LIHEAP | News

Advocates Urge Immediate Release of LIHEAP Emergency Dollars

Older Americans Report
September 27, 2002

Legislators from both chambers are urging President Bush to release an additional $200 million in emergency funds for the Low Income Home Energy Assistance Program before the money can no longer be used.

Bush recently released $100 million in emergency funds out of $600 million that had accumulated over two years. There is no deadline for releasing the $300 million appropriated for Fiscal 2001, but the $200 million in emergency funds left for Fiscal 2002 must be spent by Oct. 1.

The appeal has garnered 60 signatures in the House and 39 in the Senate, and is being watched by David Fox, communications director for the Campaign for Home Energy Assistance (CHEA).

“It’s ‘use it or lose it,’” he told OAR, referring to the soon-to-expire Fiscal 2002 funds.
Sen. John Breaux (D-La.) and his home-state colleague Sen. Mary Landrieu (D) have lent their voices to the effort, noting that Louisiana was not among the 33 states that got part of the $100 million released earlier (OAR, Aug. 16, p. 262).

Breaux cited the West Nile Virus, which has hit his state hard, in seeking the release of the addi-tional $200 million. He also criticized the funding formula, which favors states with colder climates.

The only way Congress can recoup the $200 million if Bush falls to release it is by adding it to the Department of Health and Human Services appropriations bill for Fiscal 2003.

Dealing with Uncertainty

Meanwhile, the delay in funding HHS -- the Senate Appropriations Committee has passed its measure but the House Appropriations Committee has not -- means the amount of regular LIHEAP grants is unknown.

The Senate bill (S. 2766) provides $1.7 billion for regular funding, but the House bill (H.R. 5320) offers only $1.4 billion. Both contain $300 million in emergency dollars.

The gridlock at this time of year was not always a problem for LIHEAP programs, which want to know how much money they have as they prepare for the heating season. Prior to Fiscal 2002, LIHEAP funds were appropriated a year ahead of time, in what is called advance appropriations.

“It’s an incredibly useful way to go,” Fox said. “It allows states to plan appropriately and to start their programs on time.”

The advance technique was abandoned for Fiscal 2002, however. This is a problem for LIHEAP programs that do not want -- or are not allowed by state law -- to spend money merely on the assumption it will be forthcoming from Washington.

To deal with this last year, when Oct. 1 came and went without a budget for HHS, the Bush administration released a significant portion of the regular LIHEAP grants anyhow.