The Low Income Home Energy Assistance Program (LIHEAP)
APGA Issue Brief
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Background: The Low-Income Home Energy Assistance Program (LIHEAP) is a federal block grant program that provides money to low-income individuals/families to help them heat and cool their homes. The program receives an annual appropriation from Congress.

The Issue: LIHEAP funds are allocated by the Department of Health and Human Services (HHS) and administered by the states. States are provided with flexibility to tailor programs according to the needs of their low and fixed income residents. The formula used to allocate funds under LIHEAP is based on two sets of regulations, the original regulations that came out of the Home Energy Assistance Act of 1980 which created LIHEAP and subsequent modifications/revisions to those regulations.

Over the last few years, funding for LIHEAP has ranged between $2.1 billion and $900 million annually. In FY’2006 LIHEAP received its highest level of funding - $3.2 billion, $2.5 billion in the base program and $700 million in emergency assistance. Emergency funds are allocated at the President’s discretion.

Currently, LIHEAP reaches only approximately 18% of the 30 million households that are eligible for assistance. Since 1981, the number of households eligible for LIHEAP assistance has grown, while the number of households served has declined. The Energy Policy Act of 2005 included an increase to $5.1 billion in the funding authorization for LIHEAP. APGA supported this increase and supports full funding ($5.1 billion) of LIHEAP.

APGA Action: APGA has urged Congress to provide full funding for LIHEAP and have pushed for full funding in meetings and letters to Congress. LIHEAP continues to play a critical role in helping low-income families meet their energy needs. Without LIHEAP funding assistance many low-income families face the difficult choice between paying their energy bills or paying for other necessities, such as healthcare, food and childcare.

On February 15, 2007 President Bush signed into law House Joint Resolution 20 which continued funding for the federal government for the 2007 fiscal year which expires on September 30, 2007. The bill passed the House by a 286-140 vote and the Senate by an 81-15 vote. The resolution provided $2.16 billion in funding for the Low-Income Home Energy Assistance Program (LIHEAP). This is approximately a $1 billion reduction from the $3.1 billion that was provided in the 2006 fiscal year and approximately $3 billion below the $5.1 billion that was authorized for LIHEAP in the Energy Policy Act of 2005.

4/7/07