Appropriations

President's Budget Cuts LIHEAP by 22% - Eliminates 1.2 Million Households

February 4, 2008

The President's Budget for FY 2009 would reduce the budget for the Low Income Home Energy Assistance Program (LIHEAP) by 22% from $2.57 billion to $2.0 billion by reducing the block grant from $1.98 billion to $1.7 billion and the emergency contingency fund from $590.3 million to $300 million.

The impact on low income households would be severe.  States would have few choices but to either reduce the share of winter home costs covered from 36.3% to 28.2% or the number of households served by 1.2 million from 5.8 million to 4.6 million. The Budget recommendations are very disappointing in light of continued high home energy prices and reports of rising arrearages and shut-off rates across the country.

Winter heating costs for the current year are projected by the US Energy Information Administration to be $989. LIHEAP currently covers only about 36.3% of this amount with an average grant of $359 per eligible household.

Attached is table illustrating the state-by-state impact of the cuts to the block grant portion of the program, as well as, the recent distribution of emergency contingency funds.

• Download FY 09 Appropriations Table