American Rescue Plan funding doubles heating assistance for those in need

On Tuesday, the Biden administration announced that over the last year it has provided nearly $8 billion in assistance to lower-income Americans via the Low Income Home Energy Assistance Program. That’s almost double the funds previously disbursed by the program, which was boosted by $4.5 billion by the American Rescue Plan.

Signed into law by President Joe Biden in March 2021, the COVID relief plan passed Congress without any votes from Republicans in the House or Senate.

Energy costs increased significantly in 2021, highlighting the need for funds to assist the economically disadvantaged.

The LIHEAP program was first established in 1981 and since then has helped low-income families to offset the costs of their energy bills. Via the Department of Health and Human Services, the administration released radio and television ads instructing households on how to apply for LIHEAP assistance. Every state, territory, and tribal land within the United States has received LIHEAP funding from the Biden administration. This includes over $384 million for Michigan, $472 million for Pennsylvania, $134 million for Georgia, $49 million for Arizona, and $23 million for Nevada.

The funding for LIHEAP is a reversal of policy from former President Donald Trump, who repeatedly proposed completely scrapping the entire program in several of his proposed federal budgets. The Center on Budget and Policy Priorities analyzed Trump’s budget proposal in 2019 and noted that over 5 million households relied on the program for help.

In 2020, the National Energy Assistance Directors’ Association announced their opposition to Trump’s proposed cuts, noting in a release, “5.9 million poor families receiving LIHEAP would have literally been left out in the cold this winter, with many having to choose between paying for food or their energy bill.”

In a release, the Biden administration also noted that $100 million of $500 million slated to be distributed over a five-year period to states as part of the Infrastructure Investment and Jobs Act had been sent out.

Published with permission of The American Independent Foundation.