Low income home energy assistance program
LIHEAP is a federal grant program that provides financial assistance to low and fixed-income individuals for fuel and utility bills.
LIHEAP Saves Families
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 average limited-income household’s energy burden is three times that of other households. For families with annual incomes of less than $35,000, more than half reported they reduced or went without medicine or food at least once in the previous 12 months to pay an energy bill.
By the Numbers
- LIHEAP restored power or prevented disconnection more than 2.4 million times in FY2025.
- Nearly 50,000 homes were weatherized using LIHEAP funds in FY2025, improving household safety, energy efficiency, and affordability.
- LIHEAP keeps people safe and helps families avoid dangerous heating and cooling practices.
- Nearly 6 million households received assistance through the program in FY2025.
- Energy assistance helped lift 57,000 children out of poverty in 2024.
- Energy assistance helped lift 78,000 seniors out of poverty in 2024
Our Position
LIHEAP keeps people safe and helps families avoid dangerous heating practices. Nine out of 10 LIHEAP households include a person vulnerable to temperature extremes because of age or disability.
AGA and our member companies work diligently to keep our customers connected, but the need for energy assistance remains. AGA will continue to support responsible levels of LIHEAP funding.
Current Funding
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.
- Following the release of final FY2026 LIHEAP funding in April, total program funding reached $4.045 billion, representing a $20 million increase over FY2025.
- The House Appropriations Committee has approved its FY2027 Labor, Health and Human Services, Education, and Related Agencies (LHHS) Appropriations bill and is awaiting floor consideration. The bill provides $4.055 billion for LIHEAP, a $10 million increase over FY2026.
- The House bill also includes report language directing HHS to distribute at least 90 percent of LIHEAP funding by November 1 of each fiscal year, reinforcing congressional efforts to ensure states receive funding before the winter heating season.
- The Senate has not yet released or marked up its FY2027 LHHS Appropriations bill. AGA will continue to monitor the appropriations process as negotiations move forward.
- AGA and EEI submitted testimony to both the House and Senate LHHS Appropriations Subcommittees in support of robust LIHEAP funding and continue to work with coalition partners and bipartisan congressional champions to protect and strengthen the program.
As commodity prices continue to increase and put a strain on low-income households, there is a clear need to expand resources for the LIHEAP program. The National Energy & Utility Affordability Coalition (NEUAC) and its national coalition of over 300 member companies strongly urge Congress to defend and improve LIHEAP funding for FY 2027.
Resources
Take Action: Participate in LIHEAP Advocacy
Every year, LIHEAP supporters from across the country gather together in the name of advocacy and education. Join us for LIHEAP Action Day, where these advocates go to Capitol Hill to speak with legislators about the need for more LIHEAP funding.