase into the promised 50% reduction. The question is no longer whether Trump will meet the original target. It is whether his administration can show that its policies are adding enough affordable electricity to slow future increases.
They have a simpler measure. They can open their monthly utility bills and compare what was promised with what they are actually paying.
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