Kuhl Calls on Congress to Increase LIHEAP Funds

Date: Nov. 15, 2005
Location: Washington, DC
Issues: Energy


KUHL CALLS ON CONGRESS TO INCREASE LIHEAP FUNDS

Home heating assistance for low-income "more critical than ever" this winter

WASHINGTON, D.C., Nov 15 - U.S. Representative John R. "Randy" Kuhl, Jr. (R-Hammondsport) today sent a letter along with several House colleagues calling on the House Appropriations Committee to increase Low-Income Heating Assistance Program (LIHEAP) funds in the Fiscal Year 2006 Labor, HHS, Education Appropriations Bill.

"Increasing LIHEAP funds now is more critical than ever," said Rep. Kuhl. "The hurricanes caused a tremendous disruption to our economy and the energy markets, so we simply must bolster the LIHEAP funds to prepare for a greater need than we may have faced in the past. The colder it gets this winter, the more seniors and low-income families are going to be faced with crippling heating costs that could force them to choose between food and heat. That's just unacceptable, and we can do something about it. That's why I've been fighting for supplemental funds in the budget reconciliation bill and an increase in funds for next year's budget."

"This Department and the residents of Cattaraugus County are deeply appreciative of Congressman Kuhl's efforts to obtain increased appropriations for the LIHEAP Program," said Wendy Bourgeois, Commissioner of the Cattaraugus County Department of Social Services. "During the first two weeks of the program, this Department experienced a 50% increase in the number of families and individuals applying for LIHEAP. In many instances, because of the steep fuel prices, the regular LIHEAP benefit would not even pay for a delivery for the families and individuals, many of whom live on a fixed income. I am fearful that this Department will run out HEAP funds before the end of the heating season, so anything Representative Kuhl can do to increase the LIHEAP funds and ease the burden on the low income residents of Cattaraugus County would be extremely beneficial."

"During the 2005-06 heating season, senior citizens can expect to see an increase of between 35 to 50% on their monthly utility bills. This will impact all seniors, and, in particular, low income seniors," said Helen Sherman, Director of the Ontario County Office for the Aging. "I am happy to report that Congressman Randy Kuhl has been working diligently on behalf of all senior citizens to secure increased funding for the Heap Program this coming winter. As an advocate for older people, Congressman Kuhl realized the effect the increased fuel costs would have on seniors' budgets and has proceeded to try and secure a way that would ease the burden.

"Congressman Kuhl is a sound advocate for senior citizens," Sherman continued. "An increased HEAP benefit will help to protect the health and well being of seniors this winter."

"I thank Congressman Kuhl for his determination in obtaining additional federal funding for the 2005-2006 HEAP season," said Kathryn Biehl, Steuben County Commissioner of Social Services. "As the nation faces an overwhelming increase in fuel and heating costs, this additional funding is imperative. In Steuben County alone, initial HEAP benefits are not enough to cover the cost to fill a fuel tank. Consequently individuals are required to reapply for Emergency Benefits in order to have the financial resources necessary to fill their fuel tanks for the first time of the season. This is causing undo stress on the individuals and the system. The lines are long and the resources short. In just two weeks into the HEAP season, Steuben County has well over 5,000 eligible applications in process. We have seen an increase over last year and anticipate a much larger increase before the season is over."

The LIHEAP program is a program to help low-income households pay their home heating bills if they cannot afford it based on their household income. Individuals apply to the local county social services agency to see if they qualify to receive the benefit based on predetermined income levels. Local energy providers and the New York State Public Service Commission estimate an average increase in heating bills of between 20% and 55%, depending on temperatures and market fluctuations that are difficult to predict.

TEXT OF LETTER TO CHAIRMAN RALPH REGULA AND RANKING MEMBER DAVID OBEY FOLLOWS:

Dear Chairman Regula and Ranking Member Obey:

We are writing to urge you to increase funding for the Low-Income Home Energy Assistance Program (LIHEAP) to the highest level possible in the Labor, Health and Human Services Conference Agreement for fiscal year 2006. Currently, the House has funded LIHEAP at $2.006 billion for regular state block grants and the Senate has funded the program at $1.883 billion for regular state block grants and $300 million for contingency funding. Both levels fall far short of the needs this coming winter and year.

The destruction caused by this year's hurricane season is rippling across our economy, generating significant increases in energy prices. With the winter just around the corner many cold-weather states are bracing for what could be the most expensive heating season in history. Based on the Energy Information Administration's most recent Short-Term Energy Outlook, "On average, households heating primarily with natural gas likely will spend $306 (41 percent) more for fuel this winter than last winter. Households heating primarily with heating oil can expect to pay, on average, $325 (27 percent) more this winter than last. Households heating primarily with propane can expect to pay, on average, $230 (21 percent) more this winter than last... Should colder weather prevail, expenditures could be significantly higher."

For many low-income families, disabled individuals and senior citizens living on fixed incomes, these price increases will make home energy unaffordable.

Even prior to the damage this year's hurricane season caused our energy markets Congress recognized the vastly reduced purchasing power of this important program and increased the authorization from $2 billion to $5.1 billion in the newly enacted Energy Policy Act. We now find ourselves in an even more challenging situation. To ensure all our states are helped this program requires significantly more funding.

While we understand the budgetary constraints governing Conference negotiations, we encourage you to do whatever you can to fund this program at the highest level possible to expeditiously deliver this vital funding to the states before the arrival of severe winter weather. Funding LIHEAP at or below last year's level ($1.885 in regular state block grant funding and $298 million for contingency funds) will prove perilously inadequate. Thank you for consideration of this request.

http://kuhl.house.gov/News/DocumentSingle.aspx?DocumentID=37035

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