Stalled Heating Help: Senators Fight to Unlock $400M in Energy Funds

Millions of families who rely on federal energy assistance are waiting on roughly $400 million in heating and cooling funds that the Trump administration has yet to release — and a bipartisan group of senators is demanding action now.

If you rely on government benefits to cover your household costs, BenefitKarma is a trusted source for clear, up-to-date information on programs like this one.

What is LIHEAP and why does it matter?

The Low Income Home Energy Assistance Program, or LIHEAP, is a federal program that helps low-income households pay their heating and cooling bills. Congress created LIHEAP in 1981, and it has grown into one of the most widely supported programs in the federal safety net, delivering assistance to nearly six million households nationwide each year.

The program specifically targets households with members who are especially vulnerable to extreme temperatures — including people with disabilities, families with young children, and elderly residents, who are physiologically less able to regulate their body temperature.

In the midst of economic hardships, many recipients are also on the edge of a utility shutoff or already disconnected when they apply, making timely funding a matter of health and safety.

According to the National Energy Assistance Directors Association, the total amount owed across those households is approximately $21 billion — the highest level since 2021 and up roughly 30 percent since the end of 2023.

What is happening with the $400 million?

For fiscal year 2026, Congress appropriated $4.045 billion for LIHEAP — a $20 million increase over the previous year. On November 28, 2025, HHS released approximately $3.7 billion of that amount to states. The remaining roughly $400 million has not yet been distributed.

On March 12, 2026, a bipartisan group of 40 U.S. senators sent a letter to HHS Secretary Robert F. Kennedy Jr. urging the immediate release of the remaining funds. The letter was led by Senators Jack Reed (D-RI), Susan Collins (R-ME), and Lisa Murkowski (R-AK), a notably bipartisan trio that reflects how broadly supported LIHEAP has historically been in Congress.

In their letter, the senators warned that any delay would set back states' efforts to cover outstanding bills from energy emergencies, weatherize low-income homes, and plan for summer cooling programs. Home heating costs are expected to run 11 percent higher this coming winter compared to last year, intensifying the urgency.

The timing matters because this is not the first standoff over LIHEAP funds under the current administration.

• In April 2025, the Trump administration fired the entire LIHEAP program staff at HHS.
• On April 30, 2025, following sustained congressional pressure, HHS released $401.5 million in remaining FY2025 LIHEAP funds.
• As of May 1, 2025, states were able to draw down on their grants.
• The pattern — congressional pressure followed by eventual release — is now repeating with FY2026 funds.

The bigger threat to LIHEAP

Beyond the immediate funding delay, there is a larger fight underway. The Trump administration has proposed eliminating LIHEAP entirely in its fiscal year 2026 budget, and federal LIHEAP staff who were fired in April 2025 have not been rehired, leaving states to run their programs with no federal training or guidance.

The White House has described LIHEAP as "unnecessary," arguing that the administration's energy policies will lower prices enough to make the program redundant. Budget experts and program administrators have pushed back sharply, noting that Congress controls appropriations and has funded LIHEAP at no less than $3 billion annually since 2009.

For now, Congress has continued to appropriate money for the program. Whether HHS releases those funds promptly — and how the program is administered without dedicated federal staff — remains an open question.

What should you do?

If you receive LIHEAP assistance or think you might qualify, here are practical steps you can take right now.

Contact your state or local LIHEAP agency directly. States received the bulk of FY2026 funds in late November 2025 and may already be distributing benefits in your area. To find your state's program, visit the U.S. Department of Energy LIHEAP State Map of Contacts at energy.gov.

Check whether you are eligible. LIHEAP applications are currently open for all income-eligible households, with eligibility based on income, family size, and the availability of resources. Seniors and those receiving Social Security Disability or SSI benefits are encouraged to apply as early as possible, but applications are open to everyone through spring 2026 or until funding is exhausted.

Also contact your utility provider. Many electric and gas companies offer their own low-income assistance programs, budget billing options, or hardship funds that can help bridge the gap while you wait on federal or state aid.

Keep your paperwork organized. When funds are released and your state agency begins processing applications, having your utility bills, income documentation, and household information ready will help you get assistance faster.

The bottom line

Nearly six million households depend on LIHEAP to avoid making impossible choices between paying energy bills and covering food, medical care, or other essentials. The $400 million still sitting with HHS is congressionally approved money that states say they are ready to deploy immediately.

With 40 senators pushing for release and a pattern from 2025 showing that congressional pressure has moved the administration before, there is reason to expect the funds will eventually reach families.

But with no dedicated federal staff and an administration that has proposed ending the program altogether, the situation bears close watching. BenefitKarma will continue tracking this as it develops.