In response to the growing number of families having difficulty meeting rising energy costs in the wake of OPEC’s 1973 embargo and the 1979 decision to further reduce oil output, Congress established LIHEAP (Low Income Home Energy Assistance Program) during its 1981 session. Signed into law by President Reagan, the program become administered by the Department of Health and Human Services (HHS), providing nearly $2 billion in energy assistance to those with medical needs, as well as well providing for certain low income families.
Building off of a foundation in the Department of Energy’s Weatherization Assistance Program, which provided funds to improve home energy efficiency, as well as the Community Services Administration Emergency Energy Assistance Program, LIHEAP marked the Federal Government’s growing contributions to help moderate home energy costs.
Initially designed as grants and to recipients of Supplementary Social Security Income, LIHEAP funds are distributed states on an annual basis, with supplements provided by state legislatures as well as contingency funds released at the discretion of the President. In order to quality for the programs, households must meet certain income standards as defined by each state. While the federal government requires that grant recipients earn no more than 50% beyond the federally-defined level of poverty, some states offer expanded programs for those who earn up to double the federal poverty rate or more.
Since funds are distributed by the state, grant recipients must apply and provide proof of their need, as well as qualification. Services provided differ by each state but often include financial grants, as well as grants for home weatherization according to standards.
