In some ways, the Low Income Home Energy Assistance Program (LIHEAP) is straightforward. Congress appropriates funds, which are given to the states to pay energy bills on behalf of families who cannot afford the bill. But unlike mandatory federal assistance programs such as the Supplemental Nutrition Assistance Program (SNAP) where all eligible families that apply will get help, LIHEAP is a block grant. This means that a set amount is allocated to each state in a calendar year, and once those funds have been spent, the program closes down.
At current funding levels, LIHEAP funding only reaches about 18 percent of the eligible population, leaving millions of families behind.
But the math is simple. The more funding Congress appropriates, the more people we can help. With administrative costs capped at 10 percent of a state’s grant, we know that the vast majority of the funds actually go towards helping struggling households.
This winter, when gasoline and home heating prices are the highest we’ve seen in years, the insufficiency of LIHEAP funding is even more evident. According to a NEADA analysis, the combined increase in the cost of gasoline and home heating this winter will be more than the average family spends on Christmas presents. For low income families struggling to make ends meet, higher prices mean choosing between keeping the heat on or putting presents under the tree.
The Department of Energy’s Weatherization Assistance Program (WAP) is similar. That sister program to LIHEAP is designed to weatherize low-income households, lowering their energy costs and as a result, reducing their reliance on LIHEAP. The math is the same – more funding means more families helped. At the current funding level of approximately $278,000 annually, WAP only serves about 31,000 homes per year. In 2009-2012, WAP received $5 billion in funding as part of the American Recovery and Reinvestment Act – almost 20 times there usual appropriation. Over that period of time, WAP exceeded expectations and served 800,000 units, 26 times the program’s usual capacity.
Recently, the House introduced a reconciliation bill that includes $3.5 billion for WAP. Our conservative estimates suggest that this level of funding could provide support for 400,000 homes. And that number does not include the state, local, and utility funds that are leveraged by federal dollars.
In the case of LIHEAP and WAP, the question isn’t whether or not the programs are effective. We know they work. The question is how much does Congress care about the energy burdens of low-income constituents? All states need is sufficient funding – they can do the rest.
Updated: November 22, 2021