Although far from the physical ravages of Hurricane Katrina, many low-income residents of Maine and other northern states will face a cold winter without help from the federal government. The storm knocked out refineries, ports and oil rigs, driving up already high fuel prices. Heating oil prices are expected to increase by one-third in the Northeast. Federal funding for the Low Income Home Energy Assistance Program must also be increased to ensure that help is available to those who need it.
Maine Sens. Susan Collins and Olympia Snowe are urging the Senate to include nearly $1.3 billion in emergency funding for LIHEAP in the next supplemental appropriations bill. This money would come on top of the program’s regular appropriation, which is still being negotiated by Congress. The extra money is needed to give the program the same buying power it had last year.
The energy appropriations bill that passed the U.S. House included about $2 billion for LIHEAP, while the Senate bill included about $2.2 billion for both regular and emergency LIHEAP funding. About $2 billion was appropriated for the program last year, an inadequate amount for this year given that the Energy Information Administration predicts heating oil to rise up to 33 percent in the Northeast. Natural gas prices in the Midwest are predicted to rise by as much as 77 percent, according to the EIA.
“The current $440 annual LIHEAP benefit won’t even pay for one full tank of heating oil at current prices,” said Rep. Tom Allen who is pushing for a doubling of LIHEAP funding to $4 billion.
Last year, 47,000 Maine households received $24 million in payments. The more people that qualify for the program the smaller the individual payments. The average benefit last year was $480 – not enough to fill an oil tank at today’s prices.
While the emergency appropriation is warranted to deal with this winter’s expected high energy costs, the overall funding for the program must also be increased. If this happens, more of the money will and should go toward paying for air conditioning costs in the southern states in the summer. In addition to helping those dealing with oppressive heat, expanding the program in this way will also build its political support.
Because 19 of every 20 LIHEAP dollars go for heating, not cooling, assistance, the program is not heavily supported by lawmakers in warmer climes. Broadening support should help when it comes time to increase the funding for the program.
Recently, Congress approved more than $62 billion to help pay for relief efforts after Hurricane Katrina. More money is likely to be approved in the coming weeks. It makes sense to include funding for those who will be hardest hit by rising fuel prices caused by the hurricane. It also makes sense to appropriate the money before winter sets in.
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