WASHINGTON, DC – As Congressional negotiators seek to finalize a bipartisan agreement on funding the federal government for fiscal year 2023, U.S. Senators Jack Reed (D-RI) and Susan Collins (R-ME), who both serve on the Appropriations Committee together, are leading efforts in Congress to include an extra $500 million in supplemental funds for the Low-Income Home Energy Assistance Program (LIHEAP).

LIHEAP is a federally funded program that helps low-income households with their home energy bills by providing payment and/or energy crisis assistance.  The Biden Administration’s most recent disaster supplemental request included an additional $500 million for LIHEAP to address growing winter heating needs.

Many Northeast residents are projected to see a significant increase in their utility bills this winter, with residential electricity prices in some states forecast to rise over 60 percent, propane up 40 percent, and natural gas prices up over 20 percent, resulting in higher home heating bills.  According to the National Energy Assistance Directors’ Association, the average cost to heat a home is expected to increase by 17.2 percent this winter to $1,208, up from $1,031 last season.

Given elevated energy prices forecast for this winter, the Senators say the emergency federal LIHEAP funding is needed to assist low-income households and seniors on fixed incomes pay their energy bills and stay safe during the winter.

Reed and Collins, who are leading efforts to include $4 billion for LIHEAP in the fiscal year 2023 appropriations package making its way through Congress, already delivered $1 billion in emergency funding for LIHEAP in the short-term “continuing resolution” (CR) funding package that President Biden signed into law. 

But with many families – particularly those in the Northeast -- facing a winter heating crisis, Reed and Collins are working with the Biden Administration on a bipartisan effort to deliver another $500 million for LIHEAP recipients.

“While we recognize the competing priorities you must balance, the number of households eligible for LIHEAP assistance continues to exceed available funding.  Meanwhile, the average cost of heating oil is nearly 70 percent higher than last year and natural gas is 20 percent higher, according to the U.S. Bureau of Labor Statistics.  As these prices go up, the purchasing power of LIHEAP’s appropriations goes down.  This leaves states in the position of making tough choices about the amount of assistance they will provide and the number of people they will serve with the limited funding available.  Ensuring that LIHEAP is well-funded will help guarantee that the program has the resources it needs to help as many eligible, low-income households and seniors as possible,” the Senators wrote to the respective leaders of the House and Senate Appropriations Committees this week.

Under the CR passed earlier this year, HHS was able to advance states funding equal to 90 percent of their FY 2022 allocation.  As a result, Rhode Island has received $29.5 million and Maine has received $42.5 million in federal LIHEAP aid to help vulnerable residents lower their home energy bills.

If it is included in the final package, the extra $500 million in emergency LIHEAP funding is projected to provide an estimated $3.3 million boost to Rhode Island.

Additionally, Reed and Collins also worked to successfully include a $500 million LIHEAP investment in the Infrastructure Investment and Jobs Act (P.L. 117-58), which President Biden signed into law last November.  As a result, $100 million of this LIHEAP funding will be released annually through 2026.

LIHEAP is administered by states and accessed through local Community Action Agencies.  Eligibility for LIHEAP is based on income, family size, and the availability of resources.

Full text of the letter follows:

December 6, 2022

Dear Chairman Leahy, Chairwoman DeLauro, Vice Chairman Shelby, and Ranking Member Granger:

We appreciate the Committee’s longstanding support for the Low-Income Home Energy Assistance Program (LIHEAP) and your work to include $1 billion in emergency funding for LIHEAP in the Continuing Resolution.  As you know, the Biden Administration’s most recent disaster supplemental request included an additional $500 million for LIHEAP to address growing winter heating needs.  We agree that additional LIHEAP funding is critical as high energy prices continue to make it difficult for low-income Americans to afford their energy bills, and as such, we urge the Committee to provide additional emergency funding for the program.

As you know, LIHEAP is the main federal program that helps low-income households and seniors pay their energy bills, providing vital assistance during both the cold winter and hot summer months.  Access to affordable home energy is a matter of health and safety for many low-income households, children, and seniors.  LIHEAP assistance is an indispensable lifeline, helping to ensure that recipients do not have to choose between paying their energy bills and affording other necessities like food and medicine.

While we recognize the competing priorities you must balance, the number of households eligible for LIHEAP assistance continues to exceed available funding.  Meanwhile, the average cost of heating oil is nearly 70 percent higher than last year and natural gas is 20 percent higher, according to the U.S. Bureau of Labor Statistics.  As these prices go up, the purchasing power of LIHEAP’s appropriations goes down.  This leaves states in the position of making tough choices about the amount of assistance they will provide and the number of people they will serve with the limited funding available.  Ensuring that LIHEAP is well-funded will help guarantee that the program has the resources it needs to help as many eligible, low-income households and seniors as possible.                

As you craft a supplemental appropriations package, we urge you continue to your strong support of vulnerable Americans by providing additional emergency funding for LIHEAP.  Thank you for your attention to and consideration of this request.

Sincerely,