REPORT: Climate Change Is Costing Communities And Families Economically

Last Updated: 5/19/26

Extreme heat, severe weather events, and other climate change impacts are driving up everyday costs for U.S. households. Climate change directly impacts the U.S. economy, home insurance costs, healthcare costs, job productivity, childcare costs, grocery prices, and utility costs. 

TOPLINES

Economic impacts of climate change by the numbers:

CLIMATE CHANGE-FUELED EXTREME WEATHER EVENTS COST THE U.S. ECONOMY TRILLIONS OF DOLLARS 

Climate change-induced extreme weather events cost$2 trillion globally over the past decade, with the U.S. suffering the greatest economic losses at $935 billion. 

Climate change is projected to increase losses across the U.S. due to increasingly frequent and severe extreme weather events. Future impact estimates of projected climate hazards could cost the U.S. economy trillions of dollars. 

Some businesses and economic sectors are expected to incur losses in the billions to trillions due to climate change. Climate change could costbusinesses $1.5 trillion in productivity losses by 2050. 

Extreme heat and severe weather events threaten the health, safety, and productivity of outdoor workers.  

States have experienced unprecedented costs from billion-dollar extreme weather events driven by climate change. 

INCREASING LOSSES FROM CLIMATE CHANGE ARE INCREASING INSURANCE COSTS AND ELIMINATING VITAL COVERAGE

Increasingly frequent and severe extreme weather events fueled by climate change are driving up insurance costs. 

As climate change increases the frequency and intensity of extreme weather events, insurance premiums are expected to rise. 

Flooding, sea level rise, severe storms, and wildfires are driving up insurance costs across the country, especially in California, Louisiana, Florida, Texas, and the Southeast. 

CLIMATE CHANGE IS DRIVING UP UTILITY COSTS AND STRAINING THE ENERGY SYSTEM

Climate change impacts energy supply by causing extreme weather and climate trends that pose risks to power lines, interrupt electricity transmission, and strain the energy grid from increased cooling demand. Seven in ten Americans say extreme heat has affectedtheir electricity bills, and four in ten say it had a major impact on their bills over the last year. 

California, Texas, and other states are at risk of energy emergencies and power outages due to wildfires and other extreme weather events. 

Utilities across the country have raised energy prices after extreme weather events to recover from damage. Since 2020, 36 utilities have introduced at least one specific disaster-related charge across at least 18 states. 

CLIMATE CHANGE AND EXTREME WEATHER ARE INCREASING HEALTHCARE COSTS AND HINDERING ACCESS TO LIFESAVING CARE

Extreme weather events and intensified heat are costingthe U.S. billions of dollars each year in healthcare costs. 

Medicaid and Medicare recipients face higher utilization rates for climate-related health impacts. 

Extreme weather events are limiting access to healthcare, especially in rural communities. 

CLIMATE CHANGE IS DRIVING UP GROCERY COSTS 

Global climate change impacts are harming crop yields and shifting grocery cost burdens to consumers. 

Increasingly frequent and severe climate change impacts are projected to drive up food prices. 

States are facing a diverse array of climate-related agricultural impacts that are impacting prices for consumers. 

CLIMATE CHANGE AND EXTREME WEATHER EVENTS ARE DISRUPTING SCHOOLING, LEADING TO INCREASING CHILDCARE NEEDS

Today’s children are experiencing more frequent and severe impacts due to climate change compared to previous generations. 

Severe weather and extreme heat disrupt schooling, which puts the economic burden of last-minute childcare on families. 

Extreme weather events driven by climate change disproportionately impact the safety and well-being of Latino communities.  

Climate change is driving up insurance and energy costs, which disproportionately burden Latino households. 

Latino Americans are disproportionately at risk from the impacts of extreme heat. 

Climate change-driven extreme weather events are driving up insurance and energy costs, which disproportionately burden Black households. 

Black people, especially Black children, are at risk of health issues due to warming temperatures and extreme heat. 

Black Americans are disproportionately at risk from the urban heat island effect. 

Black Americans in the South are disproportionately at risk from the impacts of climate change.