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Staying Cozy on a Budget

Let's talk about LIHEAP
As the chill of winter sets in, millions of families across the United States face the daunting challenge of keeping their homes warm, especially those on a tight budget. But there's a secret weapon in the fight against the cold — the Low-Income Home Energy Assistance Program, commonly called LIHEAP or HEAP for short. In this article, we’ll explore this program, who it’s for, and other essential details to be aware of when signing up, so you can stay warm and safe.

What is LIHEAP?
LIHEAP is a block grant program designed to give a financial boost to low-income households struggling to pay their energy bills, particularly those with a high energy burden (where a large proportion of a household’s income is dedicated to energy payments), elderly residents, young children, or individuals with disabilities. The goal is to keep their energy costs affordable and prevent energy-related emergencies, such as utility shutoffs or unsafe heating conditions. Since 1981, LIHEAP has been offering a lifeline to folks who need it most and in 2022, provided over $5.8 billion of savings across 5.7 million households.

How does it work?
While the program is funded by the US Department of Health and Human Services (HHS), LIHEAP isn't one-size-fits-all. Individual states, the District of Columbia, Puerto Rico, and tribal governments administer their programs independently. This means each gets to decide how to design it to their local needs, such as by setting eligibility criteria, application procedures, and the specific types of assistance and amounts offered.

So, how do you get in on the action? First, contact your local LIHEAP office: click here to find your state or territory office and here for tribal services. They'll guide you through the application process, which may vary based on where you live.

The types of assistance provided under LIHEAP vary but typically include:

Regular Assistance: This helps you pay part of your energy bills, like for electricity, natural gas, heating oil, or propane.

Crisis Assistance: This comes to the rescue when you're facing an energy-related emergency, such as a utility shutoff, a broken heating system, or a lack of fuel. Assistance in the event of a natural disaster can also sometimes be provided.

Weatherization Services: Some LIHEAP programs offer services to make your home more energy efficient. This can save you money in the long run by reducing your energy costs while also improving your safety and comfort.

Who is eligible?
To qualify for LIHEAP assistance, individuals and families must meet specific income and other eligibility criteria. There are some general guidelines that apply nationwide:

Income Eligibility: Households must have an income at or below 150% of the Federal Poverty Guideline (FPG) or not more than 60% of the state median income (SMI) to qualify and no less than 110% of the FPG. The exact limit may vary based on your household size and location. All contiguous 48 states and DC use the same FPG, which you can find here.

Citizenship and local residency: Applicants must be U.S. citizens, qualified aliens, or part of a tribe and must reside in the state in which they’re applying for assistance.

Proof of Energy Costs: Applicants should provide copies of their recent energy bills.

Other Considerations
LIHEAP can make a significant difference in the lives of low-income families, ensuring they have access to safe and comfortable housing during the cold winter months. However, it's important to be aware of a few other important details when considering signing up for this program.

Timing: LIHEAP typically operates on an annual schedule, so it’s essential to keep an eye out for when the application period opens in your state. It's usually in the fall.

Multiple benefits: In some states, applying for LIHEAP may also automatically enroll you in other assistance programs like SNAP (Supplemental Nutrition Assistance Program) or Medicaid. Similarly, if your household participates in SNAP, Supplemental Security Income (SSI), or Temporary Aid to Needy Families (TANF), you may be automatically eligible for LIHEAP. This can help you receive as much assistance as possible.

Your utility: A household’s utility company must participate in the LIHEAP program. One should call their utility company to confirm participation and eligibility guidelines.

Getting your benefits: Payments are made to your utility on behalf of your household. They are typically applied in full once per year, but depending on your region, may be broken up into smaller amounts that are paid more frequently.

Ask for help: If you're unsure about the application process or eligibility requirements, reach out to your local LIHEAP office. They can provide guidance and answer any questions you may have.

Community solar
If you're exploring energy assistance, you might also want to look into community solar and our marketplace of projects. Community solar allows you to access solar energy at a lower cost than traditional energy sources. It’s a great alternative to installing panels on your home and can be an excellent way to save each month on your energy costs while also supporting clean, renewable energy. When enrolling in both programs, be sure to let your community solar provider know, so they can confirm your eligibility and provide you with as much energy savings as possible.

Conclusion
LIHEAP is a vital resource for low-income households struggling to meet their energy needs, especially during the harsh winter months. By understanding this program, households can take the first step toward receiving the financial assistance they need. Keep in mind most states offer LIHEAP assistance on a first-come, first-serve basis, and because these funds are limited, being eligible does not guarantee you will receive assistance. If you or someone you know is struggling to keep the heat on, we highly recommend applying as soon as your application window opens, usually in the fall.