LIHEAP

The Low Income Home Energy Assistance Program (LIHEAP) is a federal block grant program that provides financial assistance to low and fixed-income individuals for fuel and utility bills, as well as low-cost weatherization and energy-related home repairs. The LIHEAP statute provides for two types of program funding – regular funds and emergency contingency funds. Regular funds are allotted to states according to a formula prescribed in the statute. Contingency funds are allotted and released by the president and the secretary of Health and Human Services. Every year, Congress must appropriate funds for LIHEAP.

LIHEAP is administered by the states, with the states having maximum flexibility in directing program funds. In addition, state and local governments provide assistance through taxpayer-funded initiatives. Fuel funds and other charitable groups provide direct assistance, funded by donations, to those in need. Utilities help these customers through discounts, fee waivers, arrearage forgiveness, and efficiency/weatherization programs, funded by customers and stockholders.

Funding Update FY 2011
For the FY2009 and FY2010, Congress has funded LIHEAP at the fully authorized level of $5.1 billion. For the FY2011, Congress cut $400 from the LIHEAP contingency fund, resulting in $4.71 billion for LIHEAP funding.

Funding Update FY 2012
In February, the Obama Administration released its’ FY2012 budget that proposes a cut to LIHEAP funding of about $2.5 billion, essentially cutting the program in half to $2.57 billion. The proposed cut will not touch the contingency fund of $590 million. The Administration justified its proposed cut in funding due to the lower energy prices. Although natural gas prices have decreased in the last couple of years, prices for other fuels have increased. The Center on Budget and Policy Priorities released a study that asserts that the Administration’s rationale for a cut to LIHEAP is weak.

In September, the Senate Appropriations Committee passed $3.6 billion, $3.4 billion in base funding and $200 million in contingency funding, for LIHEAP. The House of Representatives’ Appropriations Committee proposed $3.4 billion, all base funding. Congress still has not determined a funding level.

AGA Press Release on the Proposed LIHEAP Cuts.

LIHEAP Recipients

According to a study by the National Energy Assistance Directors’ Association, LIHEAP recipient households are more vulnerable to temperature extremes since theyare likely to have seniors, disabled members or children in the home. More than 90 percent of LIHEAP households had at least one of these vulnerable household members. The study also showed that these households face many challenges in addition to their energy bills, including unemployment, unhealthy home conditions, and medical issues. Many of the LIHEAP recipients faced significant medical and health problems in the past five years, partly as a result of high energy costs. Nearly one third reported that they went without food, more than 40 percent sacrificed medical care, and one quarter had someone in the home become sick because the home was too cold.

AGA Viewpoint

Congress should appropriate at least $5.1 billion in Fiscal Year 2012 for LIHEAP funding.

Take Action

Contact Congress about LIHEAP

Participate in Winter LIHEAP Action Day
February 15, 2012 at the Office of AGA, 400 N. Capitol Street, NW, Washington, DC
Save the Date for the annual Winter LIHEAP Action Day. LIHEAP advocates from all over the nation will descend on Washington to advocate for funding for LIHEAP. Stay tuned for registration information.

Resources

AGA Fact Sheet on LIHEAP
Center on Budget and Policy Priorities LIHEAP Analysis. The Center on Budget and Policy Priorities published an analysis that argues that the Administration’s rationale for cutting the LIHEAP back to 2008 levels due to low energy costs is weak. The analysis finds that along energy prices are lower this year the Department of Energy forecasts that next winter the prices will be back to their 2008 levels and the analysis also points out that the recession has greatly increase the number of low-income households eligible for LIHEAP.
Chart: LIHEAP FY 2010 vs FY 2011 (as of February 2011): This chart illustrates the LIHEAP regular and contingency funds distributed to each state in FY 2010 and FY2011.
Chart: LIHEAP Winter Heating Households Served in FY2010 and FY2011 Compared to FY2008: Since the Administration has proposed cutting LIHEAP to $2.57 billion, which was the funding level during FY2008, this chart is a good indicator of the cuts in heating for households served by LIHEAP in each state.
State LIHEAP Fact Sheets Download fact sheets on LIHEAP for all 50 states.
The LIHEAP Formula: Legislative History and Current Law , by Libby Perl, Specialist in Housing Policy, Congressional Research Service - July 6, 2010
The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding, by Libby Perl, Specialist in Housing Policy Congressional Research Service - January 13, 2011

Letters of Support for LIHEAP from Members of Congress and Advocates
Are Your Elected Officials Champions of LIHEAP?
Listed below is a collection of 2010 and 2011 letters from Senate and House members, Governors and the utility industry and advocacy communities on LIHEAP funding. Please use this resource to review your elected officials’ stance on funding for LIHEAP.