Now that the federal government has reopened, NEFI has received confirmation that staff at the U.S. Department of Health and Human Services (HHS), the agency that manages the national LIHEAP program, have resumed work and are actively working to expedite the release of LIHEAP funds to states.

All federal staff responsible for the LIHEAP program were terminated earlier this year. Management of the program has since been transferred to a small number of other HHS employees who were furloughed during the shutdown. Fortunately, the stopgap funding bill includes a provision that restores pay for furloughed employees and reverses any Reductions in Force (RIFs) that occurred during the shutdown, including for the staff that now manage LIHEAP.

In a strong showing of support, a bipartisan group of 31 Senators – including nearly all Senators from the Northeast and Mid-Atlantic states – sent a letter to HHS Secretary Robert F. Kennedy Jr., urging the immediate release of 90% of LIHEAP funding, a practice consistent with previous heating seasons. NEFI been in regular contact with these and other Congressional offices over the past six weeks to provide updates on the impact of the funding delay, share constituent concerns, and urge swift administrative action to release LIHEAP funds. You can read the full letter here.

At this time, we do not yet have a definitive timeline for when the funds will be disbursed, but NEFI will continue to advocate for swift action, monitor developments closely, and keep members and association partners up to date.

There is also a possibility that Congress could pass the full Labor-HHS-Education appropriations bill in the coming weeks. This would not only secure LIHEAP funding for the entire Fiscal Year (through September 30, 2026) but also provide a small bump in funding. Both the House and Senate Appropriations have proposed a small increase to LIHEAP funding of $10 million and $20 million, respectively, which sends a strong signal to the White House of bipartisan and bicameral support for the program.

NEFI is a member and serves on the board of the National Energy and Utility Affordability Coalition (NEUAC), which has been keeping us informed of developments as they advocate for LIHEAP here in Washington. Your support for our annual advocacy fund supports our continued work in this area. Visit www.nefi.com/donate to view a list of contributors or to contribute on behalf of your business.

We will continue to keep you updated as this situation develops. For more information, contact Liam Dotson, NEFI Manager of Government Affairs.