WASHINGTON, DC -- More than three weeks after the passage of the Continuing Resolution that runs through November 18th, the Obama Administration today announced it was releasing just $1.7 billion for the Low Income Home Heating Program (LIHEAP) -- substantially less than the $3.6 billion proposed in the U.S. Senate -- U.S. Senators Jack Reed (D-RI) and Olympia J. Snowe (R-ME) warned that proposed reductions to this critical home-heating program could seriously affect Americans across the country, particularly residents in cold weather states.

LIHEAP is the main federal program that helps low-income families and seniors on fixed-incomes with their energy bills, providing vital assistance during the cold winter months.   And as temperatures drop and energy prices increase, the need for energy assistance is growing.  Indeed, the Energy Information Administration recently noted that “average expenditures for households that heat with oil are forecast to be higher than in any previous winter.” 

"While there are significant budget challenges, it would make more sense to end taxpayer subsidies and giveaways for big oil companies rather cut heating aid at the start of winter.  Times are tough and thousands Rhode Island seniors and families rely on LIHEAP as a vital lifeline to help them through the winter.  Indeed, enrollment in the program has reached record levels over the last several years," said Reed.  "It is clear that more help is needed soon, and Senator Snowe and I will continue to look for ways bring funding closer to the levels it has been in recent years."  

“The Administration’s failure to recognize the hardship of home heating oil prices on low income families was a mistake earlier this year in the President’s budget, and this recent announcement simply is tone-deaf to the historic challenge facing Maine,” said Senator Snowe.  “While it is critical that we forcefully address our country’s deficit, under these figures LIHEAP is funded at 63 percent less than last year while heating oil is roughly 27 percent higher than this time last year.  I call on the President to reassess this decision as well as his dramatic proposed cut for fuel assistance and ensure that the LIHEAP program, a critical lifeline to thousands of families, is not disproportionately cut in a constrained federal budget.” 

In 2011, the federal government provided $4.7 billion in LIHEAP assistance nationwide, down from about $5 billion in 2010 as Congress responds to calls to control the budget.  Under pressure to cut federal spending, the White House proposed a total of $2.57 billion for LIHEAP in its current 2012 budget.  The $1.7 billion announced by the Administration today comes under a short-term funding bill that expires on November 18th.  Congress must still approve a full-year funding bill for the program.

It is estimated that from this initial release of $1.7 billion today, Rhode Island is slated to receive $12.8 million and Maine will get $23.9 million.

Last month the Senate Appropriations Committee, of which Senator Reed is a member, restored some LIHEAP funding, approving a measure that would provide a total of $3.6 billion for LIHEAP in 2012.