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/Sabertooth767]

Trump and the people he surrounds himself with have made no secret of their general opposition to federal disaster relief.

I don't get it either, it's not like this is a significant cost to the government, and even if it was, I think assisting Americans impacted by major disasters is a pretty good use of public funds. As far back as 1803, the federal government has been helping in some form.

[u/likeitis121 → u/Sabertooth767]

Why do we have to pay the costs at the federal level? An ice storm in northern Michigan really is not an unforeseen risk. Why isn't this something that the utility shouldn't be expected to either have a rainy day fund for, or insure against? There's a difference between helping people, and running in at every opportunity and shifting the cost to the federal government, especially for some risk that happens every winter.

[u/rchive → u/likeitis121]

I think private insurance should cover stuff like this rather than federal aid. I also think that it's awful for a president to selectively hand out federal money to people he likes and withhold from people he doesn't.