Workers at the US Department of Energy say cuts and deregulations are undermining the ability for the department to function and will result in significant energy cost hikes for consumers.
Trump’s “big, beautiful bill” will raise energy costs for American households by as much as 7% in 2035 due to the repeal of energy tax credits and could put significant investment and energy innovation at risk, according to a report by the Rhodium Group. The non-partisan think tank Energy Innovation calculated the average US household will see its utility bills rise by over $230 by 2035 as a result of cuts to renewable energy investments.
The rises are being driven in part by cuts to the agency. Trump has proposed cutting the department’s budget by $19.3bn.
More than 3,500 employees at the Department of Energy have reportedly taken delayed resignation buyout offers, though the Department of Energy declined to provide final numbers or an estimate on the departures. Some 43% of its workforce of nearly 16,000 employees was deemed “non-essential”, not including 555 probationary employees that were fired earlier this year.
The US Department of Energy announced on 12 May plans to eliminate 47 regulations, comprising mostly of energy efficiency standards for appliances, claiming the cuts would save nearly $11bn, but did not provide any analysis or data for how it came to that savings estimate.
The Department of Energy estimated in December 2024 that stronger energy efficiency appliance standards would save consumers about $1trn over the next three decades. An analysis by the Appliance Standards Awareness Project found the energy efficiency cuts would add $54bn in utility energy costs.
“The impact of a lot of what I was working on in the energy efficiency and electrification space is aimed at saving folks money. The business case around energy efficiency has been made for the past 30 years. Reducing the cost of energy, any of those fixed costs for folks, can really be life changing, freeing up their budget for other necessities,” said a US Department of Energy employee who requested to remain anonymous for fear of retaliation as they have accepted a resignation buyout offer.
“Changing that has so many effects down the line,” they added. “We already know things are getting more expensive. Budgets are getting tighter for many households in the state, and also territories and tribes. The work that I did was not only with states, but also with us, territories and tribes as well, and a lot of these communities, every dollar matters, and that’s not unique to red or blue areas or anything like that.”
Another employee at the US Department of Energy said morale at the department sank after attacks on civil servants by the so-called “department of government efficiency” (Doge) and the chaos and uncertainty of the firings of probationary employees, contractors, and employees resigning, leaving a drain on resources, talent and knowledge throughout the agency.
“Appointees came in with a clear agenda to dismantle programs and shrink staff,” they said. “It is very clear they don’t care about the work or the workforce. Many were looking to score points with Doge and made quick cuts without concerns for long-term damage, such as the chaos and lost knowledge caused by the delayed resignation program.”
A former senior Department of Energy official who requested to remain anonymous explained the totality of the cuts to personnel, grants, regulations, and budget for the department are “going to increase prices on everybody”.
“As much as the election was on affordability, there’s a reason that Trump is doing incredibly poorly on affordability and inflation. I think what’s happening at the Department of Energy is just such a great example of a whole variety of efforts that near-term, medium-term and longer-term are going to raise prices on consumers, on companies, and make us less competitive internationally,” they said.
“The efficiency regulations end up saving consumers an awful lot of money, certainly as a percentage of their budget. I don’t think there is any truth whatsoever, if you talk to anyone who’s ever done analysis and rigor on this, that somehow not doing these regulations is actually saving money. It’s the exact opposite if you think of the whole system.”
They also criticized the fact that many of these actions will result in lawsuits and legal changes, and the negative impacts of research and development cuts to renewable energy.
They cited the demand for energy to power emerging AI and data centers and energy consumption is expected to rise significantly and wind, solar, and battery energy storage are relatively quick and cheap to construct.
About 96% of added US energy capacity to the grid in 2024 was from carbon-free sources.
“If you stop any research for next generation solar or battery technology, or wind or geothermal or other pieces, what you’re effectively doing is compromising a huge range of technology that has the potential to reduce costs, and of course, has the potential to reduce greenhouse gas emissions. But even if you don’t care about that, these are the technologies that could reduce costs for consumers,” they added. “The chaos with the tariffs, with the regulations, with the not fully thought through and analyzed nature of this is just causing a lot of confusion, a lot of incoherence, a lot of inconsistency and uncertainty. And that’s just not good for businesses, let alone consumers.”
A spokesperson for the US Department of Energy refuted claims of costs due to eliminating regulations.
“President Trump and Secretary Wright pledged to restore commonsense to our regulatory policies and lower costs for American consumers – that is exactly what these deregulatory actions do. To argue consumers benefit from being forced to purchase more-expensive, time-intensive products that are often less energy efficient because they don’t do the job right the first time is total nonsense,” they said in an email. “DOE’s approach recognizes that consumer choice and market-driven innovation, not bureaucratic mandates, lead to better-performing and more affordable consumer products. DOE’s deregulatory actions empower consumers to choose products that meet their needs and budgets, while also supporting American manufacturers.”
