.
JANUARY 11, 2026 – written by WADE QUEEN
.
Utility debt has become a growing crisis affecting rural communities across Kentucky.
.
.
The issue is exacerbating overall debt, including medical and student loan debt, which many households also are struggling to repay. Beginning this year, the Trump administration is resuming wage garnishment for student loan borrowers who have been unable to make payments for at least nine months. Banez argued utility debt is only worsening the crisis, as borrowers face a mountain of different payments.
.
“These are folks who have fallen so severely behind that they are experiencing, or set to experience, being subjected to debt collection as a result,” Banez noted.
.
Around one in six U.S. households are currently behind on their utility bills as of late 2025, with total household energy debt reaching about$23 billion, according to the National Energy Assistance Directors Association.
