Bill Overview
Title: LIHEAP Act
Description: This bill increases for FY2023-FY2024 the federal income eligibility threshold for the Low-Income Home Energy Assistance Program, which provides federal grants to states, tribes, and territories to assist low-income households pay for heating and cooling costs. Currently, households are eligible with incomes at or below 150% of the poverty rate or 60% of the median income of their applicable state, tribe, or territory. This bill permits payments to households with incomes that are 75% of the applicable median income.
Sponsors: Rep. Pappas, Chris [D-NH-1]
Target Audience
Population: People needing financial assistance for heating and cooling costs
Estimated Size: 65000000
- The Low-Income Home Energy Assistance Program (LIHEAP) is a federally funded program in the U.S. that helps families with energy costs.
- Eligibility expansion by increasing the income threshold from 60% to 75% of the median income will make more households eligible.
- There are approximately 130 million households in the U.S.
- As of 2023, about 10% of households were eligible under the old threshold.
- With the new threshold, it's estimated that an additional 5-10% of households might become eligible, increasing the total eligible households to about 15-20%.
Reasoning
- The policy aims to extend energy assistance to households with incomes up to 75% of the median income, likely increasing the number of eligible households by 5-10%.
- This policy is especially relevant in areas with extreme weather conditions where heating and cooling costs make up a significant portion of household expenses.
- The additional funding is limited to $2 billion in the first year, which may influence which eligible households receive support and the extent of that support.
- Households in colder climates, or areas with high energy costs, are likely more impacted due to significant heating or cooling expenses.
- Some households at the lower end of the new eligibility criteria may receive more substantial relief, improving their wellbeing scores more significantly.
- The distribution should consider variations in cost of living and climate conditions across different states and territories.
Simulated Interviews
Nurse (Buffalo, NY)
Age: 34 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 14/20
Statement of Opinion:
- The current energy bills are a strain on my budget, especially in winter.
- I hope the policy will provide me with much-needed relief to better care for my children.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 4 |
| Year 10 | 8 | 3 |
| Year 20 | 6 | 2 |
Retired HVAC Technician (Dallas, TX)
Age: 60 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- Heating and cooling costs make my fixed retirement income tighter.
- Participation in energy assistance programs could help manage my expenses better, giving me peace of mind.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 4 |
| Year 10 | 5 | 3 |
| Year 20 | 4 | 3 |
Software Developer (San Francisco, CA)
Age: 28 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 12/20
Statement of Opinion:
- I don't foresee my energy bills being a major concern given my tech salary.
- The policy likely won't affect me directly, but it's good for those who need it.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Elementary School Teacher (Phoenix, AZ)
Age: 45 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 7.0 years
Commonness: 15/20
Statement of Opinion:
- Cooling bills in Phoenix can be brutal; any help would relieve some financial pressure.
- I’m hopeful that increased eligibility will include teachers like me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 4 |
| Year 10 | 6 | 3 |
| Year 20 | 5 | 3 |
Construction Worker (Chicago, IL)
Age: 50 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 15.0 years
Commonness: 15/20
Statement of Opinion:
- Winter heating costs can be overwhelming, especially during periods of low work availability.
- This policy change is critical but might need more outreach to ensure workers like me benefit.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 7 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 4 |
| Year 10 | 8 | 3 |
| Year 20 | 6 | 3 |
Retired Librarian (Miami, FL)
Age: 73 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 8.0 years
Commonness: 13/20
Statement of Opinion:
- On my fixed income, high cooling bills really hit hard in the summer months.
- Hopefully, the policy will keep me from having to cut back on other essentials.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 3 |
Freelance Graphic Designer (Portland, OR)
Age: 39 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 4.0 years
Commonness: 11/20
Statement of Opinion:
- Without predictable income, energy bills can be unpredictable.
- The LIHEAP bill might just help me stabilize my finances.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 4 |
| Year 10 | 5 | 3 |
| Year 20 | 4 | 3 |
College Student (Las Vegas, NV)
Age: 22 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 10/20
Statement of Opinion:
- Energy costs during school year are tough to manage on a part-time wage.
- This bill is a lifesaver in stretching my limited budget further.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 4 |
| Year 10 | 5 | 3 |
| Year 20 | 5 | 3 |
Factory Worker (Detroit, MI)
Age: 47 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 16/20
Statement of Opinion:
- The energy bills feel unsustainable with my part-time work situation.
- I really need this policy change to help keep things manageable.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 7 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 7 | 4 |
| Year 10 | 6 | 3 |
| Year 20 | 5 | 3 |
Nurse Aide (Boston, MA)
Age: 55 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 8.0 years
Commonness: 14/20
Statement of Opinion:
- Being both a provider and caregiver, the rising energy costs heavily strain my finances.
- The policy would alleviate some financial stress, allowing better care for my parents.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 4 |
| Year 10 | 5 | 4 |
| Year 20 | 5 | 3 |
Cost Estimates
Year 1: $2000000000 (Low: $1500000000, High: $2500000000)
Year 2: $2000000000 (Low: $1500000000, High: $2500000000)
Year 3: $0 (Low: $0, High: $0)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- Potential increase in the federal budget allocation will be necessary to cover the expanded eligibility for LIHEAP.
- State administration of the funds might need to adjust to handle increased applications and distributions.