Trump Admin Pours Nearly $1 Billion Into Power Grid As Americans Face Rising Electricity Costs
The U.S. Department of Energy announced nearly $967 million in grants to help states, territories and tribes strengthen electrical grids and improve resilience. The funding comes as artificial intelligence data centers drive rapid electricity-demand growth, raising concerns about shortages, blackouts and higher costs, particularly within the PJM Interconnection region.
The U.S. Department of Energy announced approximately $967 million in fiscal 2025 and 2026 funding through the Grid Resilience State and Tribal Formula Grants program. The money will support infrastructure upgrades, backup generation, battery storage and other measures intended to protect power systems from storms, wildfires and outages. Energy Secretary Chris Wright said the investment would strengthen reliability and help lower electricity costs.
The announcement comes amid warnings that data centers could overwhelm regional power supplies. PJM projects about 32 gigawatts of additional peak demand by 2030, with data centers accounting for roughly 94% of that increase, while Pennsylvania regulators have warned of potential supply shortfalls. The Federal Energy Regulatory Commission rejected parts of a PJM proposal to require some large customers to reduce consumption during emergencies, instead approving a registry to track major electricity users.