There could not have been a worse time for the Trump administration to lay off the entire staff of a $4.1 billion federal program that helps the poorest Americans pay their heating and cooling bills.
As we move into the summer months, when energy usage will be at its peak, we are deeply concerned about the future of the federal Low Income Home Energy Assistance Program, which helps more than 300,000 New Jerseyans pay their utility bills.
LIHEAP administrators were part of a massive layoff in the federal Department of Health and Human Services earlier this month of 10,000 workers, on top of the 10,000 other HHS employees who took early retirement and buy-outs.
It has been widely reported that electric rates will be increasing by up to 20% in June because of high demand and limited supply on the regional power grid. Utility companies, which do not set these rates, are doing all they can in a limited capacity to offer relief to those in need. But LIHEAP has always been a consistent resource, since Congress enacted the program in 1981. According to federal data, 303,493 households in New Jersey were enrolled during the 2024 budget year. Members of the New Jersey Utilities Association continually note the demand is higher than the funding that is earmarked. With the anticipated summer spike, we anticipate demand for LIHEAP will be at record levels in New Jersey, while we collectively ponder if and how the financial support will come.
Over the years, our most vulnerable residents benefitted from up to $1,278 for heating or cooling, paid in a single sum. An important component of the program is funding to weatherize a dwelling, making it more energy-efficient and helping reduce bills.
According to published reports, there is only $378 million remaining in the program for the current budget year. As air conditioners crank up, there is little chance the remaining funds can support the 6.2 million Americans who rely on this program and the many others who are eager to apply. Moreover, one must ask how the program will operate if there is no staff remaining in Washington, D.C., to serve as the administrator.
It is important to note that Congress defunded another utility relief program in 2023, known as the Low-Income Household Water Assistance Program. It helped pay the water and sewer bills for those in need. LIHWAP supported more than 1.5 million households, preventing nearly 1 million disconnections of water service, restoring water services more than 100,000 times and reducing more than 1.1 million water bills.
Where does New Jersey go from here?
So, as the federal government pulls away, where do we go from here?
NJUA members continue to educate customers about other resources for relief, such as the state’s Universal Service Fund Program, NJ SHARESand the Winter Termination Program, protecting customers from shut-offs.
NJUA members are also eager to share tips and resources for how residents can make their homes as efficient as possible. Among the many outreach initiatives, utility representatives attend local events to share information, send money-saving suggestions to customers in their bills, and have robust websites and social media accounts that are focused on ways to control the costs for electric, gas, water and broadband.
But we need the federal government to recognize the problem of rising utility costs and serve as an active and reliable funding partner. As the demand continues to grow, as New Jersey steadily expands, Congress can’t look the other way or blindly advocate for local solutions.
No one is expecting that utility rates can be immediately controlled, as work is desperately needed to expand regional capacity. But without these consistent safety net programs supported by federal lawmakers, how can we expect our most vulnerable residents to pay escalating bills?
Richard Henning is president and CEO of the New Jersey Utilities Association.
