Challenge

In 2024, 3.8 million U.S. households were estimated to have experienced a utility shutoff due to non-payment of utility bills. Nearly 24% of all households were not able to pay at least one monthly energy bill, and total utility bill arrearages rose to $17.4 billion. About a third of these households subject to potential shutoffs for non-payment were households with children.¹ The trendlines for shutoffs, utility bill non-payment rates, and arrearages are all rising, the result of increasing energy prices, heightened energy demand for heating and cooling associated with climate change, and federal cuts to energy assistance programs.² In addition to posing considerable risks to health and safety–particularly for children, older adults, and medically vulnerable people–lack of access to electricity hinders education and employment opportunities and access to many social and health services.

Policy Solution

Bans on utility shutoffs protect household health and safety, particularly for low- and moderate-income households (e.g., those with household income at or below 200% of the Federal Poverty Level), older adults, children, and medically-vulnerable individuals.³

Model Policy Features

Key features of utility shutoff bans include: 

• A combination of date-, temperature-, and weather-based protections.⁴
• Reduced barriers to disconnection protection, such as language access, categorical eligibility (whereby participation in other government assistance programs qualifies a household for eligibility in offered programs), simplified application processes with ample time to meet documentation requirements (e.g., 15 working days), no more than annual medical eligibility recertification, and robust outreach about available protections.  
• At least 15 days initial notice prior to disconnection, followed by at least a second notice and personal contact.⁵
• Payment plans, such as arrearage management programs, to assist households behind on their bills to make payment and/or receive timely debt relief in order to prevent disconnections.
• Disconnection arrearage minimums.⁶
• Waiving of disconnection and/or reconnection fees.⁷
• Protections for renters in the event of a landlord’s failure to pay utility bills included in the lease.⁸
• Regulatory oversight of utilities to ensure compliance. 
• Provisions for regular data reporting, including spatial reporting and analysis of disconnection data, and public transparency (e.g., public-facing data dashboards).

Potential Policy Drawbacks and Pitfalls

• Shutoff bans are frequently based upon extreme weather and temperature predictions from the National Weather Service (NWS) which are not always reliable and may be even less reliable than they once were. Since January 2025, about 600 staff,⁹ who reportedly comprise about 10% of the NWS workforce,¹⁰ have been fired from or left the National Weather Service, which may jeopardize the intent of these laws to protect state residents. These protections also do not reflect local variations, such as heat islands or poorly insulated homes, which may increase the exposure of certain households to extreme weather.

Complementary Policies

Complementary policies that increase the ability of low- and moderate-income households to afford and pay their utility bills and protect them from shutoffs include:

• Arrearage management programs and debt forgiveness and percentage of income payment plans to facilitate the payment of utility bills.
• Utility bill assistance, bill credits, and low-income rates to reduce utility costs for low- and moderate-income households.  

Additional Information: In June 2020, 30 states and the District of Columbia had moratoria on utility disconnections due to nonpayment in place because of the economic impacts of the COVID pandemic.¹¹ As of July 1, 2021, 11 states continued to have moratoria in place,¹² but such protections were phased out as the pandemic subsided.