{ "id": "RL33275", "type": "CRS Report", "typeId": "REPORTS", "number": "RL33275", "active": true, "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department", "versions": [ { "source": "EveryCRSReport.com", "id": 597829, "date": "2019-05-02", "retrieved": "2019-12-20T19:18:50.503686", "title": "The LIHEAP Formula", "summary": "The Low Income Home Energy Assistance Program (LIHEAP) provides funds to states, the District of Columbia, U.S. territories and commonwealths, and Indian tribal organizations (collectively referred to as grantees) primarily to help low-income households pay home energy expenses. The LIHEAP statute provides for two types of funding: regular funds (sometimes referred to as block grant funds) and emergency contingency funds. Regular funds are allocated to grantees based on a formula, while emergency contingency funds may be released to one or more grantees at the discretion of the Secretary of the Department of Health and Human Services (HHS) based on emergency need. This report focuses on the way in which regular funds are distributed.\nRegular LIHEAP funds are allocated to the states according to a formula that has a long and complicated history. (Tribes receive a share of state funding, while a percentage of regular funds is set aside for territories.) Prior to enactment of LIHEAP, in 1981, a series of predecessor energy assistance programs focused on the heating needs of cold weather states. This focus was in part the result of high heating oil prices throughout the 1970s. When LIHEAP was enacted, it adopted the formula of its immediate predecessor program, the Low Income Energy Assistance Program (LIEAP). Funds under LIEAP were distributed according to a multi-step formula that was more favorable to colder-weather states. The LIHEAP statute specified that states would continue to receive the same percentage of regular funds that they did under the LIEAP formula. This is sometimes referred to as the \u201cold\u201d LIHEAP formula.\nAfter several years, when Congress reauthorized LIHEAP in 1984 it changed the program\u2019s formula by requiring the use of more recent population and energy data (data were not updated under the \u201cold\u201d formula) and reducing the emphasis on heating needs. The effect of these changes meant that, in general, some funding would be shifted from colder-weather states to warmer-weather states. (Using FY2019 formula data, the figure below shows which states receive a greater share of funds under the \u201cnew\u201d and \u201cold\u201d formulas.) To prevent a dramatic shift of funds, Congress added two \u201chold-harmless\u201d provisions to the formula. The percentage of funds that states receive under the formula enacted in 1984 is sometimes referred to as the \u201cnew\u201d formula.\nFavorability of the \u201cNew\u201d and \u201cOld\u201d LIHEAP Formulas\n by State (FY2019)\n/\nSource: Based on Department of Health and Human Services\nData\nNew formula data is used to calculate state allotments when appropriations for LIHEAP regular funds exceed approximately $2 billion. In the years following the enactment of the \u201cnew\u201d LIHEAP formula, appropriations did not reach this level, so until the mid-2000s funds were largely distributed according to the \u201cold\u201d formula percentages. However, in FY2006, and in FY2009 through FY2019, regular fund appropriations have ranged from $2.5 billion to $4.5 billion, and the \u201cnew\u201d formula has been incorporated into the way in which funds are distributed to the states. Notably, however, since FY2009 Congress has limited the operation of the \u201cnew\u201d formula by requiring that the majority of regular funds be distributed using \u201cold\u201d formula percentages. For distributions to the states from FY2009-FY2019, see Table C-1.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/RL33275", "sha1": "36f70225d7680dcd47d92cd53d815272614aad39", "filename": "files/20190502_RL33275_36f70225d7680dcd47d92cd53d815272614aad39.html", "images": { "/products/Getimages/?directory=RL/html/RL33275_files&id=/1.png": "files/20190502_RL33275_images_a0b732fe27f70a1017fa3ad8ab2bf771852f4661.png", "/products/Getimages/?directory=RL/html/RL33275_files&id=/0.png": "files/20190502_RL33275_images_07f7ba352ab50a71f1e96076d00a50a4c6898c4c.png" } }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/RL33275", "sha1": "7bc7f61d3a51d749a4320df508c5851e40b6dd13", "filename": "files/20190502_RL33275_7bc7f61d3a51d749a4320df508c5851e40b6dd13.pdf", "images": {} } ], "topics": [] }, { "source": "EveryCRSReport.com", "id": 459078, "date": "2017-02-17", "retrieved": "2017-03-01T17:39:01.275407", "title": "The LIHEAP Formula", "summary": "The Low Income Home Energy Assistance Program (LIHEAP) provides funds to states, the District of Columbia, U.S. territories and commonwealths, and Indian tribal organizations (collectively referred to as grantees) primarily to help low-income households pay home energy expenses. The LIHEAP statute provides for two types of funding: regular funds (sometimes referred to as block grant funds) and emergency contingency funds. Regular funds are allocated to grantees based on a formula, while emergency contingency funds may be released to one or more grantees at the discretion of the Secretary of the Department of Health and Human Services based on emergency need. This report focuses on the way in which regular funds are distributed.\nRegular LIHEAP funds are allocated to the states according to a formula that has a long and complicated history. (Tribes and territories receive funds through set asides.) In 1980, Congress created the predecessor program to LIHEAP, the Low Income Energy Assistance Program (LIEAP), as part of the Crude Oil Windfall Profits Tax Act (P.L. 96-223). Because Congress was particularly concerned with the high costs of heating, funds under LIEAP were distributed according to a multi-step formula that benefitted cold-weather states. In 1981, Congress enacted LIHEAP as part of the Omnibus Budget Reconciliation Act (P.L. 97-35), replacing LIEAP. However, the LIHEAP statute specified that states would continue to receive the same percentage of regular funds that they did under the LIEAP formula (this is sometimes referred to as the \u201cold\u201d LIHEAP formula).\nWhen Congress reauthorized LIHEAP in 1984 as part of the Human Services Reauthorization Act (P.L. 98-558), it changed the program\u2019s formula by requiring the use of more recent population and energy data and requiring that HHS consider both heating and cooling costs of low-income households (a change from what had largely been a focus on the need for heating assistance). The effect of these changes meant that, in general, some funding would be shifted from cold-weather states to warm-weather states. To prevent a dramatic shift of funds, Congress added two \u201chold-harmless\u201d provisions to the formula. The percentage of funds that states receive under the formula enacted in 1984 is sometimes referred to as the \u201cnew\u201d formula.\nThe result of these provisions is a current law, three-tiered formula, the application of which depends on the amount of regular funds that Congress appropriates. When appropriations are at or below the equivalent of a hypothetical FY1984 appropriation of $1.975 billion, states receive the \u201cold\u201d formula percentage of funds. If appropriations exceed this level, then funds are allocated according to the \u201cnew\u201d formula percentage of funds, with certain states held harmless at the level of funds they would have received at an appropriation of $1.975 billion in FY1984. Finally, when appropriations are at or above $2.25 billion, there is a second hold-harmless provision in place, a hold-harmless rate that ensures that certain states receive a set percentage of funds. \nFor many years after the enactment of the \u201cnew\u201d LIHEAP formula, appropriations did not exceed the equivalent of an FY1984 appropriation of $1.975 billion, so funds were distributed according to the \u201cold\u201d formula percentages. However, in FY2006, and in FY2009 through FY2016, regular fund appropriations have ranged from $2.5 billion to $4.5 billion, and the \u201cnew\u201d formula has been incorporated into the way in which funds are distributed to the states. For allocations to the states, see Table C-1.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/RL33275", "sha1": "a1f63c560082221f9efcbb7a380b7051c53675d4", "filename": "files/20170217_RL33275_a1f63c560082221f9efcbb7a380b7051c53675d4.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/RL33275", "sha1": "095b9b106d402914cea8c347e12584acad0b575d", "filename": "files/20170217_RL33275_095b9b106d402914cea8c347e12584acad0b575d.pdf", "images": null } ], "topics": [] }, { "source": "EveryCRSReport.com", "id": 450065, "date": "2016-02-23", "retrieved": "2016-04-06T17:04:30.911950", "title": "The LIHEAP Formula", "summary": "The Low Income Home Energy Assistance Program (LIHEAP) provides funds to states, the District of Columbia, U.S. territories and commonwealths, and Indian tribal organizations (collectively referred to as grantees) primarily to help low-income households pay home energy expenses. The LIHEAP statute provides for two types of funding: regular funds (sometimes referred to as block grant funds) and emergency contingency funds. Regular funds are allocated to grantees based on a formula, while emergency contingency funds may be released to one or more grantees at the discretion of the Secretary of the Department of Health and Human Services based on emergency need. This report focuses on the way in which regular funds are distributed.\nRegular LIHEAP funds are allocated to the states according to a formula that has a long and complicated history. (Tribes and territories receive funds through set asides.) In 1980, Congress created the predecessor program to LIHEAP, the Low Income Energy Assistance Program (LIEAP), as part of the Crude Oil Windfall Profits Tax Act (P.L. 96-223). Because Congress was particularly concerned with the high costs of heating, funds under LIEAP were distributed according to a multi-step formula that benefitted cold-weather states. In 1981, Congress enacted LIHEAP as part of the Omnibus Budget Reconciliation Act (P.L. 97-35), replacing LIEAP. However, the LIHEAP statute specified that states would continue to receive the same percentage of regular funds that they did under the LIEAP formula (this is sometimes referred to as the \u201cold\u201d LIHEAP formula).\nWhen Congress reauthorized LIHEAP in 1984 as part of the Human Services Reauthorization Act (P.L. 98-558), it changed the program\u2019s formula by requiring the use of more recent population and energy data and requiring that HHS consider both heating and cooling costs of low-income households (a change from what had largely been a focus on the need for heating assistance). The effect of these changes meant that, in general, some funding would be shifted from cold-weather states to warm-weather states. To prevent a dramatic shift of funds, Congress added two \u201chold-harmless\u201d provisions to the formula. The percentage of funds that states receive under the formula enacted in 1984 is sometimes referred to as the \u201cnew\u201d formula.\nThe result of these provisions is a current law, three-tiered formula, the application of which depends on the amount of regular funds that Congress appropriates. When appropriations are at or below the equivalent of a hypothetical FY1984 appropriation of $1.975 billion, states receive the \u201cold\u201d formula percentage of funds. If appropriations exceed this level, then funds are allocated according to the \u201cnew\u201d formula percentage of funds, with certain states held harmless at the level of funds they would have received at an appropriation of $1.975 billion in FY1984. Finally, when appropriations are at or above $2.25 billion, there is a second hold-harmless provision in place, a hold-harmless rate that ensures that certain states receive a set percentage of funds. \nFor many years after the enactment of the \u201cnew\u201d LIHEAP formula, appropriations did not exceed the equivalent of an FY1984 appropriation of $1.975 billion, so funds were distributed according to the \u201cold\u201d formula percentages. However, in FY2006, and in FY2009 through FY2016, regular fund appropriations have ranged from $2.5 billion to $4.5 billion, and the \u201cnew\u201d formula has been incorporated into the way in which funds are distributed to the states. For allocations to the states, see Table C-1.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/RL33275", "sha1": "212a58d673be8a45842ebac6334b0a209aabd47b", "filename": "files/20160223_RL33275_212a58d673be8a45842ebac6334b0a209aabd47b.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/RL33275", "sha1": "87dbc687582a1456f2ebd3e04910b37b88739bff", "filename": "files/20160223_RL33275_87dbc687582a1456f2ebd3e04910b37b88739bff.pdf", "images": null } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc806535/", "id": "RL33275_2015Jun26", "date": "2015-06-26", "retrieved": "2016-03-19T13:57:26", "title": "The LIHEAP Formula", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20150626_RL33275_f472cbe318848959b5da413e403d4c5a312f7eed.pdf" }, { "format": "HTML", "filename": "files/20150626_RL33275_f472cbe318848959b5da413e403d4c5a312f7eed.html" } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc306456/", "id": "RL33275_2014May21", "date": "2014-05-21", "retrieved": "2014-07-08T21:53:44", "title": "The LIHEAP Formula", "summary": "This report discusses two types of formulas used to allocate funding to the Low Income Home Energy Assistance Program (LIHEAP) through regular and contingency funding.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20140521_RL33275_cf8c764fd05b3f8b109fc7ce464e7a156379ef3d.pdf" }, { "format": "HTML", "filename": "files/20140521_RL33275_cf8c764fd05b3f8b109fc7ce464e7a156379ef3d.html" } ], "topics": [ { "source": "LIV", "id": "Welfare", "name": "Welfare" }, { "source": "LIV", "id": "Energy assistance for the poor", "name": "Energy assistance for the poor" }, { "source": "LIV", "id": "Low-income housing", "name": "Low-income housing" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc807463/", "id": "RL33275_2010Sep08", "date": "2010-09-08", "retrieved": "2016-03-19T13:57:26", "title": "The LIHEAP Formula: Legislative History and Current Law", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20100908_RL33275_a4fe00b9aa152af0736abdf12609a9394e4fbe67.pdf" }, { "format": "HTML", "filename": "files/20100908_RL33275_a4fe00b9aa152af0736abdf12609a9394e4fbe67.html" } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc94021/", "id": "RL33275_2010Jul06", "date": "2010-07-06", "retrieved": "2012-07-24T12:39:36", "title": "The LIHEAP Formula: Legislative History and Current Law", "summary": "This report discusses two types of formulas used to allocate funding to the Low Income Home Energy Assistance Program (LIHEAP). The two formulas are used in regards to two types of funding: regular and contingency.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20100706_RL33275_ebef37c7bcdba5a07bc129a3e9bfd46fedd578ca.pdf" }, { "format": "HTML", "filename": "files/20100706_RL33275_ebef37c7bcdba5a07bc129a3e9bfd46fedd578ca.html" } ], "topics": [ { "source": "LIV", "id": "Welfare", "name": "Welfare" }, { "source": "LIV", "id": "Energy assistance for the poor", "name": "Energy assistance for the poor" }, { "source": "LIV", "id": "Low-income housing", "name": "Low-income housing" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc813048/", "id": "RL33275_2009May11", "date": "2009-05-11", "retrieved": "2016-03-19T13:57:26", "title": "The LIHEAP Formula: Legislative History and Current Law", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20090511_RL33275_31ae05549c2d76680aec10d9ecd5b58fc091b5c2.pdf" }, { "format": "HTML", "filename": "files/20090511_RL33275_31ae05549c2d76680aec10d9ecd5b58fc091b5c2.html" } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc815565/", "id": "RL33275_2008Nov19", "date": "2008-11-19", "retrieved": "2016-03-19T13:57:26", "title": "The LIHEAP Formula: Legislative History and Current Law", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20081119_RL33275_392b4fa1d5e03281cb645e690f6cabcdb1b54eec.pdf" }, { "format": "HTML", "filename": "files/20081119_RL33275_392b4fa1d5e03281cb645e690f6cabcdb1b54eec.html" } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc822546/", "id": "RL33275_2007Aug30", "date": "2007-08-30", "retrieved": "2016-03-19T13:57:26", "title": "Low-Income Home Energy Assistance Program (LIHEAP) Allocation Rates: Legislative History and Current Law", "summary": "This report discusses the legislative history and current law regarding the Low-Income Home Energy Assistance Program (LIHEAP), which provides funds to states so that they may help low-income households pay home energy expenses.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20070830_RL33275_a0fd03c2fcba9090a5fbec1a52bd0639511b0e78.pdf" }, { "format": "HTML", "filename": "files/20070830_RL33275_a0fd03c2fcba9090a5fbec1a52bd0639511b0e78.html" } ], "topics": [ { "source": "LIV", "id": "Low-income housing", "name": "Low-income housing" }, { "source": "LIV", "id": "Federal aid to housing", "name": "Federal aid to housing" }, { "source": "LIV", "id": "Housing", "name": "Housing" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc817275/", "id": "RL33275_2006Jul18", "date": "2006-07-18", "retrieved": "2016-03-19T13:57:26", "title": "Low-Income Home Energy Assistance Program (LIHEAP) Allocation Rates: Legislative History and Current Law", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20060718_RL33275_2440be2e6d7fa0f1499e35ea6ec86f1b9a3cd94b.pdf" }, { "format": "HTML", "filename": "files/20060718_RL33275_2440be2e6d7fa0f1499e35ea6ec86f1b9a3cd94b.html" } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc817118/", "id": "RL33275_2006Feb10", "date": "2006-02-10", "retrieved": "2016-03-19T13:57:26", "title": "Low-Income Home Energy Assistance Program (LIHEAP) Allocation Rates: Legislative History and Current Law", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20060210_RL33275_4d25d27f14f50c9d0a08d161a59aca37fb53dbae.pdf" }, { "format": "HTML", "filename": "files/20060210_RL33275_4d25d27f14f50c9d0a08d161a59aca37fb53dbae.html" } ], "topics": [] } ], "topics": [ "Appropriations", "Domestic Social Policy", "Energy Policy" ] }