What's driving up your expenses? Many Americans say climate change.

For many years, American politicians have hesitated to address climate change and reduce carbon dioxide emissions, fearing the costs might be transferred to their constituents. Ironically, their inaction on fossil fuel emissions has led to the same outcome: Rising expenses for average Americans due to more severe flooding, fires, and heat.

“What’s striking is that already, households are bearing serious costs,” said Kimberly Clausing, a law professor at the University of California, Los Angeles. She co-authored a paper from earlier this year finding that families were paying between $400 and $900 more each year because of the effects of climate change, with the costs above $1,300 in the 10 percent hardest-hit counties, many of them found in Florida, Louisiana, Nebraska, Colorado, and California.

On Wednesday, the Commerce Department reported that the annual inflation rate reached 4.2 percent in May, the highest rate in three years. Though the war in Iran is mostly responsible for this recent increase, a surprising number of Americans are attributing the general economic pinch they’re feeling to the changing climate. Two-thirds of U.S. voters agree that global warming is affecting the cost of living to some degree, according to new survey data from the Yale Program on Climate Change Communication, including most Democrats and moderate Republicans. Of those two-thirds, a majority of them said that climate change was driving up what they pay for groceries, utility bills, and home insurance.

Rising energy prices were at the top of people’s lists, a concern that some climate advocates are tapping into ahead of the midterm elections this November. On Monday, the LCV Victory Fund, a political action committee, announced that it will target “energy bill voters” with messages about how clean, affordable energy can trim their monthly expenses, and how Republicans have held back renewable power. That follows successes for Democrats in the off-year elections in 2025, where energy prices played a role in state races in Georgia, New Jersey, and Virginia.

See also Eliminating Waste, Fraud, and Abuse in Medicaid My Administration has been relentlessly committed to rooting out waste, fraud, and abuse in Government programs to preserve and protect them for those who rely most on them. The Medicaid program was designed to be a program to compassionately provide taxpayer dollars to healthcare providers who offer care to the most vulnerable Americans. To keep payments reasonable, billable costs for such care were historically capped at the same level that healthcare providers could receive from Medicare. The State and Federal Governments jointly shared this cost burden to ensure those of lesser means did not go untreated. Under the Biden Administration, States and healthcare providers were permitted to game the system. For example, States "taxed" healthcare providers, but sent the same money back to them in the form of a "Medicaid payment," which automatically unlocked for healthcare providers an additional "burden-sharing" payment from the Federal Government. Through this gimmick, the State could avoid contributing money toward Medicaid services, meaning the State no longer had a reason to be prudent in the amount of reimbursement provided. Instead of paying Medicare rates, many States that utilize these arrangements now pay the same healthcare providers almost three times the Medicare amount, a practice encouraged by the Biden Administration. These State Directed Payments have rapidly accelerated, quadrupling in magnitude over the last 4 years and reaching $110 billion in 2024 alone. This trajectory threatens the Federal Treasury and Medicaid's long-term stability, and the imbalance between Medicaid and Medicare patients threatens to jeopardize access to care for our seniors. I pledged to protect and improve these important Government healthcare programs for those that rely on them. Seniors on Medicare and Medicaid recipients both deserve access to quality care in a system free from the fraud, waste, and abuse, that enriches the unscrupulous and jeopardizes the programs themselves. We will take action to continue to love and cherish the Medicare and Medicaid programs to ensure they are preserved for those who need them most. The Secretary of Health and Human Services shall therefore take appropriate action to eliminate waste, fraud, and abuse in Medicaid, including by ensuring Medicaid payments rates are not higher than Medicare, to the extent permitted by applicable law. This memorandum is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person. DONALD J. TRUMP

There are many factors pushing up electricity prices, but in some parts of the country, efforts to revamp the electric grid to handle more extreme weather is the primary reason. In California, utilities are upgrading their infrastructure to reduce wildfire risk; in the Southeast, they are rebuilding after hurricanes and flooding and billing their customers for it. In Arizona, residents are cranking up the air conditioning during scorching heat and paying more for power simply because they’re using more AC.

Photo of utility workers in a lift over a background of burned homes and palm trees by the beach — Technicians conduct maintenance at electric facilities among the ruins of beachfront structures after the January 2025 wildfires in Los Angeles.
Qian Weizhong / VCG via Getty Images

Even Republican-leaning voters — 42 percent of conservative Republicans, and 57 percent of moderate ones — are linking their rising costs to global warming, according to the Yale survey. “It makes perfect sense that they would do so, given the results from our study, which show that the geographically rural areas are actually facing some of the highest costs,” Clausing said. From wildfires to hurricanes, rural areas are often facing the brunt of the damage. Her study found that the largest household costs occurred in parts of the West, the Gulf Coast, and Florida.

Utility bills, despite being a top political issue, are actually one of the smaller price-point impacts of climate change, according to Clausing’s research: Households are spending an average of about $35 more on electricity per year, compared with an extra $356 on homeowners’ insurance premiums, the biggest cost. Clausing, who owns a house in Portland, Oregon, said the insurance premium on her home skyrocketed from around $1,000 five years ago to about $2,200 today — an increase that her insurance company said was to help recoup the costs of wildfire damage in Oregon.

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Another major category of costs in Clausing’s study was the health effects of climate change. As wildfire smoke grows more common, exposing people to harmful particulate matter, it’s leading to early deaths. The estimated economic damage of these premature deaths works out to $103 for every household in the United States each year. That’s not to mention the other ways climate change damages the public’s health, from lengthening allergy seasons to expanding the geographic spread of infectious diseases as temperatures warm, allowing ticks and mosquitoes to explore new territories.

But it seems like many Americans haven’t made the connection: Only 35 percent of those in the Yale survey who agreed that climate change was driving up prices saw a link to higher health care costs. That’s because these health risks haven’t been adequately communicated to the public, said Anthony Leiserowitz, the director of the Yale Program on Climate Change Communication. “Health is one of the most powerful ways we have of saying, ‘Actually, this affects our lives right here, right now. It’s already affecting the people and places and things that we love,’” he said.