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CEA Report Estimates Trump’s Energy Agenda Could Add Up to 1.9% to GDP and Bolster Grid Reliability

It shows how policy shifts secure power supplies, bolstering the grid against rising AI-related electricity demand.

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President Donald Trump gives a thumbs-up as he arrives at the White House after speaking at the Conservative Political Action Conference, CPAC, Saturday, Feb. 22, 2025, in Washington. (AP Photo/John McDonnell)

Overview

  • The CEA report projects that pro-energy policies could raise U.S. GDP by 0.56% to 1.90% by 2035, or by 0.31% to 1.23% excluding deregulation benefits.
  • It attributes potential gains to faster permitting, resumed lease sales and expanded LNG and nuclear projects under the One Big Beautiful Bill Act.
  • Targeted deregulation on offshore commingling, federal land production and excess rule removal is estimated to contribute up to 0.67 percentage points of GDP growth.
  • The analysis warns that surging electricity demand from AI data centers and manufacturing reshoring risks blackouts and higher energy costs without grid upgrades.
  • The administration plans to leverage the report’s findings to press Congress and federal agencies to advance these energy reforms swiftly.