Order Code RS20893
April 17, 2001
CRS Report for Congress
Received through the CRS Web
The Low-Income Home Energy
Assistance Program: How are State
Allotments Determined?
Craig W. Abbey
Analyst in Social Legislation
Domestic Social Policy Division
Summary
The Low-Income Home Energy Assistance Program (LIHEAP) is a block grant
program under which the federal government provides states annual grants to operate
multi-component home energy assistance programs for needy households. The LIHEAP
statute authorizes two types of grants, regular and emergency. When appropriations are
$1.975 billion or less, states receive the same share of funds they received in FY1984.
When regular appropriations for a fiscal year exceed $1.975 billion, state allocations are
based on estimated home heating and cooling expenditures by low-income households
(subject to a minimum). Emergency funds are released and distributed at the discretion
of the President and the Secretary of Health and Human Services (HHS) in response to
natural disasters or other emergencies. This report will be updated as necessary.
What is the Low-Income Home Energy Assistance Program? The Low-
Income Home Energy Assistance Program is a
block grant program under which the
federal government gives states, the District of Columbia, U.S. territories and
commonwealths, and Indian tribal organizations (all referred to as grantees) annual grants
to operate multi-component home energy assistance programs for needy households.1
Originally established in 1981 by Title XXVI of P.L. 97-35, the program has been
reauthorized and amended several times, most recently in 1998, when P.L. 105-185
reauthorized LIHEAP through FY2004.
What Type of Grants Are Authorized under LIHEAP and How Are These
Grants Determined? The LIHEAP statute provides for two types of program funding:
regular block grant and
emergency. Regular funds are allotted to states according to
methods prescribed in the LIHEAP statute as amended by the Human Services
Reauthorization Act (HRSA) of 1984 (P.L. 98-558). The amount of each state’s regular
1 For additional information on LIHEAP, see CRS Report 94-211,
The Low-Income Home Energy
Assistance Program by Melinda Gish.
Congressional Research Service ˜ The Library of Congress
CRS-2
allotment is determined after enactment of appropriation levels. Emergency funds, on the
other hand, are released and allotted at the discretion of the President and the Secretary
of HHS and can be done at any point in the fiscal year.2
How Are the Allotments of Regular LIHEAP Funding Determined? The
method used to determine each state’s allotment of regular LIHEAP funds depends on the
size of the appropriations for that fiscal year.
If Regular Appropriations Are $1.975 Billion or less .... For fiscal years in
which the appropriation for regular LIHEAP funds is $1.975 billion or less, as has been
the case each fiscal year since FY1987, each state receives the same percentage of funds
that it received in FY1984.3 The LIHEAP formula in FY1984 distributed funds by giving
states the same share of funds that they received in FY1981 under the predecessor
program to LIHEAP, the Low-Income Energy Assistance Program(LIEAP). Funds for
LIEAP were distributed based on a state’s share of home heating expenditures by low-
income households using data collected from 1976 to 1980. The share of funds that each
state receives when the regular appropriation is $1.975 billion or less can be found in
Table 1. State allotments for FY2001 made from regular appropriations, which were
based on the FY1984 allotment percentages, can be found in
Table 2.
If Regular Appropriations Are More than $1.975 Billion .... For fiscal years
in which the appropriation for regular LIHEAP funds is more than $1.975 billion, funds
are distributed, based on a state’s share of home heating and cooling expenditures by low
income households.4 Because the HRSA amendments to LIHEAP modified the basis for
distributing funds by adding cooling expenditures and changing the method of estimating
energy consumption by low-income households, Congress sought to ensure that no state
would lose too great a share of its anticipated funding, by including a statutory floor or
minimum grant amount. No state can receive less than the amount they would have
received in FY1984 had appropriations been $1.975 billion. The statutory floors for each
state can be found in
Table 1.
2 Depending on how Congress appropriates these funds, emergency funding may not need to be
released and distributed in the fiscal year for which it was appropriated. As of April 17, 2001,
there are no remaining emergency funds.
3 FY1985 and FY1986 are the only 2 fiscal years for which appropriations have been greater than
$1.975 billion since the 1984 HRSA modification of the LIHEAP formula.
4 Section 2604(a)(2) of the LIHEAP statute, as amended by HRSA, specifies that a state’s
allotment percentage of LIHEAP funds in FY1985 and thereafter is "the percentage which
expenditures for home energy by low-income households in that state bears to such expenditures
in all states ..." In practice, this means both heating and cooling expenditures by low-income
households. To estimate expenditures for each state, the formula multiplies fuel prices by the
estimated amount of energy consumed by low-income households in each state. Energy price data
(by fuel type and by state) come from projections made by the Energy Information Administration
(EIA) in its State Energy Price and Expenditure Report (SEPER). Energy consumption (heating
and cooling) by low-income households is estimated using data on household heating sources,
weather data, residential energy consumption data and data on energy consumption by low-income
households specifically. The decennial census long form supplies state-by-state information on the
fuel types used for heat. Heating and cooling degree day weather data, which correlates to energy
need, comes from the National Oceanic and Atmospheric Administration. The Energy Information
Administration supplies residential energy consumption data for various fuel types.
CRS-3
The method for ensuring that each state receives its minimum depends on whether
regular fund appropriations exceed $2.25 billion. Generally, if by formula, a state’s
allotment would fall below its guaranteed minimum, its allotment is raised up to that
amount by proportionately reducing the allotments of the states that, by formula, would
receive allotments surpassing their floors, or minimums. When the LIHEAP regular
appropriations is less than $2.25 billion, all states above their statutory floor have their
allotments proportionately reduced. However, the statute states that when appropriations
are greater than or equal to $2.25 billion, no state whose allotment percentage is less than
1% can have its allotment percentage reduced below the allotment percentage it would
have received from a total appropriation of $2.14 billion. In effect, the money needed to
increase the allotments to states that fall below their statutory floor comes from states that
receive more than 1% of available funds when appropriations exceed $2.25 billion.
Table 1. LIHEAP: Allotment Percentages and Statutory Floors
Appropriations less than or
Appropriations greater
Appropriations greater
equal to $1.975 billion
than $1.975 billion
than $1.975 billion
Allotment percentages
Minimum allotments
State
Allotment percentagesa
(subject to minimums)b
($ in thousands)c
Alabama
0.86
1.68
16,943
Alaska
0.55
0.36
10,815
Arizona
0.42
1.25
8,194
Arkansas
0.66
1.21
12,928
California
4.61
6.00
90,895
Colorado
1.61
1.15
31,692
Connecticut
2.10
1.40
41,344
Delaware
0.28
0.37
5,488
District of Columbia
0.33
0.27
6,421
Florida
1.36
4.16
26,809
Georgia
1.08
2.68
21,197
Hawaii
0.11
0.12
2,135
Idaho
0.63
0.28
12,362
Illinois
5.81
5.30
114,432
Indiana
2.63
2.21
51,812
Iowa
1.86
1.22
36,720
Kansas
0.86
1.07
16,863
Kentucky
1.37
1.73
26,963
Louisiana
0.88
1.79
17,322
Maine
1.36
0.55
26,784
Maryland
1.61
2.26
31,656
Massachusetts
4.20
2.91
82,701
Michigan
5.51
4.82
108,643
Minnesota
3.97
1.68
78,271
Mississippi
0.74
1.87
14,526
Missouri
2.32
2.41
45,709
Montana
0.74
0.35
14,500
Nebraska
0.92
0.55
18,159
Nevada
0.20
0.51
3,848
New Hampshire
0.79
0.45
15,654
New Jersey
3.90
3.28
76,775
New Mexico
0.52
0.54
10,258
New York
12.72
8.68
250,683
North Carolina
1.90
3.14
37,359
North Dakota
0.80
0.21
15,751
Ohio
5.14
4.86
101,232
Oklahoma
0.79
1.31
15,574
Oregon
1.25
0.95
24,563
CRS-4
Appropriations less than or
Appropriations greater
Appropriations greater
equal to $1.975 billion
than $1.975 billion
than $1.975 billion
Allotment percentages
Minimum allotments
State
Allotment percentagesa
(subject to minimums)b
($ in thousands)c
Pennsylvania
6.84
5.15
134,653
Rhode Island
0.69
0.47
13,613
South Carolina
0.68
1.44
13,456
South Dakota
0.65
0.29
12,793
Tennessee
1.39
2.08
27,313
Texas
2.26
6.60
44,601
Utah
0.75
0.54
14,727
Vermont
0.60
0.23
11,733
Virginia
1.96
3.05
38,561
Washington
2.05
1.50
40,403
West Virginia
0.91
0.96
17,843
Wisconsin
3.58
1.93
70,456
Wyoming
0.30
0.18
5,897
Total
100%
100%
$1,970,032
Source: Table prepared by the Congressional Research Service based on data from the Department of
Health and Human Services.
a These are the allotment percentages from FY1984. They do not change over time.
b These allotment percentages change year to year as fuel price and low-income household data is updated.
c These amounts reflect the minimum allotment each state can receive under LIHEAP statute, if
appropriation of regular funds exceeds $1.975 billion. The amounts reflect the amount they
would have
received in FY1984 had appropriations been $1.975 billion. From the $1.975 billion, $2.296 million
would have been used for administration and $2.67 million set-aside for territorial programs. From
FY1982 through FY1987, the LIHEAP appropriation included federal administration costs. State
allotments are then calculated by multiplying the remaining $1.97 billion by the FY1984 allotment
percentages. Therefore, the sum of all state floors does not equal $1.975 billion.
Table 2. LIHEAP: FY2001 Regular Fund State Allotments
($ in thousand)
FY2001
FY2001
FY2001
State
allotment
State
allotment State
allotment
Alabama
11,786
Kentucky
18,755 North Dakota
10,957
Alaska
7,523
Louisiana
12,049 Ohio
70,417
Arizona
5,700
Maine
18,631 Oklahoma
10,833
Arkansas
8,993
Maryland
22,020 Oregon
17,086
California
63,226
Massachusetts
57,526 Pennsylvania
93,664
Colorado
22,045
Michigan
75,572 Rhode Island
9,469
Connecticut
28,758
Minnesota
54,445 South Carolina
9,360
Delaware
3,817
Mississippi
10,104 South Dakota
8,899
District of Columbia
4,466
Missouri
31,795 Tennessee
18,998
Florida
18,648
Montana
10,086 Texas
31,024
Georgia
14,744
Nebraska
12,631 Utah
10,244
Hawaii
1,485
Nevada
2,677 Vermont
8,161
Idaho
8,599
New Hampshire
10,889 Virginia
26,823
Illinois
79,598
New Jersey
53,404 Washington
28,104
Indiana
36,040
New Mexico
7,136 West Virginia
12,412
Iowa
25,542
New York
174,373 Wisconsin
49,008
Kansas
11,730
North Carolina
25,987 Wyoming
4,102
Source: Table prepared by the Congressional Research Service based on data from the Department of
Health and Human Services.
CRS-5
What Are the Trends in Requested, Authorized and Appropriated
LIHEAP Funding Levels? Table 3 shows LIHEAP administration requests,
authorization levels, regular appropriations and emergency appropriations for FY1982-
FY2001. For every fiscal year since FY1988, administration requests have been less than
$1.975 billion. Since FY1987, Congressional appropriations have not surpassed $1.975
billion either. Therefore, states are allotted the same percentage of total funds that they
received in FY1984.
Table 3. LIHEAP: Administration Requests, Authorizations and
Regular Appropriations and Emergency Appropriations, FY1982-
FY2001
($ in thousands)
Fiscal year
Administration
Authorization
Regular
Emergency
requesta
level
appropriations
appropriationsb
1982
1,400,000
1,875,000
1,875,000
-
1983
1,300,000
1,875,000
1,975,000
-
1984
1,300,000
1,875,000
2,075,000
-
1985
1,875,000
2,140,000
2,100,000
-
1986
2,097,765
2,275,000
2,010,000
-
1987
2,097,642
2,050,000
1,825,000
-
1988
1,237,000
2,132,000
1,531,840
-
1989
1,187,000
2,218,000
1,383,200
-
1990
1,100,000
2,307,000
1,442,950
50,000
1991
1,050,000
2,150,000
1,610,000
195,000
1992
1,025,000
2,230,000
1,500,000
-
1993
1,065,000
ssan*
1,346,030
-
1994
1,507,408
ssan*
1,437,408
298,000
1995
1,475,000
2,000,000
1,319,000
100,000
1996
1,319,204
2,000,000
900,000
180,000
1997
1,000,000
2,000,000
1,000,000
215,000
1998
1,000,000
2,000,000
1,000,000
160,000
1999
1,300,000
2,000,000
1,100,000
180,000
2000
1,400,000
ssan*
1,100,000
744,000
2001
1,400,000
ssan*
1,400,000
456,000
2002
1,400,000
2,000,000
- c
-d
Source: Table prepared by the Congressional Research Service based on data from the Department of
Health and Human Services.
* Such sums as necessary.
a The administration requests listed here are for regular appropriations only.
b Depending on how Congress appropriated emergency funds, they may not have to be released and
distributed in the fiscal year under which they are appropriated. Emergency fund appropriations do not
alter the method for determining state allotments.
c As of April 17, 2001, regular appropriations for FY2002 have not been made; however the
Administration requested $1.4 billion in its budget.
d As of April 17, 2001, emergency appropriations for FY2002 have not been made; however the
Administration requested $300 million in its budget.
CRS-6
For What Purposes Does the LIHEAP Statute Authorize the Release of
Emergency Funds? Emergency funds are authorized under Section 2602(e) of the
LIHEAP statute. Specifically, the statute authorizes these funds for additional home energy
assistance needs of one or more states arising from a natural disaster or other emergency.
Section 2603(1) further defines the term emergency as: a natural disaster; a significant price
increase; a significant supply shortage or disruption; a significant increase in participation
in the Food Stamps program, Supplemental Security Insurance (SSI) program, or
Temporary Assistance to Needy Families (TANF) program; a significant increase in
unemployment or layoffs; a significant increase in the reported number of home energy
disconnections; or any other event meeting such criteria as the Secretary determines
appropriate.
Under Section 2604(e), the Secretary is authorized to allot emergency funds to one
or more states. When making such allotments, the Secretary is required to take into
account the extent to which a state was affected by natural disaster or other emergency,
the availability of other resources to the state, and any other factors the Secretary deems
appropriate. No later than 30 days after making an allotment and before releasing
emergency funds, the Secretary is required to notify Congress that the allotment is being
made. As of April 9, 2001, all emergency funds have been released and distributed.
To What Types of Emergencies Have Recent LIHEAP Emergency Fund
Releases Responded? In fiscal years 1999-2001, LIHEAP emergency funds were
released in response to a diverse range of natural disasters or other emergencies. On
December 28, 2000, President Clinton released and distributed $300 million in emergency
LIHEAP funds in response to substantial increases in home heating fuel prices. On August
23, 2000, $2.6 million was released and distributed to California in response to substantially
higher electricity prices. On July 25, 2000, $41.75 million was released to nine states.
Most of this funding was directed to southern states suffering extreme heat waves.
However, Alaska also received money to assist families in native Alaskan villages with
buying heating oil for the upcoming winter. For the fourth year in a row a poor salmon run
resulted in a lack of cash during summer months when lower-priced heating oil is
purchased. During FY2000, over $744 million were released to states in response to
severe winter weather and increasing home heating fuel prices. In July 1999, $100 million
in emergency funds were released to 17 states experiencing extreme heat waves. In
September 1999, $20.3 million was released to North Carolina for flood relief.