Electricity Rates Surge Across U.S. as Gas Prices Soar

Residents in a dozen states see at least a 10% jump in electricity costs in 2025, compounding pain of rising fuel prices

Mar. 18, 2026 at 1:28am

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Electricity rates 'increased significantly' in nearly every U.S. state in 2025, with residents in a dozen states seeing at least a 10% jump, according to a congressional report released by Democrats. The analysis came amid other gloomy economic headlines, including a steep increase in gasoline prices since the U.S.-Israeli war in Iran began, and a lousy jobs report last month.

Why it matters

The surge in electricity and gas prices is a major economic burden on American households, with affordability emerging as a key issue ahead of the 2026 midterm elections. Democrats have criticized President Trump for failing to deliver on his campaign promise to slash energy costs, which he has dismissed as a 'hoax'.

The details

The report from the Joint Economic Committee showed that on average, American households paid roughly $110, or 6.4%, more for electricity in 2025 compared to 2024. States that saw the highest spikes included New Jersey (16.9%), Indiana (16.3%), Illinois (15.9%), and the District of Columbia (23.5%). Rates dropped in a handful of states like Nevada (-18%), California (-3.1%), and Hawaii (-2.4%).

  • Electricity rates increased significantly across the U.S. in 2025 compared to 2024.
  • The report was released by Democrats on the Joint Economic Committee in March 2026.

The players

Joint Economic Committee

A congressional committee that released a report on the surge in electricity rates across the U.S. in 2025.

President Donald Trump

The President who had promised to slash electricity costs during his campaign, but has been criticized for failing to deliver on that pledge.

Sen. Maggie Hassan

The ranking member of the Joint Economic Committee who criticized President Trump for the rising energy costs hurting American families.

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What they’re saying

“American families don't need a report to tell them that the President has broken his campaign promise to slash energy costs; they already feel the impact of President Trump's actions every single day. But this report is yet another indication that sky-high costs are continuing to rise — and are continuing to hurt American families.”

— Sen. Maggie Hassan, Ranking Member, Joint Economic Committee

“It's a big deal; it's going to have a tremendous impact on electricity costs... Under this new agreement, Big Tech companies are committing to fully cover the cost of increased electricity production required for AI data centers — and that would mean prices for American communities will not go up, but in many cases, will actually come down.”

— President Donald Trump

What’s next

The report's findings are likely to fuel further political debate over energy policy and affordability ahead of the 2026 midterm elections.

The takeaway

The surge in electricity and gas prices is putting a major financial strain on American households, underscoring the need for policymakers to address the root causes of rising energy costs and deliver on promises of affordable and reliable energy for consumers.