Energy Department Staff Warn: Budget Cuts and Deregulation Could Spike Consumer Costs
Staff at the U.S. Department of Energy are raising red flags, warning that recent funding reductions and widespread regulatory rollbacks are seriously undermining the agency’s effectiveness — and could lead to noticeable hikes in energy bills for American families.
A fresh report from the Rhodium Group reveals that Trump’s energy policy changes, including the elimination of clean energy tax incentives, could cause household energy expenses to rise by up to 7% by 2035. These actions also place critical clean energy investments at risk. Additionally, research from Energy Innovation, a non-partisan policy firm, projects that typical U.S. households could face an average increase of $230 in utility bills by 2035, largely due to reduced support for renewable energy projects.
One major factor: the former president has proposed a $19.3 billion reduction to the Energy Department’s funding. Internally, the department is already feeling the pressure. Over 3,500 employees are believed to have taken voluntary buyouts, and nearly half of the workforce — about 43% — has been labeled “non-essential.” This number excludes the 555 probationary workers who were terminated earlier in the year.
On May 12, the department announced plans to eliminate 47 federal regulations, most of them related to appliance energy efficiency. Officials claimed the cuts would result in nearly $11 billion in savings, but failed to provide data or analysis supporting that figure.
Just months earlier, in December 2024, the department itself had projected that updated efficiency standards for appliances could help consumers save $1 trillion over the next 30 years. In contrast, a study by the Appliance Standards Awareness Project found that removing these standards would actually cost consumers an additional $54 billion in energy expenses.
“The work I did was all about helping people cut energy costs,” said one Energy Department employee who chose to remain anonymous after accepting a buyout. “Energy efficiency isn’t just a policy idea — it directly saves families money. When energy becomes more affordable, it opens up room in people’s budgets for basic needs.”
They added, “Prices are rising across the board, and families — especially in states, U.S. territories, and tribal areas — are feeling the squeeze. Every single dollar matters in those communities, no matter their political leanings.”
Another employee spoke to the internal fallout, pointing to deteriorating morale across the agency. They blamed political appointees and the so-called Department of Government Efficiency (Doge) for pushing a disruptive agenda. “It was obvious they came in to shrink the workforce and dismantle programs,” the employee said. “There was no concern for the long-term impact. It was about quick wins, not smart policy.”
A former high-level official echoed these concerns, warning that the combination of staff reductions, grant eliminations, regulatory cuts, and budget constraints will lead to higher prices for everyone. “The public was told this election was about bringing down costs,” the official said. “But these moves are going to do the exact opposite — driving up costs for consumers, making it harder for businesses, and weakening America’s global energy leadership.”
They added, “Efficiency standards don’t cost people money — they save it. Anyone who understands the data knows that repealing these rules is financially reckless.”
The former official also pointed out the long-term risks, such as a wave of lawsuits, delays in innovation, and cutbacks to clean energy research. With energy demands rapidly rising — especially from AI technology and data centers — they stressed the need for fast, scalable solutions like solar, wind, and battery storage. In fact, nearly 96% of all new energy capacity added in 2024 came from carbon-free sources.
“If we walk away from developing next-gen solar, battery, wind, and geothermal tech, we’re turning our backs on cost-saving innovations,” they said. “Even if you don’t care about the climate, these are the tools that could help consumers pay less. But what we have now is a storm of regulatory chaos, tariff confusion, and poorly planned policy changes. That’s bad for everyone — from homeowners to big energy investors.”
The Department of Energy, however, defended its actions. A spokesperson said in an email that the current direction is focused on lowering costs through deregulation, not raising them.
“President Trump and Secretary Wright are committed to restoring sensible regulation and giving Americans more choices,” the spokesperson said. “It’s ridiculous to suggest that forcing consumers to buy expensive and ineffective products is somehow a benefit. Our approach puts the power in consumers’ hands, letting them pick products that meet their needs and budgets, while also supporting domestic manufacturers.”
Description:
"Discover how deep budget cuts and deregulation at the U.S. Department of Energy under Trump’s administration could drive up household energy bills, slow clean energy innovation, and impact American families. Learn what experts, insiders, and reports are saying about the future of energy efficiency, utility costs, and U.S. competitiveness in the global energy market."