The COVID-19 pandemic represents an unprecedented global challenge. The National Energy Assistance Directors Association is dedicated to providing accurate and timely information to its members, the press, national and state government, and the public as the crisis develops. We are assembling information and resources on the crisis, the role for LIHEAP and potential supplemental funding for the program to help families weather the storm.
We have complied a set of frequently asked questions on LIHEAP and COVID-19.
LIHEAP Basics: Approximately 34.9 million households are eligible for LIHEAP. The program serves about 6 million households, one in six of the eligible population. The average grant is about $520.
How can LIHEAP Help Families During the Pandemic? LIHEAP is the national program to provide financial assistance to households that are unable to pay their home heating and cooling bills. NEADA anticipates three populations that will be in the most need of financial assistance during the outbreak.
- Working families in which the wage-earners are hourly or cannot work remotely, and others who lose their income due to quarantine. Without income, many of these families will be pinching pennies to cover their basic needs. In addition, quarantine will lead to higher energy bills because people will be home during the day, using electricity and heat or air conditioning to keep their homes comfortable.
- Households with members who become infected with COVID-19 and experience increased medical costs or hospital bills as well as reduced income for caretakers.
- Elderly, disabled, and physically vulnerable individuals who are self-quarantined during the outbreak to prevent exposure. As the pandemic carries over into the warmer months, it will be essential to keep our vulnerable populations comfortable in their own homes so they are not exposed to the virus by going to cooling centers or family members houses to avoid extreme heat.
With supplemental funding, LIHEAP can provide much needed assistance to all three populations that will be most acutely affected by the pandemic.
Status of utility shut-off moratoriums: States and utilities are moving quickly to suspend utility shut-offs due to nonpayment as low-income households struggle with the loss of income due to illness and job loss as a result of COVID-19. NEADA is compiling a list of states with mandatory shut-off suspensions and utilities who have voluntarily announced they will not shut-off households during the crisis.
These shutoff moratoriums and suspensions are good stopgap measures to prevent hardship during the crisis. However, when they expire, household that benefited from these provisions will be hit with a large bill covering their energy costs for the duration of the suspension. They will need assistance at that time to ensure their energy is not turned off during the hot summer months.
Energy prices are dropping – is bill payment still a problem? Average winter heating costs have fluctuated in the last 10 years between a high of $1,001 during the winter heating season of 2013-14 to a low of $795 during 2011-12. The estimated cost for 2019-20 is about $911. Prices vary by fuel type, with significant decline for those using natural gas, from $698 during the winter of 2009-10 to $580 during the current winter heating season, while the price for those using electricity has increased from $873 to $1,162 during the same period. Heating oil and propane have remained high, averaging about $1,500.
| Winter Heating Season | Natural Gas | Electricity | Heating Oil | Propane | All Fuels |
|---|---|---|---|---|---|
| 2009-10 | $698 | $873 | $1,552 | $1,642 | $863 |
| 2010-11 | $680 | $885 | $1,966 | $1,845 | $893 |
| 2011-12 | $529 | $983 | $1,757 | $1,587 | $795 |
| 2012-13 | $567 | $1,071 | $2,113 | $1,368 | $841 |
| 2013-14 | $636 | $1,163 | $2,121 | $2,142 | $1,001 |
| 2014-15 | $600 | $1,158 | $1,668 | $1,572 | $924 |
| 2015-16 | $481 | $1,044 | $900 | $1,047 | $755 |
| 2016-17 | $533 | $1,055 | $1,128 | $1,266 | $810 |
| 2017-18 | $565 | $1,143 | $1,376 | $1,540 | $887 |
| 2018-19 | $588 | $1,177 | $1,570 | $1,529 | $922 |
| 2019-20 | $580 | $1,162 | $1,501 | $1,572 | $911 |
Does LIHEAP cover the whole cost of home heating and cooling? LIHEAP on average covers about 55% of the cost of home heating. Each state sets its own benefit levels annually, which may be based on funding, fuel type, household energy burden, and other factors. Households are expected to cover the remaining costs from their own resources. In a normal year household are generally able to cover the balance, however, with the expected increase in low income unemployment, we are concerned that some working families will not have the resources to pay the remaining bill.
Are the state delivery systems able to process additional funding this late in the winter heating season? Yes, we have just completed a rapid survey of state agencies, and the overwhelming response was that they have the infrastructure in place to move money quickly to help families in need. Some states that would have normally closed their programs by now are continuing to provide emergency assistance in light of the crisis.
Do states have sufficient funds available from the current program appropriation to provide emergency assistance to those losing their jobs and other impacts related to the COVID-19 virus? The simple answer is no. Most states are reporting no surplus of funds, limited available funding (less than 5 percent) or a shortfall in program funding that could require a cutback in other programs services provided by LIHEAP.
If additional funding was available, for example, $1.4 billion, how would those funds be used? States have reported that they would use the supplemental funding to provide additional assistance to families currently receiving help as well providing targeted assistance to people who have been temporarily laid off or are unable to work due to the outbreak.
NEADA is estimating that an additional $1.4 billion would help up to 4.4 million low income families (2.2 million existing families and 2.2 million new families) pay their home energy bills this spring. In addition, states would seek to prioritize those who are at high risk from the COVID-19 virus, the elderly, disabled, and working class families with young children.
If a wage earner loses their job and they were not income-eligible when they were working, can they sign up for LIHEAP and if so, how quickly? Many states require the household’s income for the past month to determine eligibility. In these states, households that would not normally be income-eligible but end up out of work will be able to apply after only two missed bi-weekly paychecks. Some states also have provisions to allow eligibility for households that have sudden changes in economic or employment status, provided they can document that change in status. A recent example of states serving populations that would not otherwise be eligible is furloughed workers during the 2018-2019 federal government shutdown.
Can renters receive benefits? Yes. The LIHEAP statute requires that grantees treat renters and homeowners the same under the program. Renters who pay their own heating and cooling bills may apply and receive assistance just as a homeowner would. In most states, renters for whom utilities are included in rent may apply and receive a benefit based on estimated heating/cooling costs.