With the federal government now reopened, staff at the U.S. Department of Health and Human Services (HHS) are working to expedite the release of Fiscal Year 2026 LIHEAP funds to states, tribes, and territories. However, significant delays remain due to the record-setting 43-day government shutdown and ongoing staffing challenges at HHS.

Congressional advocacy for the program has intensified as colder weather sets in across the U.S. A bipartisan group of 31 Senators sent a letter to HHS Secretary Robert F. Kennedy Jr. urging immediate release of 90% of LIHEAP funding, consistent with previous heating seasons. Additionally, nearly 100 House Democrats sent a similar letter to Secretary Kennedy and OMB Director Russ Vought emphasizing the urgent need to release funds.

Senator Peter Welch (D-VT) took to the floor last week to call on the Trump Administration to stop stalling and release all $4 billion in federal LIHEAP funding. "We are in the cold weather season, and getting money out after the cold weather season does not help keep people warm," Welch said. He noted that 26,000 Vermonters rely on the program to help pay heating bills each winter. "Secretary Kennedy has a legal responsibility to disburse the current LIHEAP funding. It’s illegal for him to withhold those funds, as well as pretty cruel." Watch his full remarks on the Senate floor online here.

In a normal year, it could take up to six weeks for federal LIHEAP funds – issued in the form of grants to states, tribes, and territories – to be received and made available to beneficiaries. The recent shutdown and ongoing staffing issues at HHS could create additional delays. However, NEFI has been informed the agency is working to process the funds as quickly as possible, though it remains impossible to predict an exact timeline.

Impacts of the federal funding delay vary significantly state by state. Fuel dealers that participate in the LIHEAP program should continue to monitor communications from their regional or state associations, state LIHEAP administrators, and local Community Action Programs (CAPs) for updates.

NEFI will continue monitoring developments at the federal level and keeping members informed. For questions, contact Liam Dotson at liam.dotson@nefi.com.