President Donald Trump has rejected a federal disaster aid request that could leave thousands of rural Michigan residents facing steep electric rate hikes after a destructive ice storm earlier this year. The decision affects two major electric cooperatives in northern Michigan, a region where Trump has long enjoyed strong political support.
The denial, issued on Oct. 22, shifts the full cost of storm recovery from federal agencies to local customers. The three-day ice storm in March caused extensive damage to power lines and infrastructure. According to documents obtained by Politico, federal officials recorded nearly $90 million in damage, an amount five times higher than the threshold needed to qualify for federal disaster assistance.
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Despite this, the Federal Emergency Management Agency informed Gov. Gretchen Whitmer that the request did not meet federal requirements. “It could be tens of millions of dollars left on the backs of the members,” said Allan Berg, CEO of Presque Isle Electric and Gas, also known as PIE&G. The cooperative serves residents across northeastern Michigan, many of whom fall into working-class households that may struggle with sudden increases in utility bills.
Great Lakes Energy, another major cooperative in northwestern Michigan, also warned members about the financial impact. The utility stated on its website that “all storm-related costs not reimbursed by state or federal disaster aid will be paid for by the cooperative’s entire membership.”
The two utilities operate as nonprofit electric cooperatives, meaning they are owned by the customers they serve. Whitmer previously warned Trump that families could face at least $4,500 per household in additional surcharges and rate hikes if federal help did not arrive. Pete Rose, a retired foreman from PIE&G, said the consequences could be severe.
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The denial “could make the co-op actually go broke if something isn’t done to make them whole again,” he said. The move is part of a broader pattern in which Trump has denied at least nine disaster aid requests from governors since April, even when FEMA’s own assessments showed damage levels high enough to qualify. In Michigan’s case, the administration relied on a narrow interpretation of regulations in a way that lawmakers say is unprecedented.
“We can’t find a similar disaster where Category F is denied,” said Rep. Jack Bergman, a Republican who represents the region and has urged the president to reconsider. “This is something nobody asked for. Our members did not want this ice storm. FEMA is a federal program designed to ensure that when large natural disasters occur, they can come and make the playing field level.”
At the state level, the response has become entangled in political disagreements. While the Republican-led state House approved $100 million in recovery funds in March, the Democratic-led Senate has not moved the package forward.
“You look at northern Michigan, it’s a Republican area,” said state Rep. Parker Fairbairn, who sponsored the legislation. “If this had happened in Detroit or Grand Rapids, I think they would have seen funding from the state already in big numbers.” The decision leaves rural communities grappling with uncertainty as they brace for significant financial burdens tied to repairing essential power infrastructure.
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