House Committee Approves Ratepayer Protection Act Targeting Data Centers

The House Energy and Commerce Committee unanimously approved the Ratepayer Protection Act, a bipartisan bill designed to prevent residential consumers and small businesses from subsidizing the energy costs of massive data centers. Sponsored by Representatives Gabe Evans and Kathy Castor, the legislation establishes a federal standard requiring facilities with a power demand of 100 megawatts or more to cover the full incremental costs of generation, transmission, and distribution upgrades.

Jon Husted, a U.S. Senator from Ohio, introduced a companion bill in the Senate to align with the House effort. The legislation codifies the Ratepayer Protection Pledge signed by President Donald Trump in March 2026, which included commitments from major technology firms such as Google, Microsoft, Amazon, Meta, OpenAI, Oracle, and xAI. The bill's scope was recently narrowed to apply specifically to data centers to address rising nationwide electricity costs.

While the bill has support from industry giants and committee leadership, some critics argue it is insufficient. Ranking Member Frank Pallone stated the legislation does not go far enough to address pollution and water consumption, suggesting a potential moratorium on data center construction. Additionally, the consumer advocacy group Food & Water Watch claimed the bill contains loopholes that could still benefit utilities at the expense of consumers. This legislative push follows 142 coordinated protests organized by HumansFirst on July 18, 2026, highlighting growing public opposition to AI data center expansion.