The Trump Administration appears poised to recommend the complete elimination of the federal Low-Income Home Energy Assistance Program (LIHEAP) in its upcoming Fiscal Year 2026 budget proposal, according to a recently leaked document. This potential cut comes as part of broader proposed reductions to the U.S. Department of Health and Human Services (HHS), which administers the program.

NEFI participated in and sponsored this year's LIHEAP Action Day, which is organized by the National Energy & Utility Affordability Coalition's (NEUAC), of which NEFI is a member. We also joined 1,407 organizations, including local utilities and heating fuel dealers, that signed NEUAC's all-parties letter to Congress advocating continued LIHEAP funding. The letter, distributed to all Congressional offices last week, represents a united front of businesses and advocacy groups determined to preserve this vital safety net.

"LIHEAP provides essential assistance to our most vulnerable neighbors," said NEFI President and CEO Jim Collura. "Since the program's inception during the Reagan administration, our industry has witnessed firsthand how it helps seniors, disabled veterans, and families with young children avoid impossible choices between heating their homes and purchasing food, medicine, and other necessities."

Bipartisan Congressional support is already mobilizing. A "Dear Colleague" letter circulating in the House of Representatives, led by Congressmen Andrew Garbarino (R-NY02) and Jim McGovern (D-MA02), among others, emphasizes LIHEAP's targeted approach in addressing energy insecurity. A similar bipartisan letter was sent earlier this month, led by Senator Susan Collins (R-ME) and Jack Reed (D-RI) and a group of Democrats sent a more pointed letter to the secretary last week.

While LIHEAP management has varied in effectiveness from state to state over the years, the program's core mission remains critical, especially as energy costs and inflation strain household budgets. Currently, LIHEAP can only serve approximately one in six eligible households nationwide due to funding limitations.

NEFI is coordinating with NEUAC and other partners to defend the program through meetings with key lawmakers and advocacy for Congressional signatures on letters supporting LIHEAP funding. We are preparing a call-to-action for members that will activate if the elimination proposal is formalized in the President's forthcoming budget proposal. Note that such proposals are non-binding, and the decision ultimately rests with Congress.

"Our commitment to LIHEAP reflects our industry's understanding that energy access is not a luxury but a necessity," Collura added. "While we acknowledge that program's administration isn't perfect in every state, the alternative—millions of vulnerable Americans unable to afford their home energy bills —is simply unacceptable."

NEFI members are encouraged to watch forthcoming alerts regarding opportunities to engage with lawmakers on this issue. For more information contact Liam Dotson, NEFI Manager of Government Affairs, at liam.dotson@nefi.com.