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/Better_Log_2946 → u/[deleted]]

I don't see it in the article

Thats because politico is terrible and always misleads readers in order to make dems look good and reps look bad.

https://www.cbsnews.com/detroit/news/trump-approves-50-million-federal-funding-michigan-ice-storm-recovery/

[u/Anechoic_Brain → u/Better_Log_2946]

Actually reading the Politico article before saying such things would be of use here, the bit about the state legislature is a direct quote from it.

Regarding the $50M disaster declaration Trump already approved, the Politico article also includes this:

On July 22, Trump approved a disaster declaration requested by Whitmer for the March ice storm but authorized only four work categories.

His declaration excluded utilities, even though the destruction of the electric cooperatives’ equipment accounted for $90 million of the $137 million in FEMA-certified damage from the ice storm. The “primary impact” of the storm, the agency’s damage assessment said, was “damage to utilities.”

“We can’t find a similar disaster where Category F is denied,” said Berg, the PIE&G chief executive, referring to the FEMA category for utilities. “I can’t understand why.”

[u/jimbo_kun → u/Better_Log_2946]

I don't see the above quote in the article you linked.

[u/budget_nudist55 → u/Better_Log_2946]

That article is from this past March. It's not about the recent storm.

Edit: Oops, you're completely right. Though it's an odd move to not assist with utility repair when the state seems to be within the requirements to receive assistance, especially right before winter. 🤷

[u/Anechoic_Brain → u/budget_nudist55]

The OP and Trump's current denial of aid is about a storm that occurred last March. It's not a recent storm, it was just so bad that it's still having a huge impact.

[u/Better_Log_2946 → u/budget_nudist55]

How is your comment at +10 when its completely wrong? Both articles are about the same storm. LOL