Trump admin lays off staff of low-income HVAC program

The Trump administration last week laid off the entire staff of a $4 billion program that helps low-income households pay for heating and cooling bills, weatherization, and other energy-related home repairs. 

The big picture: The layoffs were part of a broader restructuring on Monday, in which the Department of Health and Human Services fired 10,000 employees. 

• “Our hearts go out to those who lost their jobs,” said Health Secretary Robert F. Kennedy Jr., adding that the department, however, needed to be “recalibrated.”

What’s happening: The ‘Low Income Home Energy Assistance Program’ (LIHEAP) serves over six million U.S. households annually and previously employed two dozen people. 

• “They fired everybody, there’s nobody left to do anything,” said Mark Wolfe, executive director of the National Energy Assistance Directors Association.
• Congress had approved $4.1 billion for the program this fiscal year, and about 90 percent of the money had been sent to states as of October, according to the New York Times. 
• Of note: Rather than sending money directly to homeowners, states receive funds and then allocate them to qualifying households. 

Zoom in: There’s roughly $378 million left in the budget, and states are worried about whether they’ll receive their funds as cooling season approaches. 

• “If there’s no staff, how do you allocate the rest of this money?” Wolfe said. “If we don’t [receive our remaining funds], some states will not run their cooling programs this summer. They’ll scale them back.”
• Minnesota’s Commerce Department, which expected an additional $12 to $13 million to help over 10,000 households, predicts it will run out of money by mid-April.

What to watch: 13 Senators, including two Republicans, on Thursday sent a letter to Mr. Kennedy, urging the administration to reconsider, stating that the program is a “crucial lifeline” for low-income households.  

• While it’s unclear whether a response has been given, a representative for the Department of Health and Human Services told Homepros in an emailed statement, “All statutorily required programs will remain intact.”