The Low-Income Home Energy Assistance Program (LIHEAP): Program and Funding Issues Page: 2 of 11
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The Low-Income Home Energy Assistance Program
(LIHEAP): Program and Funding Issues
Summary
The Low-Income Home Energy Assistance program (LIHEAP), established in
1981 by Title XXVI of P.L. 97-35 and currently authorized through FY2004, is a
block grant program under which the federal government gives states and other
jurisdictions annual grants to operate home energy assistance programs for low-
income households. The statute authorizes appropriations for both regular LIHEAP
grants, which are allotted to all states based on a three-tier formula, and for
contingency funds, which are allotted at the Administration's discretion and based
on an emergency need.
The FY2003 regular LIHEAP funding level was $1.788 billion (P.L. 108-7);
there were no new contingency funds appropriated and currently no contingency
funds are available for release. In January 2003, HHS released $200 million in
LIHEAP contingency funds (available from an FY2001 supplemental appropriation
bill P.L. 107-20) in response to increased home heating oil prices. All states received
a part of these contingency funds, which were primarily allocated in the same manner
as regular program funds. On July 10, 2003 the House approved legislation (H.R.
2660) recommending $1.7 billion in regular LIHEAP funds and an additional $100
million in LIHEAP contingency funds for FY2004. On September 10, 2003 the
Senate approved an amended H.R. 2660, appropriating $2 billion for LIHEAP, all of
which would be for regular LIHEAP allotments. In his FY2004 budget, President
Bush also called for $2 billion in total LIHEAP funding, however his request
specified that of this amount $1.7 billion would be for regular fund allotments and
$300 million for contingency funds. As of October 16, 2003, H.R. 2660 is in
conference between the House and the Senate in order to resolve differences.
On April 10, 2003 the House passed its version of the Energy Policy Act of
2003 (H.R. 6). The House bill would raise the regular LIHEAP funds authorization
to $3.4 billion through FY2006. In addition it would authorize bonus payments
received by the federal treasury for leasing the Arctic National Wildlife Refuge to be
appropriated for additional LIHEAP funding, and would require HHS to prepare a
report for Congress on how LIHEAP could more effectively prevent loss of life from
extreme temperatures. According to the committee report accompanying the bill, this
provision is expected to assist HHS in developing a "more accurate" formula for the
distribution of LIHEAP funds.
On July 31, 2003, the Senate suspended debate on the Energy Policy Act (S. 14).
That same day, the Senate passed H.R. 6 with an amendment that replaced the
language in the House version of H.R. 6 with the text of the energy bill the Senate
had passed in 2002 (H.R. 4, 107th). This included authorization of $3.4 billion for
FY2003 through FY2005. As of October 16, 2003, H.R. 6 is in conference between
the House and the Senate in order to resolve differences.
This report provides background on LIHEAP and will be updated as significant
program events or legislative activities occur.
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The Low-Income Home Energy Assistance Program (LIHEAP): Program and Funding Issues, report, October 16, 2003; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc810588/m1/2/: accessed April 19, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.