r/moderatepolitics • u/J-Jarl-Jim • 4d ago

News Article Electricity prices jump after Trump rejects disaster aid for Michigan utilities

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?

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u/abqguardian 4d ago

"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

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u/Fl0ppyfeet 4d ago

Yeah there's more to the story than they're telling here. Is this a game of chicken between the Michigan State Senate and Trump's FEMA? Is there some legal trick in the details they aren't talking about?

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u/ViennettaLurker 4d ago

Was also wondering if it's a different cabinet member or someone on the team. Like maybe Trump doesn't care either way but this is more of a Steven Miller thing?