Low Income Home Energy Assistance Program
Basic Concept:
Created by the Office of Community Services under the U.S. Department of Health and Human Services, the Low Income Home Energy Assistance Program (LIHEAP) provides federally-funded assistance for handling costs of home energy bills, energy crises, and home repairs related to weatherization and energy. It ensures that low-income families and households remain safe and healthy by having access to basic home energy needs such as heating, cooling, weatherization, and other cost-effective energy-related home repairs. Overall goals include to:
Target energy assistance to individuals who are in most need Minimize health and safety risks that result from high energy bill burdens on low-income Americans
Prevent homelessness as a result of the inability to pay home energy bills
Increase efficiency of energy usage of low-income families
Eligibility Criteria: 1
States, federally recognized tribes, and tribal organizations (including Alaska native villages), and territories are eligible to apply for direct LIHEAP funding.
LIHEAP regulations state that funds are available to households (defined as any individual or group of individuals who are living together as one economic unit where their residential energy is purchased jointly) in which one or more individuals are receiving:
Assistance from a state program funded by Title IV of the Social Security Act (TANF)
Supplemental income payments under Title XVI of the Social Security Act
Food stamps under the Food Stamp Act or SNAP
Other payments under Title 38 of the United States Code/ Veterans’ and Survivors’ Pension Improvement
Priority is given to households that:
Have high home “energy burdens,” calculated by dividing household expenditures of home energy divided by their total household income.
Those with the “highest home energy needs,” determined by taking into account the energy burden of the household and each household’s unique situation, which can include having members of vulnerable populations such as young children, the elderly (determined as individuals over the age of 60), and disabled individuals.
LIHEAP eligibility is capped at: 2
If the household income is no more than the greater of 150% of the Federal Poverty Guidelines* or 60% of the State Median Income and
a state may not exclude a household from eligibility in a fiscal year if their household income is less than 110% of the Federal Poverty Guidelines
Note: For 2019, 150% of the Federal Poverty Guidelines for a family of four is an annual income of $38,625. 110% of the Federal Poverty Guidelines for a family of four is $28,325.
Federal Eligibility vs. State Eligibility requirements
Although requirements on the federal and state levels vary little, state eligible households refer to those who possess an income no greater than the State Maximum LIHEAP Standard, which can vary from 110% of the Federal Poverty Guidelines up to the federal maximum LIHEAP income standard.
As a result, while households may be federally eligible for LIHEAP benefits, they also must fulfill state eligibility criteria because state institutions are generally responsible for distributing the federal LIHEAP funds.
How LIHEAP is Funded:
LIHEAP funds are authorized and managed by the federal Health, Education, Labor, and Pensions (HELP) oversight committee. Funds are not allocated until the federal budgeting process where Congress allocates dollars to each appropriations bill. LIHEAP is included under the Labor, Health, and Human Services bill.
Congress issues a block grant to LIHEAP with a formula based on each state’s weather patterns,
fuel prices in the region, and
the low income population.
This formula is developed by the Secretary of Human and Health Services.
After Congress issues a block grant to each state, the funds are passed on to a household’s utility companies through direct grants.
Funds are used for heating and cooling assistance, and up to 15% (or 25% with a waiver) for crisis/weatherization assistance.
LIHEAP Statistics: 3
All 50 states, the District of Columbia, five U.S. territories, and over 150 tribes and tribal organizations receive LIHEAP grants annually.
In FY 2017, the Block Grant appropriated was $3.39 billion; in FY 2018, $3.64 billion; and in FY 2019, $3.65 billion.
For FY 2017, LIHEAP provided the 50 states and the District of Columbia with $1.8 billion for heating assistance, 19 states were provided $233 million for cooling assistance, 49 states were provided $575 million for crisis assistance, and 48 states were provided $374 million for low-cost residential weatherization and energy-related home repairs. 4
LIHEAP does not provide all services to all states (for example, not every state uses LIHEAP funding for cooling assistance, while they may use state/local funds for this type of assistance.)
Shortcomings of LIHEAP: 5
According to the Campaign for Home Energy Assistance 2017 statistics, about 30% of a low-income family’s earnings are spent on energy bills.
Low funding allows LIHEAP to accommodate only a small percentage of eligible households.
Since 2010, 35% of LIHEAP funding has been cut, dropping from $5.1 billion dollars to $3.3 billion dollars.
Due to these decreasing LIHEAP funds, the number of households served by LIHEAP has decreased significantly since FY 2010. In 2010, 8.1 million households were served, where in 2017, only 6.7 million households were served. This is only about 19% of eligible low-income households.
Houses that receive funding receive too little and must rely on additional non-federal programs.
In 2017, the average annual assistance provided by LIHEAP per household was only an average of $425.
Increased housing costs take a majority of a low-income household’s income.
The decreasing allotment of LIHEAP funds per household is becoming especially detrimental to low-income families as the cost of home energy continues to increase by over 50% since 1996, costing families more than 40% of their pre-tax incomes.
These factors have caused the low-income economic squeeze phenomenon where low-income households must choose to dedicate the majority of their incomes to home energy, transportation, or ample nutritious food.
Millions of marginalized individuals are at risk.
LIHEAP’s inability to reach all individuals in need due to its under-funding especially affects Native American tribes who frequently do not receive their full allotment of funds.
Undocumented immigrant families also do have access to LIHEAP support due to eligibility criteria that requires submitting certain federal documents.
Funds run low before the end of the fiscal year without enough measures in place to aid with planning.
Decreases in LIHEAP funds each fiscal year (and delays when receiving appropriations) affects states’ abilities to properly plan their spending.
Because the new fiscal year aligns with colder fall and winter months, states must rely on carryover funds from the previous fiscal year to fully fund heating assistance, (one of their most widely used services,) until an appropriations bill is passed.
Because the states may not know the full amount they will be granted well into the start of a new fiscal year, they are unable to fully plan how to distribute funds and how much to reserve for potential crises.
Endnotes
Information from LIHEAP Statute and Regulations published by the Office of Community Services at the U.S. Department of Health and Human Services, https://www.acf.hhs.gov/ocs/resource/liheap-statute-and-regulations
According to the Office of Community Services LIHEAP Fact Sheet, https://www.acf.hhs.gov/ocs/resource/liheap-fact-sheet-0
Information from LIHEAP Funding Releases of Block Grant Funds, https://www.acf.hhs.gov/sites/default/files/ocs/comm_liheap_q1release_dcl_statesandterr.pdf
Information from HHS LIHEAP fact sheet, https://www.acf.hhs.gov/ocs/resource/liheap-fact-sheet-0
Information from the 2017 LIHEAP White Paper by the Campaign for Home Energy Assistance, https://static1.squarespace.com/static/58d34ef4725e25f7c638d984/t/58f2e8a2e6f2e13ee38bba9b/1492314291049/2017-Campaign-White-Paper.pdf