WASHINGTON, DC -- In an effort to help more Rhode Islanders pay their home heating bills this winter, U.S. Senator Jack Reed (D-RI) today requested an additional $1 billion in emergency funding for the Low Income Home Energy Assistance Program (LIHEAP). In a letter sent to the Senate Appropriations Subcommittee on Labor, Health and Human Services, and cosigned by a bipartisan group of 37 Senators, Reed requested a total of $3.412 billion in fiscal year 2008 for LIHEAP, a federal block grant program that provides states with annual funding to operate home energy assistance programs for low-income households.

"Rhode Islanders are already being hit with high gas prices at the pump. As temperatures drop and the cost of oil continues to rise, it is imperative that we provide more assistance for families in need," said Reed, chairman of the Northeast-Midwest Coalition. "This additional $1 billion in emergency funding for LIHEAP will help ease the strain on more low-income families and elderly citizens and provide states with immediate relief to help people heat their homes this winter."

Last year, nearly 30,000 Rhode Island households relied on LIHEAP to assist with the costs of heating their homes and to pay delinquent utilities bills to re-establish service.

A recent report by the Energy Information Administration estimates that heating oil costs are likely to jump as high as 26 percent this winter. However, that didn't stop President Bush from vetoing the Labor-HHS spending bill last month, which contains $2.4 billion for LIHEAP. This funding is $250 million above last year's spending level and $629.6 million above President's budget request.

"The President's veto of LIHEAP is preventing states from receiving critical funds to cope with the next fiscal year and unnecessarily delaying heating assistance to thousands of Rhode Islanders who need help with their heating bills," said Reed. "The Administration should reverse course and work with Congress to quickly release emergency LIHEAP funding now rather than leaving families out in the cold this winter."

The text of the letter follows:

The Honorable Tom Harkin, Chairman

The Honorable Arlen Specter, Ranking Member

Subcommittee on Labor, Health and Human Services, and Education, and Related Agencies

Committee on Appropriations

Washington, DC 20510

Dear Chairman Harkin and Ranking Member Specter:

We are writing to request that you include an additional $1 billion in emergency funding for the Low Income Home Energy Assistance Program (LIHEAP) in fiscal year 2008 to provide for a total of $3.412 billion. We recognize the difficult budget constraints that the Subcommittee faces and appreciate your support for additional funding for the LIHEAP program in FY2008 Labor, Health and Human Services, and Related Appropriations Conference Report that was vetoed.

With the price of oil hovering near $100 per barrel, and the Energy Information Administration (EIA) estimating that households can expect to pay between 10 to 26 percent more for heating fuels than during the 2007-2008 winter, states need additional funding immediately to reduce the energy burden of families, individuals with disabilities, and senior citizens and ensure their health and safety this winter.

Between FY2003 and FY2007 the number of households receiving LIHEAP assistance increased by 26 percent from 4.6 million to about 5.8 million or about 15.6 percent of the eligible population. During this same period, the federal appropriation increased by only 10 percent with the resulting average grant declining from $349 to $305. Unfortunately, energy prices are not decreasing proportionally, but instead continue to rise. As a result, there has been a significant decrease in the program's purchasing power. According to the National Energy Assistance Directors Association, states are planning to reduce the number of households served by about 15 percent in the absence of additional federal and supplemental state funding. The result would be a decline in the number of households served from about 5.8 million in FY2007 to 4.9 million. For these reasons, we believe an additional $1 billion in emergency funding is warranted.

LIHEAP is vital to protecting the public health and safety of low-income families. According to the Children's Sentinel Nutrition Assessment Program (C-SNAP) out of Boston Medical Center, babies and toddlers who live in energy insecure households are more likely to suffer poor health, require hospitalization, manifest developmental problems, and lack adequate food. C-SNAP found that when families do not have access to sufficient energy, they may resort to unsafe heating methods and do not have the proper means to refrigerate or prepare food for their children. In addition, without a sufficient LIHEAP benefit, seniors living on fixed incomes often have to decide between buying life-saving prescriptions and paying utility bills. For individuals and households that may have to face these difficult choices, LIHEAP makes a real difference in their ability to cope with adverse circumstances.

Moreover, the program helps low-income homeowners weatherize their homes to save energy and lower their energy burden. Weatherization, on average, reduces heating bills by 31 percent and overall energy bills by $200 to $250 per year.

Thank you for your consideration. We look forward to working with you to increase funding for the LIHEAP program to ensure that low-income seniors, individuals with disabilities, and families have the resources that they need to stay warm this winter.

Sincerely,