Budget Bill to Increase Energy Costs and Emissions

A new analysis from the Rhodium Group reveals that the sweeping budget bill signed by President Donald Trump will lead to higher electricity bills, fewer renewable energy installations, and increased greenhouse gas emissions. According to the economic consulting firm, average household energy expenses are projected to rise between $78 and $192 by 2035, driven by higher gasoline prices and fewer electric vehicles on the road. Additionally, installations of new clean electricity projects, such as wind and solar, are expected to drop by 57-62% over the next decade, resulting in a rise in planet-warming pollution.
The modeling shows that the U.S. is now on track to reduce emissions by 27-44% below 2005 levels by 2035, down from a previously projected range of 38-56% reductions. Last year, the country had already achieved a 20% reduction in emissions compared to 2005 levels. The wide range in projections reflects varying assumptions about economic factors, including natural gas prices, renewable costs, and electricity demand growth.
The findings underscore the bill’s significant impact on the energy sector, with implications for both household budgets and the nation’s climate goals.

Published: 7/14/2025