LIHEAP Opens Amid Changes, Economic Stress

While LIHEAP has been operating in some states since at least September, it kicked off in the country’s more populous states on Monday, November 3: Ohio, New York, New Jersey, Pennsylvania, Illinois, Colorado, and Massachusetts. 

Already long lines have been reported in New York and Pennsylvania, and administrators in other states are predicting record numbers of applicants. On a related front, the Wall Street Journal reported November 3 “a surge in service shutdowns just as economic woes are pushing up the number of households falling behind on bills.” 

Since Congress doubled funding for the program last month, most states are either expanding their income eligibility guidelines or increasing benefits, or both, according to a survey by NEADA and the LIHEAP Clearinghouse.  Under the legislation that increased LIHEAP funding, states are allowed to increase their maximum income eligibility to 75 percent of their state’s median income. Formerly the maximum was the greater of 150 percent of federal poverty guidelines or 60 percent of state median income.

While none of the larger states mentioned above has adopted the higher amount for regular assistance, Pennsylvania has increased its income eligibility from 150 percent of federal poverty guidelines (FPG) to 60 percent of its state median income (SMI), New Jersey from 175 percent to 225 FPG, and Massachusetts from 200 percent FPG to 60 percent SMI.  New York’s income maximum for regular heating assistance remains at 60 percent of SMI, but effective January 1, eligibility for crisis assistance in New York will be 75 percent of  SMI ($38,512 for a 2-person household; $56,635 for a 4-person household. 

California, which runs its LIHEAP year round, will move from 60 percent of SMI to 75 percent of SMI as of January 1. It has reported a 30 percent increase in the number of households seeking assistance, reflecting the downturn in the economy, increasing home energy prices and the rising numbers of low-income households.

Other states such as Illinois, Colorado, Florida, Ohio and Texas have chosen not to expand their income eligibility, noting that the additional funds will allow them to serve more households, which they hadn’t been able to do under previous funding levels.

Results of the NEADA/ Clearinghouse survey will be posted when all states have responded.

Page Last Updated: November 4, 2008