Heating Costs Set to Surge This Winter, Leaving Millions Struggling
This winter, Americans are facing a sharp increase in heating bills. Colder weather combined with rising energy prices is expected to push costs higher across the country.
At the same time, federal support for low-income families is down due to this year’s budget cuts by the Trump administration. The Low-Income Home Energy Assistance Program (LIHEAP) has been cut by roughly one-third compared with two years ago, meaning only about 17% of eligible households currently receive help. Millions of families are left with fewer options as heating costs climb.
The average household will likely spend close to $1,000 to heat their home, an increase of about 9.2% compared with last year, according to the National Energy Assistance Directors Association, which represents state energy officials.
Why costs are rising
- Electricity and natural gas prices have climbed steadily in recent years.
- Colder-than-usual forecasts in many regions mean more energy is needed to keep homes warm.
- Utilities are investing heavily in repairing aging grids, preparing for extreme weather, and expanding capacity to meet growing electricity demand — including the energy needs of AI data centers.
Since 2021, the average cost of electricity per kilowatt-hour has risen nearly 30%, outpacing general inflation. A typical household now spends about $181 per month on electricity, up 7% from last year.
Who is most affected
Families already struggling to pay bills are at greatest risk. Energy assistance officials warn that more households could fall behind on payments or face service shutoffs simply because they cannot afford to heat their homes. Utilities disconnected 3.5 million accounts in 2024, and that number could reach 4 million this year.
Households can expect different increases depending on their heating method:
- Electric heat: costs rising about 12%
- Natural gas: costs rising about 8%