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Many families are struggling as the cost of heating soars. MediaNews Group/Boston Herald via Getty Images

Heating bills through the roof? The government has released $3.6B in relief money delayed by the shutdown. What you need to know to claim a share

After a period of uncertainty caused by a record-long federal shutdown, the federal government has released $3.6 billion in aid for millions of Americans struggling to keep their homes warm.

The National Energy Assistance Directors Association (NEADA), an advocacy group, says that help is urgently needed, with heating costs expected to rise 9.2% this winter (1).

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“Millions of households are being pushed deeper into utility debt and closer to shut-offs simply because they cannot afford to keep their homes warm,” NEADA’s executive director Mark Wolfe told The New York Times.

Case in point? Adam Hall. who lives in rural Kentucky, told The Daily Yonder his monthly gas bill has jumped from $80 to $300 in the past five years (2). He regularly seeks government assistance with his utility bills.

The Department of Health and Human Services released the $3.6 billion to states and tribes through the Low Income Home Energy Assistance Program (LIHEAP), which supports an estimated 5.9 million households (3).

The average LIHEAP grant — in the mid-hundreds — shows up as direct credits on people’s utility accounts and fuel deliveries.

But even with that support, many Americans still report monthly heating bills exceeding $500, especially those living in rural areas, colder states and in older, less energy-efficient buildings (4).

For older homeowners and renters on fixed incomes, the spike in utility costs hits hard. For them, LIHEAP grants do more than just pay a bill, they free up limited income for other necessities like food and medicine.

Who’s eligible for federal aid on heating bills

Benefits vary based on location, income, family size, the type of heating fuel used — and whether the household is facing an immediate emergency like a shut-off notice or an empty oil tank.

Grants usually fall in the $200 to $350 range, according to the National Council on Aging.

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But some states can provide larger awards when funding allows, though it is important to note that this aid usually covers only a portion of an annual heating bill (5).

Federal law permits states and tribal programs to set LIHEAP income cutoffs at the higher of 150% of the federal poverty guideline or 60% of the state median income (6), allowing for high-income thresholds in expensive areas.

For example, in Washington, D.C., a one-person household can qualify for LIHEAP aid with an annual income just under $50,000. In California, a two-person household with a combined income of $50,000 also qualifies.

The key is to apply for the support. According to NEADA, only 17% of the households who qualify for LIHEAP are enrolled(6).

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How to apply for LIHEAP grants

Speed is essential because acting quickly can secure help before the allocated funds run out. As The New York Times reports, Congress has cut the annual LIHEAP allocation from $6.1 billion in 2023 to less than $4 billion this year.

To apply, individuals must contact their state or local LIHEAP office, which is often a community action agency.

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The application process usually requires:

  • Proof of identity
  • Social Security Numbers for household members
  • Recent pay stubs or benefit letters to verify income. And
  • A current utility or fuel bill that clearly displays the account number.

You may qualify for LIHEAP aid or related weatherization funds to go toward energy-efficient upgrades.

These can include fixing or replacing aging furnaces, sealing drafty windows and doors, or adding insulation to leaky homes.

For those who may earn too much to qualify for LIHEAP, there are still practical steps you can take right now to lower your utility bills.

You can save between 7% and 21% of your heating costs if you drop the temperature on your thermostate from 72 degrees to 65 degrees.

As the old saying goes, your sweater is already paid for.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

New York Times (1); The Daily Yonder (2); LIHEAP Clearinghouse (3); CBS News (4); National Council on Aging (5); U.S. Department of Health and Human Services (6)

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Will Kenton Contributor

Will Kenton is a personal finance writer with a Master's degree in Economics who has been published in Investopedia, AP News, TIME Stamped and Business Insider among other publications.

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