The Trump administration has not distributed more than $400 million meant to help low-income Americans pay heating and cooling costs, as the Iran war drives up energy costs and Senate appropriators demand that the funds be released.
The outstanding funds represent roughly 10 percent of the $4.45 billion Congress appropriated for the Low-Income Home Energy Assistance Program, which helps roughly 6 million households annually.
LIHEAP supporters say the holdup could not have come at a worse time. A nationwide cold snap, coupled with already rising electricity and gas prices this winter, means many Americans struggled more than usual to pay their bills. The U.S.-Israel attacks on Iran in late February, and Iran’s subsequent closure of the Strait of Hormuz, created further price shocks.
States received the bulk of LIHEAP funds in November, shortly after Congress passed a stopgap funding measure. But they have not received additional funds included in the fiscal 2026 spending bill Congress passed at the beginning of February. State LIHEAP administrators say it typically takes the Department of Health and Human Services, which administers the program, 30 days to release funds following the passage of an appropriations bill.
