Buzz
As you're probably aware, energy prices continue to climb alongside inflation, and this winter might be especially tough on your finances. While energy-saving tips can help, what your household may truly need is a bit of extra assistance. President Biden's administration has rolled out a plan to offer over $13 billion to support Americans in reducing their energy expenses, and you should consider taking advantage of it if you qualify.
Here’s how you can find out if you’re eligible for the Low-Income Home Energy Assistance Program (LIHEAP) and what steps to take to receive those funds.
What is LIHEAP?
The administration is allocating $4.5 billion to assist low-income families with their winter energy costs this year, according to a fact sheet released this week. Since the federal program operates on a state-by-state basis, your first step to apply is to locate your local office on this list.
Beyond helping with heating and cooling expenses, LIHEAP also covers weatherization costs, allowing you to enhance your home’s overall energy efficiency.
Although this program is not new—it has already supported over 5.3 million households in the past year—the administration is providing extra funding as we face a particularly expensive winter season.
What additional benefits are available?
An additional $9 billion is being allocated to states and Tribal governments for new home efficiency initiatives under the Inflation Reduction Act. Up to 1.6 million households can receive assistance for upgrades, with the program aiming to install as many as 500,000 heat pumps and other major home improvements through insulation and electrical wiring.
The government states that approximately 700,000 homes will be weatherized through the expanded Weatherization Assistance Program, which is part of the Bipartisan Infrastructure Law. If this sounds like complicated politics, here’s the key point: large states—specifically Texas and California—are receiving a significant portion of the funding, with rebates and other financial assistance expected to be available in 2023.
According to CBS News, to get ready for the rollout of the rebate program, consult with contractors about your current heating and cooling systems and assess if an upgrade is needed. The rebates are substantial enough that any necessary upgrades could become significantly more affordable.
How to apply for energy assistance through LIHEAP
Visit the list of state offices and locate your state. After selecting it, you can find out what requirements are needed in your area to qualify. For example, in New York, the income eligibility for LIHEAP is 60% of the state median income or 150% of the federal poverty level for households with more than 11 people. You’ll also find the application link and contact details for local offices to answer any questions you may have.
