Energy Star, the federal program known for slashing utility bills and reducing emissions, is now in jeopardy. Under President Donald Trump’s proposed budget cuts, The U.S. Environmental Protection Agency (EPA) may lose the ability to operate the program, spelling trouble for households, developers and climate goals.
Energy Star helps keep energy costs low for both consumers and businesses. Through the reduction of greenhouse gas emissions and energy efficient appliances, the organization facilitates the regulation of products and services leading to lower electric, gas, and water bills over time. It has also served as a trusted, nonpartisan benchmark for efficiency, making it easier for buyers, sellers and renters to compare opinions without having to navigate complicated technical data.
However, in May, the EPA announced layoffs and restructuring following Trump’s proposal to slash its budget by more than half. While Energy Star itself isn’t explicitly named, internal reports suggest its days are numbered. Without it, consumers lose a trusted guide to affordable appliances, and businesses risk losing access to tools that drive billions in savings. Industry groups have warned that even a partial reduction in scope could erode credibility the program has built over 30 years, leaving room for less rigorous, and less affordable, private labels to fill the gap.
Consumers
Energy Star’s partnership with the EPA helps spread their access and supplies funding toward climate goals. Appliances marked with the trademarked blue sticker are guaranteed to save the user 10-50% on energy usage.
With Trump’s proposed budget cuts, these appliances are the first to go. Entire homes and apartments can now be certified by Energy Star, saving owners 15-30% on their total energy bill, though these potential savings are now on the chopping block. For low-income households, these reductions translate directly into money for groceries, rent, or childcare. Energy efficiency is a lifeline, not just a lifestyle choice.
Energy Star’s partnership with the EPA maintains market affordability. This regulatory body in cooperation with a government agency is on its way out, thus private companies are soon to swoop in and occupy the space. This would raise prices and push affordability out of the hands of those most in need, turning energy efficiency into a competitive market as opposed to a government subsidized set of standards.
This loss could also set back years of consumer education. The Energy Star logo can tell buyers everything they need to know at a glance – something that marketing-heavy private alternatives can’t deliver. Without a centralized system, shoppers could be forced to wade through conflicting claims and fine print, building confusion and mistrust.
Businesses
Last year, 8,800 commercial buildings earned Energy Star certification, saving over $2.2 billion. But the bigger concern for real estate operators is the future of the Portfolio Manager, the EPA’s energy tracking tool used in over 330,000 commercial buildings across the U.S. Used to monitor nearly 25% of U.S. commercial floorspace, it drives performance and compliance. If defunded, its loss could wipe out $14 billion in annual savings and years of emissions data.
Energy Star runs on $32 million in federal funding but delivers billions of dollars in returns. In 2024 alone, Energy Star helped prevent 5.7 metric tons of emissions. Without it, the burden shifts to businesses to find costly private alternatives that lack the necessary government oversight. The ripple effects could be felt in everything from commercial leasing agreements – where efficiency ratings often influence rental rates – to corporate ESG reporting, which increasingly depends on standardized, verifiable data.
While the Trump administration frames the cuts as part of broader efforts to reduce government spending, opponents counter that the long-term economic and environmental consequences would far outweigh the short-term budget savings. For now, the program’s fate is uncertain, but if Energy Star disappears, the impact will reach far beyond the sticker on a refrigerator door.
