Why Americans behind on utility bills may freeze if shutdown doesn't end soon Medora Lee, USA TODAY October 27, 2025 at 10:11 PM 2 With winter certainly coming but no clear path yet to ending the government shutdown, states are sending out a SOS to keep millions of Americans from freezing soon.
- - Why Americans behind on utility bills may freeze if shutdown doesn't end soon
Medora Lee, USA TODAY October 27, 2025 at 10:11 PM
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With winter certainly coming but no clear path yet to ending the government shutdown, states are sending out a SOS to keep millions of Americans from freezing soon.
The National Energy Assistance Directors Association (NEADA), representing state directors of the Low-Income Home Energy Assistance Program (LIHEAP), said last week it's urging electric and gas utilities nationwide to immediately suspend service disconnections for nonpayment until federal LIHEAP funds are released and households regain access to financial assistance.
House Representative Don Beyer (D-VA) and 53 other representatives also penned a letter to major utility companies to suspend late penalties and utility shutoffs for federal employees and contractors while the government is closed. Environmental nonprofit Sierra club joined the pleas for utilities to keep the power on for low-income Americans.
The shutdown, which began Oct. 1 and is on pace to become the longest government shutdown in U.S. history, has delayed the release of energy aid, leaving some of the nation's poorest families without the support they rely on to heat their homes as colder weather approaches, NEADA said. At the same time, electricity and natural gas prices have risen sharply, placing additional strain on already stretched household budgets, it said.
"The situation is really grim regarding (rising energy) pricing and availability of LIHEAP funds," said Mark Wolfe, NEADA's executive director. "Even if all goes well now, the earliest we will see funds will be December."
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How many Americans are behind on utilities bills?
About 21 million households, or one in six, are behind on their energy bills, NEADA data showed. Since Dec. 31, 2023, household energy averages have risen by about 31%, from approximately $17.5 billion to $23.0 billion by June 30, 2025.
Shut offs rose to 3.5 million in 2024 from 3.0 million the prior year, NEADA said. Shut offs are expected to continue rising as more Americans face soaring energy costs they can't afford, it said. NEADA said 2025 could see potentially 4.0 million shut offs.
Why are more people falling behind on utilities bills?
Energy prices are soaring, with electricity bills climbing on utility investment in transmission and distribution systems, the cost of natural gas used to power generation rising, and rapid growth in large data centers increasing demand for electricity. Through July, electricity prices rose 9.5%, outpacing overall annual inflation of 3% in September, NEADA said.
NEADA forecasts the average cost of home energy will increase 7.6% this winter, led by a 10% jump in electricity costs to $1,205 from $1,093 a year ago. That's on top of average summer bill prices reaching $776, the highest in at least 12 years, creating a strain on household budgets.
"No family should be forced to choose between heat and food because of a federal funding delay," Wolfe said. "Utilities must act in the public interest and pause shutoffs until federal aid is available again."
Tuesday Adams of Cathedral City shows her $20,000 SCE bill in Desert Hot Springs, Calif., June 25, 2025.Where are the largest price increases?
Ten states, plus the District of Columbia averaged more than a 15% price jump in electricity costs, with five states registering more than 20% increases, between July 2024 and July this year. Americans in these states are seeing monthly bill increases of between $25 and $41 per month.
Here are the places with the largest percentage increases:
Illinois: 28.3%
Indiana: 25%
Ohio: 23.4%
DC: 23%
New Jersey: 20.6%
Massachusetts: 18.8%
Iowa: 17.4%
Missouri: 17.2%
Michigan: 15.9%
Virginia: 15.4%
Maine: 15%
Medora Lee is a money, markets and personal finance reporter at USA TODAY. You can reach her at [email protected] and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.
This article originally appeared on USA TODAY: Government shutdown may force many Americans to pick food or heat
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