Commodities

Government shutdown expected to delay energy assistance for low-income households


The government shutdown is expected to delay critical energy assistance that helps families stay warm as the temperature drops. It could further strain many of the same families who rely on SNAP grocery benefits, which are also facing disruptions.In fiscal year 2024, nearly 6 million households used the Low Income Home Energy Assistance Program, commonly referred to as LIHEAP, to help pay their bills, according to our Get the Facts Data Team’s analysis of government data. The analysis found that average heating benefits per household differed from state to state, ranging from $1,487 in Alaska to $118 in Arkansas. The government shutdown is expected to push back the delivery of that aid, at a time when many families are bracing for higher costs. Mark Wolfe, executive director of the National Energy Assistance Directors Association (NEADA), said states usually receive funding from the federal government in early November. He said the process usually takes weeks, and it can’t happen during the shutdown. “In a practical sense, what it means is that families who need help now will not be able to get it until next month, and that’s if everything goes well, and the government reopens this week,” Wolfe said. Wolfe said, even when the government reopens, there is expected to be a lag. He said delays could potentially be made worse by the Trump administration’s decision to lay off LIHEAP’s administrative staff earlier this year. “They’ll have to find other staff to process the grants and get them out the door. So we could be even looking at early January,” Wolfe said. Emily Hilliard, press secretary for the U.S. Department of Health and Human Services, blamed Democrats for funding disruptions during the government shutdown. “The Trump Administration is committed to reopening the government for the American people,” Hilliard said. “Once the government reopens, ACF will work swiftly to administer annual awards.” Hilliard didn’t provide specifics on how long that’s expected to take, and whether recent firings could impact the timeline. In the meantime, energy assistance directors are calling on utilities to suspend service shut-offs until households regain access to LIHEAP. Wolfe said some states plan to require continuous service, but that won’t protect everyone. “For those families that use heating oil or propane, states can’t ask those companies to keep delivering fuels because they’re independent companies. They’re not regulated monopolies like natural gas or electric companies are,” Wolfe said. “Those are the families who are most at risk right now.” If you’re facing financial challenges, Wolfe recommends alerting your utility company as soon as possible. He added, while the delivery of funds is expected to be delayed, most states have opened their application process. The disruption comes as rising bills are expected to increase demand for the program. According to NEADA, the average cost of home energy is projected to increase nearly 8% this winter. 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. Dina El-Mahdy, a professor of accounting at Morgan State University, is calling on Congress to increase the budget for LIHEAP. “Definitely, the current funding is not going to be enough to cover the current demand for market participants,” El-Mahdy said. “The budget needs to go up. That’s a no-brainer. These are basic human needs.” In his budget request earlier this year, President Donald Trump proposed ending LIHEAP. In a document explaining his proposal, the administration argued that the program is unnecessary because states have policies preventing utility disconnections. The administration also raised concerns about fraud and argued the program rewards states with “anti-consumer policies that drive up home energy prices.””The Budget proposes to end this program and to instead support low-income individuals through energy dominance, lower prices, and an America First economic platform,” the budget request furthered. The president’s proposal would need congressional approval to become a reality, which is seen as unlikely. The LIHEAP program has received bipartisan support for decades. More from the Washington Bureau:

The government shutdown is expected to delay critical energy assistance that helps families stay warm as the temperature drops.

It could further strain many of the same families who rely on SNAP grocery benefits, which are also facing disruptions.

In fiscal year 2024, nearly 6 million households used the Low Income Home Energy Assistance Program, commonly referred to as LIHEAP, to help pay their bills, according to our Get the Facts Data Team’s analysis of government data.

The analysis found that average heating benefits per household differed from state to state, ranging from $1,487 in Alaska to $118 in Arkansas.

The government shutdown is expected to push back the delivery of that aid, at a time when many families are bracing for higher costs.

Mark Wolfe, executive director of the National Energy Assistance Directors Association (NEADA), said states usually receive funding from the federal government in early November. He said the process usually takes weeks, and it can’t happen during the shutdown.

“In a practical sense, what it means is that families who need help now will not be able to get it until next month, and that’s if everything goes well, and the government reopens this week,” Wolfe said.

Wolfe said, even when the government reopens, there is expected to be a lag. He said delays could potentially be made worse by the Trump administration’s decision to lay off LIHEAP’s administrative staff earlier this year.

“They’ll have to find other staff to process the grants and get them out the door. So we could be even looking at early January,” Wolfe said.

Emily Hilliard, press secretary for the U.S. Department of Health and Human Services, blamed Democrats for funding disruptions during the government shutdown.

“The Trump Administration is committed to reopening the government for the American people,” Hilliard said. “Once the government reopens, ACF will work swiftly to administer annual awards.”

Hilliard didn’t provide specifics on how long that’s expected to take, and whether recent firings could impact the timeline.

In the meantime, energy assistance directors are calling on utilities to suspend service shut-offs until households regain access to LIHEAP. Wolfe said some states plan to require continuous service, but that won’t protect everyone.

“For those families that use heating oil or propane, states can’t ask those companies to keep delivering fuels because they’re independent companies. They’re not regulated monopolies like natural gas or electric companies are,” Wolfe said. “Those are the families who are most at risk right now.”

If you’re facing financial challenges, Wolfe recommends alerting your utility company as soon as possible. He added, while the delivery of funds is expected to be delayed, most states have opened their application process.

The disruption comes as rising bills are expected to increase demand for the program. According to NEADA, the average cost of home energy is projected to increase nearly 8% this winter.

Dr. Dina El-Mahdy, a professor of accounting at Morgan State University, is calling on Congress to increase the budget for LIHEAP.

“Definitely, the current funding is not going to be enough to cover the current demand for market participants,” El-Mahdy said. “The budget needs to go up. That’s a no-brainer. These are basic human needs.”

In his budget request earlier this year, President Donald Trump proposed ending LIHEAP. In a document explaining his proposal, the administration argued that the program is unnecessary because states have policies preventing utility disconnections. The administration also raised concerns about fraud and argued the program rewards states with “anti-consumer policies that drive up home energy prices.”

“The Budget proposes to end this program and to instead support low-income individuals through energy dominance, lower prices, and an America First economic platform,” the budget request furthered.

The president’s proposal would need congressional approval to become a reality, which is seen as unlikely. The LIHEAP program has received bipartisan support for decades.

More from the Washington Bureau:



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