The Low Income Home Energy Assistance Program (LIHEAP, pronounced "lie" "heap") is a United States federal social services program first established in 1981 and funded annually through Congressional appropriations. The mission of LIHEAP is to assist low income households, particularly those with the lowest incomes that pay a high proportion of household income for home energy, primarily in meeting their immediate home energy needs. The program, part of the United States Department of Health and Human Services (HHS), is funded by grants appropriated from the federal government. Weatherization funding peaked to over 500 million dollars in 2009 and by 2014 had decreased to about 300. In 2014, it served over 80 thousand households in over 40 states, out of over 5 million in the LIHEAP program. Funding during the COVID pandemic reached $8 billion in 2021 and was about $4 billion a year during the rest of the presidency of Joe Biden. In total since 1976, weatherization assisted over 7 million low-income households, which received free home improvements worth an average of about $5,000. The most common measures were furnace replacement, attic and wall insulation, and infiltration reduction. A random trial in Michigan estimated that the measures reduced energy consumption by 10-20 % on average. In 2025, the Trump administration proposed ending the program.
Funding distribution Funding is distributed to each of the fifty states, U.S. territories and tribal governments through the Department of Health and Human Services (HHS). Administration of the program is left up to state, territorial or tribal governments. Congress also provides the President with limited contingency funds each year, which are reserved for emergency situations and released at the President's discretion. LIHEAP offers one-time financial assistance to qualifying low-income households who require support in paying their home heating or cooling bills. Applicants must have an income less than 150% of federal poverty level or 60% of state median poverty level to be eligible, however some states have expanded their programs to include more households (for example, in Massachusetts, applicants must be within 60% of the estimated State Median Income). LIHEAP provides funding assistance to low-income households, targeting those who are truly vulnerable: the disabled, elderly, and families with preschool-age children. Funding is distributed to states or other governmental entities, who administer the program and stems from four sources including: Block grants, the Residential Energy Assistance Challenge Program, Contingency Funds, and Leveraging Incentive Programs. Allocations are based on local climate, economic, and demographic formulas. Additional funds may be available in emergency situations or as match funds when contributions are provided by local governments, private businesses, or non-profit organizations. Final distribution of funds is conducted through the program grantees, which are able to design their programs to meet consumer needs while adhering to the goals and policies of LIHEAP.
State administration State legislatures often provide additional appropriations each year to supplement federal LIHEAP funds. In most states, the program is run on a first come-first served basis. This typically results in a rush to apply and receive assistance, because once the funding pool is empty most energy assistance offices close their doors. In some states, the legislature or governor may make a politically popular gesture of extending eligibility to additional individuals through an emergency bill or executive order, even though this may result in funds being claimed earlier in the winter season. The Home Energy Assistance Target (H.E.A.T.) program is the State of Utah's program through which funds are distributed to the target population. This program is specifically administered by the state and various Associations of Governments (AOG). The Mountain land AOG provides H.E.A.T. assistance to persons in Utah, Wasatch, and Summit Counties. Many state LIHEAP agencies also offer weatherization support, in which contractors are sent to residences to make physical changes to help retain heat or install more fuel-efficient furnaces. Occasionally, acceptance of the weatherization process is mandatory with approval for LIHEAP assistance. Some states have attempted to enact Percentage of Income Payment (PIP) plans within or in addition to the traditional LIHEAP block grant model. Although overall funding has increased since 2002, future funding may be limited due to the recent trend in cutting the budget based on building codes requiring energy efficiency, modern appliances with low energy use standards, and concerns about federal budget sustainability. As the program moves forward, the budget being cut along with the rise of applicants are the two major challenges it faces.
History LIHEAP history began in 1980 when congress created the Low Income Energy Assistance Program (LIEAP), as part of the Crude Oil Windfall Profits Tax Act to answer the concerns of the rising energy prices of the 1970s. In 1981, LIEAP was replaced with LIHEAP as part of the Omnibus Budget Reconciliation Act. In 1984, the Human Services Reauthorization Act added a new goal to provide funds for cooling costs of low-income households. Congress also required the use of more recent population and energy data, which meant the shifting of funds from solely cold-weather states to warm-weather states.
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