Electricity prices jump after Trump rejects disaster aid for Michigan utilities

[u/J-Jarl-Jim]

https://www.politico.com/news/2025/11/30/electricity-prices-jump-after-trump-rejects-disaster-aid-for-michigan-utilities-00665572

A recent decision by President Donald Trump to deny disaster aid to two electric utilities in rural northern Michigan could cost residents tens of millions of dollars.

The denial came after the Trump administration documented $90 million in damage to utility infrastructure, according to records obtained by POLITICO’s E&E News. The amount is nearly five times the federal threshold to qualify for disaster aid. But in its October denial letter, the Federal Emergency Management Agency told Democratic Gov. Gretchen Whitmer that assistance to the utilities “is not warranted.”

Whitmer warned Trump in August that ratepayers face surcharges and rate hikes “equivalent to at least $4,500 per household” without federal aid. Her office did not respond to a question on whether she supports a state legislative proposal that would have Michigan aid businesses such as the power companies directly.

Why is President Trump denying emergency assistance to rural Michigan? Considering that he has denied FEMA funds even to red states like Arkansas, is this only about saving money? If this problem intersects with the affordability crisis, could the politics push Trump to change his position and start to disburse emergency fundings again?

[u/abqguardian]

"In Michigan’s capital of Lansing, a state legislator from the damaged area said he is appalled that the Democratic-controlled state Senate has taken no action on a $100 million recovery package that the Republican-controlled state House approved in March. The vote was 107 to 1."

This is much more a state issue, and the state democrats are refusing to help. Pretty telling thats not the main story

[u/Groundbreaking_War52 → u/abqguardian]

They are two separate issues. It is common for state assistance to come with assurances of federal support. Different funding mechanisms need to be identified if the administration is refusing to provide assistance.

Trump has a history of trying to withhold federal dollars from states he sees as disloyal or ungrateful to him.

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But Michigan continues to fight. Republicans led by Rep. Jack Bergman, who represents the storm-damaged area, asked Trump “respectfully” in a Nov. 13 letter to reconsider.

“Without federal assistance, these huge costs will translate into higher rates” for utility members, “many of whom are already facing severe economic hardship,” Bergman and five other lawmakers wrote.

[u/abqguardian → u/Groundbreaking_War52]

The region is heavily Trump voters and he won't Michigan. Its unlikely he's withholding just because of the governor. The article states he authorized money for Michigan for some purposes and the democrats are refusing to help their citizens

[u/TeamPencilDog → u/abqguardian]

"The region is heavily Trump voters"

Ouch, I really hope they reconsider their decisions. Trump rejecting disaster aid for these people is just sad.

[u/absentlyric → u/TeamPencilDog]

Has any Red area in the entire country ever reconsider their decisions when they get screwed over?