Federal Government releases funds for program aimed at helping people pay utility bills

More than $421 Million dollars was released to states, tribes and territories on April 23 to support the Low Income Housing Energy Assistance Program (LIHEAP). This release of funds is the final installment for 2026 and it will help an estimated 6 million households to pay for energy costs.

However, one in six households is behind on their energy bills according to the recently released 2024 Residential Utility Disconnections Report, by the U.S. Energy Information Administration. Utility companies disconnected electricity service 13.4 million times in 2024, a figure that the report says confirms the electricity shutoff crisis is more widespread than previously estimated, "underscoring the depth of the nation's energy affordability challenges."

Electricity prices rising faster than inflation and increased temperatures forcing people to run air conditioners longer and more frequently are the two main factors leading to energy affordability, according to a report released by the National Energy Assistance Directors Association (NEADA).

The association is requesting that Congress increase its appropriation for the program to $7 billion next year. In the latest budget request, President Trump advocated for eliminating the program.

Households in warmer regions face the largest increases because they consume more electricity for cooling and are more exposed to periods of peak demand, when electricity is most expensive. However, cooling costs among Western states are also projected to increase up to 11.5%, according to the report.

NEADA's report says several states are moving to increase summer shut-off protections. There are currently 19 states and the District of Columbia that provide some protections against utility companies shutting off electricity for customers who are behind on utility payments.

Arizona recently imposed a summer protection rule to protect low-income families. Despite some progress, 31 states have no summer shut-off protections at all (Appendix 2), leaving low-income families vulnerable to the dangerous health conditions caused by prolonged exposure to extreme heat.

Extreme summer temperatures are higher and more widespread. Forecasts from NOAA indicate that 2026 is likely to bring above-average temperatures across most of the country.

This story was produced by the Mountain West News Bureau, a collaboration between Wyoming Public Media, Nevada Public Radio, Boise State Public Radio in Idaho, KUNR in Nevada, KUNC in Northern Colorado, KANW in New Mexico, Colorado Public Radio, KJZZ in Arizona and NPR, with additional support from affiliate newsrooms across the region. Funding for the Mountain West News Bureau is provided in part by the Corporation for Public Broadcasting and Eric and Wendy Schmidt.

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