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National Energy Assistance Directors' Association

LIHEAP Still Here, But Threats Loom

The Low Income Home Energy Assistance Program (LIHEAP) has been under persistent threat from the Trump Administration, which fired the entire LIHEAP program staff at the Department of Health and Human Services (HHS) on April 1, 2025 and proposed eliminating funding for the program in fiscal year 2026. 

Thankfully, LIHEAP received $4.045B in funding for FY2026. This is a $20 million increase from last year. But even with the funds secured, there are still challenges facing the program.

Federal LIHEAP staff have not been rehired. States are expected to run their programs with no federal training or guidance, and without HHS staff, the potential remains for future delays in funding. Heating costs are expected to soar this winter as consumers face new rounds of rate increases. We estimate that home heating costs will be up 11% this winter. Families may be forced to choose between energy and food, medicine, or other necessities. Rate increases are expected to hit families hard this winter, and if LIHEAP funds are delayed, the number of arrearages across the country could increase dramatically.  

NEADA has been at the forefront of the fight to restore the federal LIHEAP staff and protect the program. Provided below is a selection of media coverage about NEADA’s efforts to protect LIHEAP and restore assistance to the millions of vulnerable families in need who rely on LIHEAP every year.  

NEADA’s Fight to Protect LIHEAP

NEADA in the News: LIHEAP Under Threat

Government Shutdown
Coverage of the HHS Firings
Calls for the Release of the Remaining 10% of FY2025 LIHEAP Funds
President Trump’s Proposed FY 2026 LIHEAP Budget

Remaining LIHEAP Funds Released

On April 30, 2025, the U.S. Department of Health and Human Services (HHS), Administration for Children and Families (ACF) announced the release of the remaining FY 2025 LIHEAP funds, a total of $401.5 million. As of May 1, 2025, states were able to draw down on their grants.

For the current program year, the Administration has released all remaining 2025 LIHEAP funds to the states. There will be a small reallotment before the end of the fiscal year.