On February 9, President Obama released his proposed fiscal year 2017 federal budget. With large numbers of low-income families seeking assistance this year, the Obama administration has recommended reducing spending on the Low Income Home Energy Assistance Program (LIHEAP) from the fiscal year 2016 level of $3.39 billion to $3 billion in fiscal year 2017, a $390 million decrease.
This budget also establishes a $560 million mandatory contingency fund to address increases in energy prices, extreme weather and changes in the numbers of eligible households. This contingency fund has been proposed by the administration before but has been eliminated due to congressional objections. Additionally, the administration proposes that Congress allow states to spend up to 40 percent of LIHEAP funds for weatherization without needing federal approval.
President Obama’s budget will now be submitted to Congress and sends a message on the priorities that the President would like to pursue. After Congress receives the budget, it will be dispersed to various committees where it will be reviewed and reprioritized. It is during this time in committee that Senators and House members have the opportunity to add or remove additional program funds. It is important to note that the President’s budget is largely symbolic and faces many obstacles including a Republican majority in Congress and election year politics.
APGA has recently signed on to an open letter from the National Energy and Utility Affordability Coalition (NEUAC), to congressional appropriations committees asking for an increase in the amount of LIHEAP funding for fiscal year 2017 to $4.7 billion. At the same time, APGA continues to push for full funding at the authorized $5.1 billion level.
For questions about this article, please contact Todd Brady of APGA staff by phone at 202-370-6211 or by email tbrady@apga.org.