On Thursday, July 31, NEFI attended the Senate Appropriations Committee's markup hearing on two of the annual fiscal budget bills, Defense and Labor-Health and Human Services (Labor-HHS). The Labor-HHS bill is particularly relevant to NEFI and its members, as it includes funding for the Low Income Home Energy Assistance Program (LIHEAP).

We're pleased to report that the Committee has proposed a $20 million increase in LIHEAP funding, bringing the total to $4.045 billion for the upcoming fiscal year. You can view the full bill text here. LIHEAP funding details are located on page 96.

While this is great news for the program, significant challenges remain. In April, Health and Human Services Secretary Robert F. Kennedy Jr. implemented sweeping departmental cuts that included the complete layoff of the federal LIHEAP staff. These positions have not been refilled.

Currently, just one federal staff member is responsible for reviewing and approving more than 200 state and tribal LIHEAP plans, all due by September 2. This bottleneck poses a serious risk of delays in plan approvals and the disbursement of funds ahead of the winter.

Additionally, LIHEAP typically receives a 90% advance funding release from the Office of Management and Budget (OMB) to ensure states have resources ahead of the heating season. However, this year's release is uncertain. The President has once again proposed eliminating the program, and if Congress resorts to a Continuing Resolution, the advance release may not be granted.

The good news is that LIHEAP continues to enjoy strong bipartisan support. If we can sustain this positive momentum, it will increase pressure on the administration to release the funds.

If you have any questions please contact Liam Dotson, Manager of Government Affairs at liam.dotson@nefi.com or (202) 843-1000.