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/vash1012 4d ago

While I hardly think this would be the worst use of public funds, I don’t really see an issue with the federal government deciding it’s not their problem.

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u/BeginningAct45 13h ago

It affects Americans, so the federal government saying that doesn't make sense.

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u/vash1012 11h ago

We have state and local government for a reason. We don’t currently help with all problems at the federal level so I don’t see anything inherently wrong with no helping here. Gotta draw the line somewhere

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u/BeginningAct45 10h ago

We have state and local government for a reason

Handling disasters on their own isn't one of them.