President Donald Trump pledged on the campaign trail to cut electricity prices in half within 18 months of returning to office, promising to use executive authority to bring down costs. That self-imposed deadline is July 20, 2026.
Speaking at a rally in Asheville, North Carolina on Aug. 14, 2024, Trump said he would issue an executive order instructing every cabinet secretary and agency head to "use every tool and authority at their disposal to defeat inflation and bring consumer prices rapidly down." [1]
But despite the administration's efforts to boost domestic energy production, including reviving coal and expanding drilling, the promised reduction in electricity costs has not materialized. According to the Energy Information Administration, residential electricity rates from January 2025 to April 2026 rose 18%, with a year-over-year increase of 7.3% from April 2025 to April 2026 – about twice the rate of inflation.
Limited Federal Control Over Retail Rates
Travis Fisher, director of energy and environmental policy studies at the Cato Institute, said the promise was "an impossible promise to deliver on because there really isn't that much federal government involvement in retail rates." Retail electricity prices are determined by fuel costs, local distribution infrastructure and state regulatory decisions – not federal action. The Federal Energy Regulatory Commission sets rules for interstate transmission and wholesale markets, but states retain authority over most costs that appear on consumer bills.
According to a report in Utility Dive, utilities in the second quarter of 2026 asked state regulators to approve $9.2 billion in rate hikes, up 26% from $7.3 billion in the same period last year. This illustrates the limited leverage the White House has over local utility commissions that approve rate increases.
Trade and Energy Policies Add Costs
Trump's trade war increased costs for imported transformers and electrical steel, with tariffs reaching 147% on goods from China before the Supreme Court struck down reciprocal tariffs. Morningstar warned that these duties "directly threaten the ambitious agenda to upgrade and expand the U.S. power grid." Even after the court ruling, a 15% tariff on some electrical grid equipment remains in place, according to Utility Dive.
The administration also blocked offshore wind leasing and later paid developers nearly $1 billion to abandon projects – steps that Fisher said could have applied "substantial downward pressure" on wholesale prices. Meanwhile, forced retention of some coal power plants has left consumers footing the bill. The Trump administration announced $850 million to modernize coal capacity and build two new plants, but critics argue this amounts to an unnecessary subsidy for an uncompetitive industry. [3] [2]
Data Center Demand Strains the Grid
Data center electricity use added $6 billion to PJM Interconnection's latest capacity auction, which tied a record high at $16.4 billion. The surging demand from artificial intelligence and cloud computing has driven up wholesale power costs across the Eastern grid. According to a report by the North American Electric Reliability Corp., electricity demand is projected to increase over the next decade by 70 percent more than 2024 estimates. [4]
States including New York and Maine have imposed moratoriums or restrictions on data centers in response to rising costs. New York Gov. Kathy Hochul issued the nation's first statewide data center moratorium in July 2026, citing strain on the grid and rising utility bills. [5]
In March, Trump unveiled the Ratepayer Protection Pledge, requiring large tech firms to front the cost of grid upgrades. The pledge has had limited impact so far, but Sen. Tom Cotton (R-AR) introduced a bill to allow data centers to connect directly to unregulated power plants – a Consumer Regulated Electricity (CRE) model that some experts say could provide relief.
Outlook and Alternatives
Despite Trump's campaign promise, the 18-month deadline passed without a reduction; rates instead climbed 18%. Multiple factors – limited federal control, trade tariffs, offshore wind policies and surging data center demand – contributed to the outcome. Proposed solutions like CRE and the Ratepayer Protection Pledge may provide future relief, but officials and analysts do not expect a 50% reduction in the near term.
High electricity costs have real human consequences. As noted in the book "Green Fraud" by Marc Morano, the 2019 National Bureau of Economic Research study “Inexpensive Heating Reduces Winter Mortality” concluded that “when US home heating costs fell, fewer people died.” [6]
Additionally, supply chain vulnerabilities highlighted in Newt Gingrich's "Beyond Biden" underscore the broader risks of relying on imported grid components. [7] The complexity of electricity pricing means no single policy lever could have delivered the pledged cut, and consumer relief remains uncertain.
References
- NaturalNews.com. "Trump vows to fight inflation and cut energy costs if reelected". NaturalNews.com. August 19, 2024.
- Willow Tohi. "Reviving coal: A central pillar of Trump's energy policy". NaturalNews.com. October 3, 2025.
- Robert Walton. "DOE announces $850M to modernize US coal capacity, build 2 new plants". Utility Dive. June 5, 2026.
- NaturalNews.com. "Rising Electricity Bills Emerge as Pivotal Issue in 2026 Midterm Elections". NaturalNews.com. May 24, 2026.
- 100percentfedup.com. "President Trump Issues Statement After New York Enacts First Statewide Data Center Moratorium". 100percentfedup.com. July 15, 2026.
- Marc Morano. "Green Fraud: Why the Green New Deal Is Even Worse than You Think".
- Newt Gingrich. "Beyond Biden: Rebuilding the America We Love".
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