Congress Needs To Act Quickly To Approve Home Heating Aid As originally appearing in The New Hampshire Union Leader
James T. Brett is the president and CEO of The New England Council
Last month, at the New England Council’s 2010 Annual Dinner in Boston, New Englander of the Year Award recipient Charles Shivery, the Chairman and CEO of Northeast Utilities, announced a $1 million donation from the Northeast Utilities Foundation to benefit fuel assistance programs in the states where the company provides energy. This generous donation will provide much-needed support to low income families in Connecticut, Massachusetts, and New Hampshire in the coming winter months. While our economy still lags and thousands are still unemployed, this assistance will be critical to ensuring that families are able to keep their homes warm during the harsh New England winter.
Such private donations may prove even more critical this winter unless Congress takes action to ensure that the Low Income Heating Assistance Program, known as “LIHEAP,” is adequately funded in Fiscal Year 2011.
LIHEAP is a federally-funded program administered by the U.S. Department of Health and Human Services’ Administration for Children & Families. The program assists low income households—particularly those with the lowest incomes that pay a high proportion of that income for home energy costs—to meet their energy needs. Every year, tens of thousands of families in New England depend on LIHEAP for help paying their winter heating bills. The entire Rhode Island Congressional delegation have been vocal supporters of the program over the years.
In Fiscal Year 2010, Congress funded LIHEAP at $5.1 billion—the same level at which it had been funded since 2005. However in January, President Obama proposed cutting that funding to $3.3 billion, with a $2 billion contingency fund. The House of Representatives passed legislation that level-funded the program at $5.1 billion, but the Senate only approved $3.3 billion in LIHEAP funding. The program is currently funded at that lower level of $3.3 billion, marking a 36 percent decrease from last winter’s funding level.
When adequately funded, LIHEAP can have a tremendous impact here in New Hampshire, and throughout the New England states. In fiscal year 2009, when LIHEAP was funded at $5.1 billion nationally, New Hampshire received $47.7 million. These funds helped 44,425 struggling households to pay their heating bills that winter. Today, with so many New Hampshire residents still reeling from the economic downturn, there will surely be just as many families, if not more, in need of that kind of assistance.
If that same level of funding is not made available this winter, the situation could be quite dire for many households in colder states. With the national unemployment rate still hovering near ten percent, millions of families and individuals, including many elderly, will undoubtedly struggle to keep the heat on in the coming months. Last winter, approximately 7 million people across the nation applied for fuel assistance, and that number is expected to increase to 8 million this winter.
At the same time, heating costs are only increasing. According to the federal Energy Information Administration, anticipated colder weather this winter combined with higher energy prices will result in the average cost of heating a home with oil this winter to increase as much as 12%. Here in the Northeast where we have some of the lowest temperatures, the average cost of heating a home with oil this winter is estimated at $2,201. Those who use electric or natural gas will fare somewhat better, with estimated costs of $1,485 per household with electric, and $1,153 per household with natural gas. Yet unless Congress takes action to fully fund LIHEAP, the maximum subsidy available to the poorest families will be only $515.
John Drew, the CEO of Action for Boston Community Development, New England’s largest human service agency, recently described this situation as a “perfect storm, particularly for seniors and low-income families. However, it is not too late to prevent this storm from striking New England.
Certainly no one envies our leaders in Washington the challenges they face in allocating our limited federal dollars. The lame duck session already has a laundry list of issues to address, and the list will only be longer for the 112th Congress in January. There are countless demands for federal funding for many worthy causes, particularly in today’s difficult economy. But it is because of our current economic situation and record high unemployment rates that so many families in New England and across the country will struggle to make ends meet this winter. We urge Congress take action and find a way to adequately fund LIHEAP, lest they leave countless New England families, quite literally, out in the cold.
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