• Basic Energy Assistance and Crisis Assistance
• The Emergency Contingency Fund
• Advance Funding
• Weatherization Efforts
• Leveraging Incentive Program
• Residential Energy Assistance Challenge Option (REACH)
• Elderly, Disabled, Children
• Indian Tribes

Basic Energy Assistance and Crisis Assistance are the core of LIHEAP, consuming about 80 percent of appropriated funds. The LIHEAP statute authorizes HHS to assist eligible households in meeting the costs of home energy, which is defined as a source of heating or cooling in residential dwellings. Households are eligible under Federal standards when incomes do not exceed the greater of 150 percent of the poverty level for their state or 60 percent of the state median income. However, states may set income limits as low as 110% of the poverty level. The law requires benefits to be targeted to households with the highest energy costs in relation to income and household size.

The Emergency Contingency Fund is needed to supplement regular authorization because some winters are worse than others, and emergencies in certain regions may require flexibility in meeting needs beyond the formulas established under the program authorization. During the last four years, for example, funds were released to provide heating assistance to offset extreme cold, price spikes in heating oil, propane and natural gas and to cover the additional cooling costs in the Midwest during a prolonged summer heat wave.

In the event of a weather related emergency, the President has the authority under the block grant legislation to release additional funds to provide supplemental grants. Emergency funds, set at $300 million in recent fiscal years, have filled critical needs.

Advance Funding establishes the level of funding for the succeeding fiscal year. An advance appropriation is needed because the heating season formally starts on October 1, the first day of the federal government's fiscal year. When Congressional schedules delay the budget and appropriations cycle, continuing resolutions must be approved.

LIHEAP collapses under the scenario of a continuing resolution in the autumn because funds are needed during the cold winter months. The states traditionally spend over 70 percent of the LIHEAP funds during the first two quarters of the federal fiscal year. However, continuing resolutions disburse funds on a pro-rated basis over a 12-month period. Many states cannot obligate funds unless funding is guaranteed by the federal government.

In some years, Congress has recognized this funding anomaly by providing advance appropriations to ensure that states can plan their disbursements. Advance funding was discontinued during the last few years, however, and should be restored in the federal appropriations process.

Weatherization. States may allocate up to 15 percent of their basic grant allocation for low-cost residential weatherization or other energy-related home repair and up to 25 percent if they meet certain conditions and obtain a waiver from HHS. In 2000, 46 states allocated $159 million for this purpose [1]. The program reduces the heating and cooling costs for low-income families by improving the energy efficiency of their homes and thereby improves their health and safety.