WASHINGTON, D.C. — In another effort to provide Low Income Home Energy Assistance Program (LIHEAP) assistance to low-income Americans, Senators Susan Collins (R-ME) and Jack Reed (D-RI) sponsored a motion to instruct conferees to the Deficit Reduction Bill to include an additional $2.9 billion in LIHEAP funding. This request is in addition to the $2.2 billion already included in the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act of 2006, bringing the total appropriated amount to $5.1 billion.
Speaking on the Senate floor, Senator Collins said; “this funding is absolutely critical to help our nation’s citizens keep warm this winter. Just yesterday, I was in Northern Maine, in Aroostook County , and the high temperature for the day was just 12-degrees… in weather like that people simply have no choice but to devote a very large part of their budget to keeping warm. Unfortunately, with the escalating costs of home heating oil, many people simply cannot afford to do so.”
Senator Collins, co-chair of the Northeast-Midwest coalition, has long been committed to seeing LIHEAP assistance funded at an adequate level.
Each year, 4.5 million low-income families rely on LIHEAP to assist with the costs of heating their homes. LIHEAP is a federal block grant program that provides states with annual funding to operate home energy assistance programs for low-income households. In addition to helping to pay energy bills for low-income families and the elderly, LIHEAP helps to fund energy crisis intervention programs, low-cost residential weatherization and other energy-related home repairs.
Following is the text of Senator Collins’ floor statement:
“I rise today to join my colleague from Rhode Island to offer a motion to instruct the conferees to include $2.9 billion for the Low Income Home Energy Assistance Program in the budget reconciliation bill. This funding is critical to help our nation’s low-income citizens keep warm this winter.
“I believe we simply need more LIHEAP funding this year. Let me describe the situation that we are facing in my home state. I was meeting with constituents yesterday in Aroostook County , which is the northern most county in Maine and where I grew up. The high was just twelve degrees. In weather like this, people have no choice but to devote significant household resources to heat their homes. Unfortunately, many people cannot afford to do so.
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“In Maine , 78% of households use home heating oil to heat their homes. Currently, the cost of home heating oil is roughly $2.34 per gallon, $0.38 above last year's already inflated prices. These high prices greatly increase the need for assistance, and at least 3000 additional Mainers are expected to apply for LIHEAP funding this year. With more people in need of assistance, the benefit is expected to fall by roughly 10%, to $440 per qualifying household.
“Unfortunately, at today's high prices, $440 is only enough to purchase 188 gallons of oil -- far below last year's equivalent benefit of 251 gallons and not nearly enough to get through even a small portion of a Maine winter. With rising prices and falling benefits, we have a problem. Just to purchase the same amount of oil this year as last year, Maine would need an additional $10 million in LIHEAP funds.
“Just a few months ago the President signed into law the Energy Policy Act of 2005. This law, which passed the Senate overwhelmingly, authorizes $5.1 billion for the LIHEAP program for FY 2006. Unfortunately, even though Chairman Specter worked very hard to increase funding in the Labor HHS bill, that bill only provides $2.2 billion in LIHEAP funding. $2.2 billion is not nearly enough.
“Our nation was struck by three extremely powerful hurricanes. While these hurricanes were devastating to the people of Florida and the Gulf Coast , they have also had a major impact on the rest of the nation. Just as the nation should be building oil supplies for the winter heating season, these hurricanes have disrupted our already strained supplies and sent both heating oil and gasoline prices to painfully high levels.
“While high energy prices have been challenging for many Americans, they impose an especially difficult burden on low-income families and on the elderly living on limited incomes. Low-income families spend a greater percentage of their incomes on energy and have fewer options available when energy prices soar. High energy prices can even cause families to choose between keeping the heat on, putting food on the table, or paying for much-needed prescription medicine. Mr. President, these are choices that no American family should ever have to make.
“With winter upon us and energy prices soaring, home heating bills are set to pound family budgets mercilessly. For low income families, LIHEAP funds can be the factor that prevents families from having to choose between turning off the heat or putting food on the table. I call on my colleagues to support this motion to instruct the conferees to include this assistance in the budget reconciliation bill.”