Trump’s 18-Month Electricity-Price Promise Missed as Rates Climb 18 %

President Donald Trump pledged on the campaign trail to halve residential electricity prices within 18 months of his January 2025 inauguration. The deadline arrived in April 2026, but the Energy Information Administration shows rates have risen 18 % since the start of his term and 7.3 % between April 2025 and April 2026—about twice the inflation rate. Utility-rate filings for the second quarter of 2026 indicate utilities asked state regulators for $9.2 billion in rate hikes, a 26 % increase over the same period a year earlier. PJM Interconnection’s 2028-2029 capacity auction cost $16.4 billion, matching the previous record and cementing high rates for consumers.

Reason

The surge follows a “slow-moving train crash” of unprecedented load growth from the data-center boom and the retirement of coal and natural-gas plants. Trade policies have also raised costs: tariffs on transformers from Mexico and China, a former 147 % import tax on Chinese goods, and duties on electrical steel from South Korea, India and Japan—though the Supreme Court struck the latter tariffs, consumers still bear related expenses. The administration’s offshore-wind stance—blocking leasing in federal waters, then paying developers to abandon projects—removed a potential source of cheaper power. Data-center electricity use added $6 billion to PJM’s auction, prompting New York Governor Kathy Hochul to impose the nation’s first data-center moratorium.

Reason

In March, the White House introduced a Ratepayer Protection Pledge urging signatories to front costs for grid upgrades, water infrastructure, and data-center power. Senator Tom Cotton (R-Ark.) later introduced legislation to let large-load customers connect directly to unregulated power plants. New Hampshire has already adopted rules resembling a Consumer Regulated Electricity model.

Reason

Energy policy analyst Travis Fisher argues the promise was “an impossible promise to deliver on because there really isn’t that much federal government involvement in retail rates.” He also criticizes offshore-wind subsidies and suggests a Consumer Regulated Electricity framework as a “nimble and innovative” hedge against political risk.

Reason

• “It was an impossible promise to deliver on because there really isn't that much federal government involvement in retail rates,” — Travis Fisher, Director, Energy and Environmental Policy Studies, Cato Institute

Reason

• “it pretty much only gets built with subsidies and mandates,” — Travis Fisher (on offshore wind)

Reason

• “substantial downward pressure” — Travis Fisher (on potential impact of offshore-wind plants)

Reason

• “hedge against the political risk” — Travis Fisher (on Consumer Regulated Electricity)

Reason