Low Income Home Energy Assistance Program (LIHEAP): Estimated Allocations

The Low Income Home Energy Assistance Program (LIHEAP) is a block grant program under which the federal government gives annual grants to states, the District of Columbia, U.S. territories and commonwealths, and Indian tribal organizations to operate multi-component home energy assistance programs for needy households. This report contains two tables that show estimated LIHEAP allocations to the states. Table 1 shows state allocations at various levels: (1) the amount appropriated for FY2006, (2) the amount appropriated for FY2007, (3) the amount appropriated in FY2008, and (4) estimated state allocations based on the amount requested by the President for FY2009. Table 2 shows estimated state allocations at other hypothetical appropriations increments. For detailed information on how the LIHEAP formula allocates funds to the states, see CRS Report RL33275, The LIHEAP Formula: Legislative History and Current Law, by Libby Perl. This report will be updated when proposed funding levels change.

Low Income Home Energy Assistance Program (LIHEAP): Estimated Allocations

June 26, 2008 (RS21605)

Summary

The Low Income Home Energy Assistance Program (LIHEAP) is a block grant program under which the federal government gives annual grants to states, the District of Columbia, U.S. territories and commonwealths, and Indian tribal organizations to operate multi-component home energy assistance programs for needy households. This report contains two tables that show estimated LIHEAP allocations to the states. Table 1 shows state allocations at various levels: (1) the amount appropriated for FY2006, (2) the amount appropriated for FY2007, (3) the amount appropriated in FY2008, and (4) estimated state allocations based on the amount requested by the President for FY2009. Table 2 shows estimated state allocations at other hypothetical appropriations increments. For detailed information on how the LIHEAP formula allocates funds to the states, see CRS Report RL33275, The LIHEAP Formula: Legislative History and Current Law, by [author name scrubbed]. This report will be updated when proposed funding levels change.


Low Income Home Energy Assistance Program (LIHEAP): Estimated Allocations

Low Income Home Energy Assistance Program

The Low Income Home Energy Assistance Program (LIHEAP) is a block grant program under which the federal government gives annual grants to states, the District of Columbia, U.S. territories and commonwealths, and Indian tribal organizations to operate multi-component home energy assistance programs for needy households.1 Established in 1981 by Title XXVI of the Omnibus Budget Reconciliation Act (P.L. 97-35), LIHEAP has been reauthorized and amended several times, most recently in 2005, when the Energy Policy Act (P.L. 109-58) reauthorized annual regular LIHEAP funds at $5.1 billion per year from FY2005 to FY2007. The total LIHEAP appropriation in the FY2008 Consolidated Appropriations Act (P.L. 110-161) was approximately $2.57 billion. In FY2007 Congress appropriated $2.16 billion for the program (P.L. 110-5), and in FY2006, $3.161 billion was appropriated for LIHEAP (P.L. 109-149 and P.L. 109-204), the largest amount ever appropriated for the program.

The LIHEAP statute provides for two types of program funding: regular funds and contingency funds. This report focuses on the distribution of regular funds, sometimes referred to as block grant funds, which are allotted to states according to methods prescribed by the LIHEAP statute.2 The allotment method may change depending on the amount of funds appropriated by Congress. In both FY2007 and FY2008, $1.98 billion was allocated to regular funds, and in FY2006, $2.48 billion of the LIHEAP appropriation was distributed as regular funds. The second type of LIHEAP funding, called contingency funds, may be released and allotted to one or more states at the discretion of the President and the Secretary of Health and Human Services (HHS). The contingency funds may be released at any point in the fiscal year to meet additional home energy assistance needs created by a natural disaster or other emergency.3 Of the total appropriated for LIHEAP in FY2008, approximately $590 million was for contingency funds.

LIHEAP Block Grant Funding Levels

In the FY2008 Consolidated Appropriations Act (P.L. 110-161), Congress appropriated $1.98 billion for the LIHEAP regular fund. P.L. 110-161 contained an across-the-board rescission of 1.747% that reduced the stated amounts appropriated for most Departments of Labor, Health and Human Services, and Education programs.4 The $1.98 billion appropriation for regular funds is the amount available after this rescission. The first distribution to the states of the regular funds appropriated in P.L. 110-161 occurred in December 2007. Then, on June 26, 2008, HHS announced that it would distribute funds that were thought to have been allocated to leveraging incentive and REACH grants in the FY2008 Appropriations Act as part of the regular fund formula grants. Since the early 1990s, leveraging incentive and REACH grants have been made to states and tribes on the basis of their ability to obtain non-LIHEAP resources for energy assistance (leveraging incentive grants) and for increasing energy efficiency of low-income households (REACH grants). In recent years, Congress has allocated around $27 million for these two funds. However, in FY2008, P.L. 110-161 did not appropriate funds for leveraging incentive and REACH grants. When HHS discovered that language to appropriate the funds was missing from the law, it released the $26.7 million that would otherwise have been distributed as leveraging incentive and REACH grants as part of the LIHEAP formula distribution. The addition of nearly $27 million to the formula grants caused the funds to be released under the "new" LIHEAP formula. For more information about how the LIHEAP formula distributes funds, see CRS Report RL33275, The LIHEAP Formula: Legislative History and Current Law, by [author name scrubbed].

Column (c) of Table 1 shows the amount of funds that were initially allocated to the states in FY2008 before HHS discovered that the leveraging incentive grants had not been appropriated in P.L. 110-161. Column (d) shows the total distributed to the states on June 26, 2008, which includes the $26.7 million in leveraging incentive grants. Column (b) of Table 1 shows the amounts allocated to the states in FY2007. For FY2009, the President has requested a total of $2 billion for LIHEAP; of this amount, $1.7 billion would be allocated to regular funds. Column (e) of Table 1 shows estimated allocations to the states at an appropriation of $1.7 billion. Column (a) shows the amount allotted to each state in FY2006, when $2.48 billion was appropriated for LIHEAP regular funds.

Following Table 1, Table 2 shows estimated allocations to the states at various hypothetical appropriations levels. These amounts are $1.75 billion, $2.0 billion, $2.25 billion, $2.5 billion, $2.75 billion, $3.0 billion, $4.0 billion, and $5.1 billion (the amount at which LIHEAP regular funds were last authorized in P.L. 109-58).

Table 1. LIHEAP Actual State Block Grant Fund Allotments for FY2006, FY2007, and FY2008, and Estimated Allotments for FY2009

($ in millions)

State

FY2006
Actual Allotments:
$2.48 billiona
(a)

FY2007
Actual Allotments:
$1.98 billionb
(b)

FY2008
Allotments Prior to
6-26-08:
$1.98 billionc
(c)

FY2008
Allotments After
6-26-08:
$1.98 billiond
(d)

FY2009 Est. Allotments at President's Request:
$1.7 billione
(e)

Alabama

31.310

16.769

16.774

17.111

14.365

Alaska

12.572

10.704

10.707

10.828

9.169

Arizona

15.142

8.110

8.112

8.275

6.947

Arkansas

22.765

12.796

12.799

13.057

10.961

California

153.184

89.963

89.985

91.797

77.062

Colorado

31.729

31.367

31.375

31.729

26.869

Connecticut

47.809

40.920

40.930

41.754

35.052

Delaware

10.141

5.431

5.433

5.542

4.652

District of Columbia

7.852

6.355

6.356

6.484

5.444

Florida

49.542

26.534

26.541

27.075

22.729

Georgia

39.170

20.979

20.985

21.407

17.971

Hawaii

2.555

2.113

2.113

2.137

1.810

Idaho

14.370

12.235

12.238

12.376

10.481

Illinois

145.959

113.259

113.287

114.565

97.017

Indiana

53.986

51.280

51.293

51.872

43.927

Iowa

36.762

36.343

36.352

36.762

31.131

Kansas

26.798

16.690

16.695

17.031

14.297

Kentucky

44.347

26.686

26.693

27.230

22.859

Louisiana

32.010

17.144

17.148

17.494

14.686

Maine

26.815

26.509

26.516

26.815

22.708

Maryland

58.499

31.332

31.340

31.971

26.839

Massachusetts

82.797

81.853

81.873

82.797

70.115

Michigan

108.770

107.529

107.556

108.770

92.109

Minnesota

78.363

77.469

77.488

78.363

66.359

Mississippi

26.843

14.377

14.381

14.670

12.315

Missouri

59.541

45.240

45.251

45.762

38.752

Montana

16.856

14.351

14.355

14.517

12.293

Nebraska

21.109

17.973

17.978

18.180

15.396

Nevada

7.112

3.809

3.810

3.887

3.263

New Hampshire

18.197

15.493

15.497

15.672

13.271

New Jersey

77.540

75.988

76.007

76.865

65.091

New Mexico

11.925

10.153

10.156

10.360

8.697

New York

250.974

248.112

248.173

250.974

212.531

North Carolina

69.038

36.976

36.985

37.730

31.674

North Dakota

18.310

15.590

15.594

15.770

13.354

Ohio

122.259

100.194

100.219

101.350

85.826

Oklahoma

28.780

15.415

15.418

15.729

13.204

Oregon

24.591

24.311

24.317

24.591

20.825

Pennsylvania

134.810

133.273

133.306

134.810

114.161

Rhode Island

15.825

13.473

13.477

13.629

11.541

South Carolina

24.867

13.318

13.322

13.590

11.408

South Dakota

14.871

12.662

12.665

12.808

10.846

Tennessee

46.363

27.033

27.039

27.584

23.156

Texas

82.421

44.144

44.155

45.044

37.814

Utah

17.120

14.576

14.580

14.745

12.486

Vermont

13.639

11.613

11.616

11.747

9.947

Virginia

71.259

38.166

38.175

38.944

32.692

Washington

40.450

39.988

39.998

40.450

34.254

West Virginia

23.818

17.660

17.665

17.935

15.128

Wisconsin

70.538

69.733

69.750

70.538

59.733

Wyoming

6.854

5.836

5.838

5.903

4.999

Total

2,449.16

1,949.83

1,950.314

1,977.027

1,670.213

Source: Department of Health and Human Services (HHS) final allocations for FY2006, FY2007 and FY2008. Estimated allotments for FY2009 are CRS estimates based on factors provided by HHS.

Note: These estimates take into account current program practice where HHS sets aside funds out of the regular LIHEAP fund appropriation for the territories, training and technical assistance, leveraging incentive grants, and the Residential Energy Assistance Challenge Option Program (REACH). This has implications for the total amount of funds going directly to the states. For example, an appropriation of $1.98 billion is estimated to result in $1.95 billion in regular LIHEAP funds going directly to the states, after the amounts for these set-asides are subtracted from the total appropriation.

a. The total regular fund appropriation for FY2006 was $2.48 billion, $1.98 billion of which was appropriated in P.L. 109-149, and $500 million in P.L. 109-204. Initially, P.L. 109-149 appropriated $2.0 billion for regular funds, but the amount was subject to a 1% across-the-board rescission, resulting in a $1.98 billion appropriation (P.L. 109-148). In addition, both training and technical assistance and the leveraging incentive and REACH funds were reduced by 1% in column (a).

b. Congress approved a year-long continuing resolution for FY2007 (P.L. 110-5), which was enacted on February 15, 2007. The law provided that LIHEAP receive the same amount of funds for FY2007 that was appropriated for FY2006 in P.L. 109-149, as reduced by a 1% rescission (P.L. 109-148).

c. The initial allotments for FY2008 were slightly greater than for FY2007, despite the similar appropriations levels, due to a 1.747% across-the-board rescission for most Departments of Labor, Health and Human Services, and Education programs. See P.L. 110-161, Division G, Section 528. This meant that set asides for leveraging incentive and REACH grants, and for training and technical assistance, were slightly reduced from FY2007 levels.

d. On June 26, 2008, HHS released an additional $26.7 million in formula grants to the states. These funds had been set aside for leveraging incentive and REACH grants until HHS realized that Congress had not appropriated these funds in P.L. 110-161. As a result, distributions were re-calculated under the "new" LIHEAP formula, and additional funds were provided to the states.

e. For FY2009, the President's budget would allocate $27.225 million for leveraging incentive and REACH grants, and $297,000 for training and technical assistance. The estimates at $1.7 billion assume that these amounts would be set aside out of the regular LIHEAP fund.

Table 2. LIHEAP Estimated State Allotments
at Hypothetical Block Grant Fund Appropriations Levels

($ in millions)

State

$1.75 billion
(a)

$2.0 billion
(b)

$2.25 billion
(c)

$2.5 billion
(d)

$2.75 billion
(e)

$3.0 billion
(f)

$4.0 billion
(g)

$5.1 billion
(h)

Alabama

14.792

16.939

25.470

36.021

47.488

57.336

76.627

97.847

Alaska

9.442

10.812

11.392

12.673

13.955

15.236

20.363

26.002

Arizona

7.153

8.192

12.318

17.420

22.966

27.814

39.351

50.249

Arkansas

11.287

12.925

19.435

26.709

29.410

32.111

42.914

54.799

California

79.353

90.872

126.272

140.478

154.684

168.889

225.712

288.218

Colorado

27.668

31.684

31.729

31.729

34.791

37.986

50.766

64.825

Connecticut

36.094

41.333

41.392

42.753

47.077

51.400

68.694

87.717

Delaware

4.791

5.486

8.249

10.734

11.819

12.905

17.246

22.022

District of Columbia

5.605

6.419

6.857

7.629

8.400

9.171

12.257

15.652

Florida

23.405

26.802

40.301

56.997

75.140

91.004

134.996

175.001

Georgia

18.505

21.191

31.864

45.065

59.410

71.952

106.735

138.365

Hawaii

1.864

2.134

2.248

2.501

2.754

3.007

4.019

5.132

Idaho

10.792

12.359

13.021

14.486

15.951

17.416

23.275

29.721

Illinois

99.901

114.403

114.565

118.401

130.374

142.347

190.240

242.922

Indiana

45.232

51.798

51.872

54.540

60.055

65.571

87.632

111.899

Iowa

32.057

36.710

36.762

36.762

36.762

36.762

43.050

54.971

Kansas

14.722

16.859

24.526

27.285

30.044

32.803

43.840

55.980

Kentucky

23.539

26.956

37.463

41.677

45.892

50.107

66.965

85.509

Louisiana

15.122

17.317

26.039

36.826

46.325

50.579

67.597

86.316

Maine

23.383

26.777

26.815

26.815

26.815

26.815

28.625

36.551

Maryland

27.636

31.648

47.588

59.764

65.808

71.851

96.026

122.618

Massachusetts

72.199

82.680

82.797

82.797

82.797

90.332

120.724

154.156

Michigan

94.847

108.616

108.770

114.820

126.431

138.042

184.486

235.575

Minnesota

68.332

78.251

78.363

78.363

78.363

78.363

78.363

90.633

Mississippi

12.682

14.522

21.837

27.293

30.053

32.813

43.853

55.996

Missouri

39.904

45.697

55.406

61.639

67.872

74.105

99.038

126.464

Montana

12.659

14.496

15.273

16.991

18.709

20.428

27.300

34.861

Nebraska

15.853

18.155

19.127

21.279

23.431

25.583

34.190

43.658

Nevada

3.360

3.847

5.785

8.182

10.786

13.064

19.379

25.121

New Hampshire

13.666

15.650

16.488

18.343

20.198

22.053

29.472

37.634

New Jersey

67.026

76.756

76.865

76.865

77.141

84.225

112.563

143.734

New Mexico

8.956

10.256

13.934

15.501

17.069

18.636

24.906

31.804

New York

218.850

250.618

250.974

250.974

250.974

252.031

336.827

430.102

North Carolina

32.615

37.350

56.161

78.646

86.599

94.552

126.364

161.357

North Dakota

13.751

15.747

16.591

18.457

20.324

22.190

29.656

37.869

Ohio

88.377

101.207

101.350

111.388

122.652

133.916

178.972

228.534

Oklahoma

13.597

15.570

23.412

33.111

39.479

43.105

57.607

73.560

Oregon

21.444

24.557

24.591

24.879

27.395

29.911

39.974

51.044

Pennsylvania

117.555

134.619

134.810

134.810

140.646

153.563

205.229

262.062

Rhode Island

11.884

13.610

14.339

15.952

17.565

19.178

25.631

32.728

South Carolina

11.748

13.453

20.228

28.608

37.715

42.282

56.508

72.157

South Dakota

11.168

12.790

13.475

14.991

16.507

18.023

24.086

30.756

Tennessee

23.844

27.306

41.058

50.724

55.854

60.983

81.501

104.071

Texas

38.938

44.590

67.047

94.823

125.009

151.400

224.589

291.143

Utah

12.857

14.724

15.513

17.258

19.003

20.748

27.729

35.407

Vermont

10.243

11.730

12.358

13.749

15.139

16.529

22.091

28.208

Virginia

33.664

38.551

57.967

69.555

76.589

83.622

111.757

142.705

Washington

35.272

40.392

40.450

40.450

44.062

48.109

64.295

82.100

West Virginia

15.577

17.839

21.296

23.692

26.087

28.483

38.066

48.608

Wisconsin

61.509

70.438

70.538

70.538

70.538

70.538

83.632

106.792

Wyoming

5.148

5.895

6.211

6.910

7.608

8.307

11.102

14.176

Total

1,719.868

1,969.529

2,219.191

2,468.852

2,718.513

2,968.175

3,966.821

5,065.331

Source: Congressional Research Service (CRS) calculations based on factors provided by the Department of Health and Human Services (HHS) in May 2007.

Note: For each of these estimates, $27.5 million for leveraging incentive grants, $300,000 for training and technical assistance, and the estimated grants to the territories have been removed from the total hypothetical grant amounts.

Footnotes

1.

For additional information on LIHEAP, see CRS Report RL31865, The Low-Income Home Energy Assistance Program (LIHEAP): Program and Funding, by [author name scrubbed].

2.

See Section 2604(a)-(d) of the Low Income Home Energy Assistance Act (Title XXVI of P.L. 97-35), as amended. The section is codified at 42 U.S.C. ยง8623(a)-(d).

3.

Depending on how Congress appropriates them, contingency funds may remain available for distribution in more than one fiscal year or they may expire with the fiscal year for which they were appropriated.

4.

See Division G, Section 528 of P.L. 110-161.