Image by Gerd Altmann from Pixabay 

April 4, 2026 - The President’s Fiscal Year 2027 budget proposal would eliminate $4 billion in funding for the Low-Income Home Energy Assistance Program (LIHEAP), cutting off vital support to approximately 6 million low-income households that rely on the program to afford home heating and cooling. This proposal comes at a time when energy insecurity is already at alarming levels. Currently, one in six U.S. households is behind on their energy bills, with total utility debt reaching approximately $25 billion—the highest level since 2021 and a 30 percent increase since the end of 2023.

Recent Census data further underscores the crisis: 37.4 percent of households earning under $50,000 reported being unable to pay an energy bill at least once in the past year.

“Low-income families need support now more than ever,” said Mark Wolfe, Executive Director of the National Energy Assistance Directors Association (NEADA). “I am deeply disappointed that the Administration is proposing to eliminate LIHEAP funding. Families are already struggling with rising energy costs and as gasoline, food, and heating oil prices surge due to the war in Iran, this is absolutely the wrong time to cut energy assistance to some of the poorest families in the nation.”

The Administration’s proposal also relies on several inaccurate claims that mischaracterize the purpose and effectiveness of LIHEAP:

• Outdated claims of fraud: The budget cites a 15-year-old Government Accountability Office (GAO) report. Since then, federal and state partners have implemented all recommended reforms to strengthen program integrity, including modernized application processes and enhanced auditing.

• Misunderstanding of program impact: The assertion that LIHEAP is unnecessary due to state shut-off protections ignores how the program operates. LIHEAP serves households nationwide—providing cooling assistance in the South, heating support in the Midwest and Northeast, and relief during extreme weather events across the West. Benefits are based on income eligibility and directly reduce household energy burdens.

• Limits of shut-off moratoriums: Seasonal protections only delay disconnections— they do not eliminate debt. Once moratoriums end, families must still pay accumulated balances. Without LIHEAP, many more households would face service shut-offs. Additionally, these protections often do not apply to municipal utilities, cooperatives, or delivered fuels such as heating oil and propane.

• Broad national impact: While the proposal highlights specific states, more than half of LIHEAP funding supports states that voted for President Trump in 2024. Eliminating the program would harm vulnerable households nationwide not just in select regions.

At a time of rising energy prices and growing economic pressure on working families, eliminating LIHEAP would deepen the nation’s energy affordability crisis and leave millions of vulnerable households without the assistance they need to keep their lights on and their homes safe. Congress should reject this proposal and continue its longstanding bipartisan commitment to protecting low-income families from energy insecurity.

Source: NEADA