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LIHEAP: Program and Funding (CRS Report for Congress)

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Release Date Revised June 22, 2018
Report Number RL31865
Report Type Report
Authors Libby Perl
Source Agency Congressional Research Service
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Summary:

The Low Income Home Energy Assistance Program (LIHEAP), established in 1981 as part of the Omnibus Budget Reconciliation Act (P.L. 97-35), is a program through which the federal government makes annual grants to states, tribes, and territories to operate home energy assistance programs for low-income households. The LIHEAP statute authorizes two types of funds: regular funds (sometimes referred to as formula or block grant funds), which are allocated to all states using a statutory formula, and emergency contingency funds, which are allocated to one or more states at the discretion of the Administration in cases of emergency as defined by the LIHEAP statute. States may use LIHEAP funds to help low-income households pay for heating and cooling costs, for crisis assistance, weatherization assistance, and services (such as counseling) to reduce the need for energy assistance. The LIHEAP statute establishes federal eligibility for households with incomes at or below 150% of poverty or 60% of state median income, whichever is higher, although states may set lower limits. The largest share of LIHEAP funding goes to pay for heating assistance. In FY2014, the most recent year for which data are available, approximately 49% of funds went to pay for heating assistance, 7% was used for cooling aid, 21% went to crisis assistance, and 9% was used for weatherization. Funds are also used for administration (9% in FY2014) and up to 10% of a state’s allotment can be carried over for use in the next fiscal year (4% in FY2014). In FY2014, approximately 6.3 million households received heating and/or winter crisis assistance, and 800,000 received cooling and/or summer crisis assistance. For FY2018, the LIHEAP appropriation was $3.640 billion in regular funds, enacted as part of the FY2018 Consolidated Appropriations Act (P.L. 115-141), an increase of $250 million over the FY2017 funding level. Before enactment of P.L. 115-141, on March 23, 2018, LIHEAP had been funded through a series of continuing resolutions (CRs) at the FY2017 appropriations level of $3.390 billion in regular funds, less an across-the-board reduction of 0.6791% (P.L. 115-56). On October 20, 2017, HHS announced the first distribution of FY2018 LIHEAP funds under the CR, and on April 23, 2018, HHS announced the distribution of the remainder of funds appropriated pursuant to P.L. 115-141. For FY2018 funds distributed to states, tribes, and territories, see Table B-1. For FY2019, as in FY2018, the President’s budget proposed to eliminate funding for LIHEAP (see Table B-3). As of the date of this report, the House Appropriations Committee had released its draft FY2019 funding bill for the Departments of Labor, Health and Human Services, and Education (LHHS), which proposed funding LIHEAP at its FY2018 level of $3.640 billion. The Senate Appropriations Committee had not yet released an FY2019 LHHS funding bill.
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