Utility bill assistance program hit by federal staff cuts

Federal staff cuts will cripple the effectiveness of state-run utility bill assistance programs, advocates warn, and should be resolved congressionally.

The Energy Association of Pennsylvania said 435,000 residents used the Low-Income Home Energy Assistance Program, or LIHEAP, during the 2023-24 winter season. In total, roughly 5.7 million Americans qualify for the service, which helps families cover heating and cooling bills throughout the year.

“The recently announced staffing changes at the U.S. Department of Health and Human Services impact all federal workers who administer LIHEAP,” said Andrew Tubbs, president and CEO of the association. “This loss of support threatens the critical, life-saving winter heating assistance provided by LIHEAP to the most vulnerable households across the commonwealth.”

About 10,000 department workers have been laid off since President Donald Trump took office in January as part of his administration’s efforts to reduce the size and cost of government. Critics worry that the swift action has left many vital programs used to support low-income Americans without enough manpower to function.

LIHEAP, itself, has received criticism from fiscal watchdogs. The Heritage Foundation argued for the abolition of the federal program to save $120 billion over the next decade. Instead, it advocated for states to create programs.

“States and localities are better positioned to address the needs of their target populations that are not already addressed by other federal means-tested programs,” the foundation noted. “In fact, state policy changes in recent decades have rendered LIHEAP unnecessary. Additionally, endemic fraud and abuse undermine the program’s integrity. Policymakers should end LIHEAP, devolve responsibility for its goals back to the states, and restore real federalism to the welfare system.”

A recent report from the American Legislative Affairs Council shows that Pennsylvania, despite being a natural gas haven, lags the nation in energy affordability.