Almost $4 million in federal funds are being distributed to states to help families who may be struggling to pay their utility bills. The funds come as energy costs are on the rise.
The average household is expected to spend more than three times the rate of inflation on utility bills this year. The increased costs are due to rising electricity and natural gas prices – and higher demand especially during recent cold weather. That's according to the National Energy Assistance Directors Association, a nonprofit that represents state chapters of the Low Income Home Energy Assistance Program.
On average, households are expected to spend $995 on heating this winter, an increase of $84 from last year. Families that rely specifically on electric heating are projected to see the largest increases, with costs rising 12.2% since the 2024-2025 winter season.
Mark Wolf is the executive director of the association. He said the energy assistance funds are critical for families struggling to pay monthly bills. There are a number of reasons for increased utility costs, but ultimately, low-income families carry a disproportionate burden.
"For a low income family, they spend about 10% of their income on electricity and natural gas as compared to a high income family that only spends about 2 and a half to 3%, Wolf said. "So when prices go up, it's much harder for a low income family to afford that bill."
The majority of assistance funds are typically used for heating. About 20% are used for cooling in warmer states during summer months.
Families needing help with utility assistance can go to the Low Income Home Energy Assistance Program clearinghouse, where they can check eligibility in their state.
On the federal level, about $3.7 billion was allocated for the energy assistance program from the Office of Community Services for the 2026 fiscal year. Of all the Mountain West states, Colorado will receive the largest grant – $52 million – followed by Arizona ($30 million), Utah ($25 million), Idaho ($20 million), New Mexico ($18 million), Nevada ($15 million) and Wyoming ($9 million).
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.
Copyright 2026 KNPR News