President’s FY2014 LIHEAP Budget: $3 billion
Today, the President proposed investing $3.02 billion in the Low Income Home Energy Assistance Program (LIHEAP). Overall, the President requested roughly $3 billion ($2.8 billion in formula and $150 million in contingency). The Administration adjusted the formula so that additional funds could be retained in the Tier 1 distribution. Additionally, $50 million is available for making competitive grants to assist low-income households in reducing household energy burdens and for conducting a national evaluation of such grants.
If enacted by Congress, this proposal would result in devastating and unacceptable cuts to LIHEAP services across the country. We all know that economic times are hard and energy prices remain high. Millions of struggling American households rely on targeted, short-term assistance from the LIHEAP program to help cover their heating costs in the winter and cooling costs in the summer. This program is not an entitlement or a luxury – it is a critical bridge for those Americans who are hurting the most.
Over the past decade, LIHEAP has transitioned from a regional program to a national program serving all 50 states. At peak funding in 2010, the program was national in scale but still only had enough resources to support roughly 1/4 of eligible households. Unfortunately, since then, funding for LIHEAP has been cut drastically – to $4.7 billion in FY2011 and less than $3.5 billion in FY2013. This represents a 30 percent decline in funding since 2010.
With decreased funding over the past several years, states are forced to provide smaller grants to fewer households. Additional cuts to the program will place additional stress on the program.
If the goal is a robust, efficient and effective national LIHEAP program we need to reverse the trend of cutting funding and build back to the authorized spending level of $5.1 billion. The Campaign will continue to work with our vast network of partners and champions on Capitol Hill to continue to make the case. See the facts on liheap!
LIHEAP WEEK OF ACTION CAMPAIGN
On Wednesday, April 10th, LIHEAP supporters from across the nation are coming to Washington, D.C. to urge Congress to restore LIHEAP funding to at least $4.7 billion in 2014. On LIHEAP Action Day a bipartisan coalition of policymakers, industry leaders, and community advocates from all 50 states will gather on Capitol Hill, where they will meet with Members of Congress to discuss the importance of fully funding LIHEAP in fiscal year 2014.
See Coalition of Northeast Governors CONEG Testimony_ House-Labor-HHS_FY2014 LIHEAP Appropriations to Appropriators asking for $5.1 billion in FY2014.
With the March 1st sequestration deadline now here, the President is required under the August 2011 debt limit increase law (PL 112-25) to issue the order to begin the cuts under sequester. The Office of Management and Budget is expected to then transmit a report to Congress detailing the spending cuts.
According to recent CBO reports, the LIHEAP program would be cut by roughly 5%, or $185 million of the $3.47 billion that was appropriated in the FY2013 funding measure.
See FY2013LIHEAPAppropriationsFinalB cuts.
The next opportunity to avert these reductions will occur over the next few weeks as Congress finishes negotiations over the FY2013 spending bill, which expires on March 27th. However, with disagreements on what to offsets could be used to replace the cuts, it is unclear whether an agreement could be made.
This week 40 Senators sent a letter to the President requesting that they include $4.7 billion in their FY2014 submission to Congress.12 05 12 LIHEAP Ltr to President
The House also sent a similar letter asking for LIHEAP House FY2014 Letter to President.
FY2013 LIHEAP Funding Released to States
The Health and Human Services recently announced that they are releasing FY2013 LIHEAP funds, as dictating in the Continuing Resolution. The attached table reflects the levels states will receive under this initial release. Roughly 90 percent of the total regular block grant funding will be provided in this initial release. The overall funding and formula uses the same distribution provided under the terms of the FY2012 appropriations.
See explanation below from the Administration. Public Release Table 102912 1 SEP jc (2).pdf
Funding Released Under the Continuing Resolution
This funding is provided under the Continuing Appropriations Act, 2013 (P.L. 112-175) – or “CR” – and represents roughly 90 percent of the regular block grant funding provided in FY 2012. Please find attached a table detailing the allocations to grantees made by this release. Grantees with completed FY 2013 plans will be sent award letters with their individual allocations.
Each state received the lesser of 90 percent of the annual allocation provided under the CR and the amount the state requested for the first two quarters of FY 2013. A state that requested less than 90 percent of its annual allocation may revise its request for the first or second quarter up to this amount.
House -Senate LIHEAP champions sent support Letters asking that HHS release quickly as much CR LIHEAP funds as possible. Senate letter-House letter
The CR extends the FY12 funding level for LIHEAP (plus an across-the-board increase in funding of 0.612%) to reach an annualized funding level of $3.493 billion in formula grants. The CR also directs HHS to distribute funds under the same formula compromise as utilized in FY12. (i.e., $497 million to be distributed according to the “new” LIHEAP formula, with the remainder, about $2.996 billion, to be distributed according to the “old” LIHEAP formula.)
HHS has not yet announced the amount of funds that would be distributed to the states pursuant to the CR, but they are working with OMB to try to be able to make that announcement.
Campaign For Home Energy Assistance
14 Governors Sign Letter Supporting LIHEAP funding in Continuing Resolution
Governor Patrick (MA) and 14 other Governors signed-on to a letter aksing that LIHEAP funding be included on the CR. Congress to reach an agreement on a 6-mo CR to fund the government through March at FY12 levels. This Governors LIHEAP support letter 09_12_12 requests that the full year appropriations for LIHEAP be made available up-front in any short term spending bill.
137 House Members sign bipartisan letter requesting $5.1 billion for LIHEAP in FY2013
FY13LIHEAP Approps Letter
Campaign Rejects the President’s FY2013 LIHEAP Budget – Supports $5.1 billion in funding
On Monday, the President proposed investing $3.02 billion in the Low Income Home Energy Assistance Program (LIHEAP). We recognize and appreciate that this is a significant increase in the amount of money the Administration proposed for FY 2012. At the same time, if enacted by Congress, this proposal would result in devastating and unacceptable cuts to LIHEAP services across the country.
We all know that economic times are hard and energy prices remain high. Millions of struggling American households rely on targeted, short-term assistance from the LIHEAP program to help cover their heating costs in the winter and cooling costs in the summer. This program is not an entitlement or a luxury – it is a critical bridge for those Americans who are hurting the most.
Over the past decade, LIHEAP has transitioned from a regional program to a national program serving all 50 states. At peak funding in 2009, the program was national in scale but still only had enough resources to support roughly 1/4 of eligible households. With decreased funding over the past several years, states are forced to provide smaller grants to fewer households. Additional cuts to the program will place additional stress on the program.
If the goal is a robust, efficient and effective national LIHEAP program we need to reverse the trend of cutting funding and build back to the authorized spending level of $5.1 billion. The Campaign will continue to work with our vast network of partners and champions on Capitol Hill to continue to make the case. FY2013 LIHEAP Facts
Campaign For Home Energy Assistance
103 LIHEAP supporter in the House of Representatives sent aFY2013 LIHEAP SUPPORT LETTER TO PRESIDENT OBAMAto the President requesting at least $4.7 billion for the program in the upcoming FY2013 submission to Congress. The White House has indicated this will be submitted on February 13.
HHS Released Final FY2012 Funding Levels:
HHS released the remaining FY12 funding for LIHEAP. The total released today is $863M, bringing the total released FY12 funding to $3.4B.
The chart to see what your state is receiving liheap allocations.
Bipartisan Group of Senators Urge President to Fully Fund LIHEAP in FY2013. See letter1.18.12 President FY13 LIHEAP signonl
House Releases Conference Report and Moves Closer to Vote – LIHEAP Funded at $3.478 B
Today, the House is expected to take up the Omnibus FY2012 appropriations package, which contains funding for LIHEAP in the Labor-HHS-Education Subcommittee. The House recently released their Conference Report. With the current CR expiring today, both chambers will have to move quickly to approve this package.
As reported yesterday, the bill provides $3.478 B for LIHEAP. In what appears to be a compromise between the House and Senate on the formula distribution, roughly $3 billion would be distributed under the old formula (tier 1). There is no reserve for contingency funding. Additionally, $3 million would be provided for Training and Technical Assistance.
This overall funding is less than current year’s level ($4.7 billion), but higher than the President’s request of $2.57 billion.
Now that this joint statement has been released, we have additional information on other programs of interest:
Weatherization Assistance Program: $65M is provided, with another $3M for training and technical assistance. This is a rather large cut from the $174M in FY11.
State Energy Program: It is the higher Senate level at $50M. This was the same level as FY11.
The # of Military Families Receiving LIHEAP Increases by 156% Since 2008
The National Energy Assistance Directors’ Association (NEADA) representing the state directors of the Low Income Home Energy Assistance Program (LIHEAP) released the results of their latest survey of LIHEAP recipients. The survey was based on phone calls to more than 1,000 current program recipients. A copy of the survey is on the NEADA website – www.neada.org.
Key Findings: The number of veterans has increased from 12 percent of total recipients to 20% since 2008, increasing from 695,760 in FY 2008 to 1.78 million in FY 2011. During this period the overall program grew by 54% while the number of veterans households increased by more than 150%. Veteran households in fact accounted for almost 35% of total growth in the program between FY 2008 and 2011. Of specific interest, 12% of all veterans receiving LIHEAP have served in Iraq or Afghanistan. Seven percent of military families are currently serving in the military.
According to Mark Wolfe, Executive Director of NEADA, the increase in veterans’ families mirrors the overall increase in LIHEAP across the country. It also clearly demonstrates that LIHEAP is reaching some of the nation’s poorest families – including those who have served their nation in times of peace as well as war.
Sens. Reed (RI), Snowe (ME), and Sanders (VT) will soon introduce the “LIHEAP Protection Act”. This legislation would maintain level-funding for LIHEAP at last year’s level of $4.7 billion to help low-income households cope during this tough economic climate. See bill draft language. LIHEAP protection act bill
Senate LIHEAP FY2012 Support Letter:
Senator Snowe (R-ME) and Reed (D-RI) spearheaded a letter with a bipartisan group of 34 Senator to Congressional leadership urging them to fund the LIHEAP program at $4.7 B for FY2012. Additionally, the letter asks that Congress provide additional funding in the next Continuing Resolution. 11.11 LIHEAP
Supporters in the House sent a letter to leadership asking that Congress provide $4.7 billion for LIHEAP in the FY2012 funding negotiations. LIHEAP Letter to Leadership 11-04-11
Attached is the final Governor letter Gov – LIHEAP that was sent to Congressional leadership urging them to fund the LIHEAP program at $4.7 B for FY2012.
Recession Increases Number of Children Living in Low-Income Families
The 2011 KIDS COUNT Data Book: New Data & State Rankings on Child Well-being
According to data released by the Annie E. Casey Foundation in its annual KIDS COUNT ® Data Book, over the last decade there has been a significant decline in economic well-being for low-income children and families. Data also reveals the impact of the job and foreclosure crisis on children. This year’s message explores how children and families are faring in the wake of the recession and why it matters to help kids reach their full potential to become part of a robust economy and society. Read the full 2011KCDB_FINAL_S_f
NEADA/NASCSP Respond to Heritage Poverty Report
Today the The National Energy Assistance Directors’ Association (NEADA) and the National Association for State Community Services Programs (NASCSP) today released a letter to the Heritage Foundation expressing their concern that the core conclusions of their recently released report, “What is Poverty Today” is based on a misleading interpretation of the Residential Energy Conservation Survey (RECS) data. letter to Heritage .
Congress wraps up FY2011 Budget: LIHEAP funded at $4.71 billion
The Congress finished their FY2011 Continuing Resolution for the remainder of the year. The bill provided $4.71 billion ($4.51 in formula and $200.3 million in contingency) for the Low Income Home Energy Assistance Program (LIHEAP).
The bill language also sets the state income eligibility level back to 60% of the state median income (In both the FY2009 and FY2010 appropriations acts, Congress gave states the authority to raise their LIHEAP eligibility standards to 75% of state median income).
As previously reported, with the help of our LIHEAP champions on the Hill, much of the LIHEAP funding for this year was attached to the CR back in December so that additional funds would be made available to states during a time of the year when many states were trying to cope with a cold weather season that typically causes a spike in demand.
With roughly $4.46 b ($4.26 b in formula and $200 m in contingency) already released, HHS allocated the remaining roughly $240 million so that states received the same amount in formula that they got in FY2011.
See total amounts allocated to states this year (FY2011).
President’s FY2012 Budget Request
The President released his budget for FY2012, which included recommendations to slash the LIHEAP program from $5.1 billion to $2.57 billion, a 50% reduction. This request would roll the program’s funding back to its 2008 levels.
During tough economic times and with home heating and cooling prices on a steady incline, the decision to drastically cut the vital LIHEAP program is irresponsible. If allowed to stand, this reduction will have dramatic and devastating effect on the millions of working people and elderly nationwide who benefit from this effective program.
Already a bi-partisan chorus of lawmakers and commentators have decried cuts to LIHEAP in a letter to the Administration. Regardless, a tough fight lies ahead to maintain LIHEAP funding at an appropriate level, and your continued support and assistance will be crucial in that process.
1-page Save LIHEAP fact sheet with talking points
White House Justification of FY2012 LIHEAP Cut:
During this period of tough budget choices, the President’s 2012 Budget provides $2.57 billion for the Low Income Home Energy Assistance Program (LIHEAP) to help low-income families offset a portion of their home heating and cooling costs. This includes $1.98 billion in base grants and $590 million in contingency funds to allow the Administration to respond to energy-related emergencies. The 2012 Budget does not re-propose the mandatory funding trigger that was included in prior Budgets. Reflecting current forecasts for more moderate energy prices in winter 2011-2012, this returns LIHEAP funding to historic levels received for 2008 prior to the energy price spikes. Current energy price forecasts predict relatively moderate price increases for winter 2011-2012 compared to this winter, with prices remaining well below the peaks experienced in 2008. For example, the West Texas Intermediate spot price for crude oil is expected to be $95 per barrel in the fourth quarter of 2011 compared to a peak of nearly $124 per barrel in the second quarter of 2008. Likewise, the Henry Hub spot price for natural gas is expected to be $4.52 per thousand cubic meters in the fourth quarter of 2011, compared to a peak price of $11.72 per thousand cubic meters in the second quarter of 2008.1 The Administration will continue to monitor energy prices going forward and will be willing to revisit program needs if there are significant price increases.
Additionally, the Administration proposes to reauthorize and modify the Low Income Home Energy Assistance Program (LIHEAP) with reforms aimed at strengthening program integrity and fraud prevention
To read the full justification provided by ACF. http://www.acf.hhs.gov/programs/olab/budget/2012/cj2012.html