Trump administration releases funds for low-income HVAC program

The Department of Health and Human Services released $400 million of the program's remaining funds, following states' concerns

Houses

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The Department of Health and Human Services (HHS) last week released $400 million in previously held-up funds for a low-income, HVAC-focused program. 

The big picture: The ‘Low Income Home Energy Assistance Program’ (LIHEAP) helps over six million U.S. households a year pay for heating and cooling bills, weatherization, and other energy-related home repairs.

What’s happening: The program was allocated $4 billion for this fiscal year, but 10 percent remained unspent when the Department laid off its entire staff of nearly two dozen people in early April. 

  • The move sparked concerns among states about not having the money to assist households as cooling season approaches, prompting 13 Senators to urge the administration to reconsider. 
  • “If there’s no staff, how do you allocate the rest of this money?” said Mark Wolfe, a director at the National Energy Assistance Directors Association, at the time. “If we don’t [receive our remaining funds], some states will not run their cooling programs this summer.”

Zoom in: In response to the Senators’ request, on April 30, “[A]ll available LIHEAP funding for this fiscal year will be released,” said Andrew Gradison, an assistant secretary for the Department, in an announcement. “I am committed to ensuring that our programs run efficiently.”

Of note: While the decision eases states’ funding concerns, whether the program’s staff will be rehired remains unclear. The Department didn’t respond to a request for comment. 

The bottom line: The funds were released on May 1, per the announcement.

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