Feeling the Heat: How Households Manage High Air Conditioning Bills

This report examines how budget-constrained households balance spending on air conditioning versus other essentials like food and clothing during hot weather. Using banking data from Houston, Los Angeles, and Chicago, it finds that low-income households often cope with high electricity bills by reducing air conditioning use and enduring more heat. The findings aim to help policymakers identify strategies to better support these households and improve their welfare amid rising temperatures.