End Energy Hardship Act
- Sponsor
- Rep. Tonko, Paul [D-NY-20]
- Committees
- Energy and Commerce Committee (primary)
- Last action
- Sep 16, 2026
Bottom line
This bill aims to alleviate residential energy debt and establish long-term energy affordability programs by providing substantial federal funding to utility service providers and mandating income-based payment plans.
What it actually does
This bill establishes a Utility Affordability Program within the Department of Energy to address residential energy hardship. Phase 1 provides competitive grants to electric and natural gas utilities to eliminate residential customer arrears, prioritizing older debts and low-income households. In exchange, utilities must implement a Qualified Percentage of Income Payment Program (PIPP) or an equivalent energy affordability program for at least five years and cease disconnections for covered arrears. Phase 2 distributes any remaining funds as equal credits to all residential customers. The bill also authorizes funding for technical assistance, PIPP implementation support, and mandates annual data collection and public reporting on energy affordability metrics by the Energy Information Administration.
Proponents argue
Proponents would argue that the bill directly addresses the growing crisis of energy poverty and household debt, preventing disconnections and ensuring access to essential utility services for vulnerable populations. They would highlight the long-term benefits of PIPP programs in stabilizing household budgets and reducing future arrears, while also promoting energy efficiency and providing crucial data for future policy.
Opponents contend
Opponents might argue that the bill represents a significant federal overreach into state utility regulation and could create moral hazard by socializing utility debt, potentially encouraging future non-payment. They might also raise concerns about the substantial cost to taxpayers, the administrative burden on utilities, and the potential for program abuse without addressing underlying energy cost drivers.
The bill is relatively short and clearly structured, making it accessible for a reader to understand its core provisions within a reasonable timeframe.
Section 2(a)
Establishment of Utility Affordability Program
This subsection establishes a new program under the Secretary of Energy to improve both immediate and sustained affordability of electric and natural gas services for residential customers. It sets the stage for the subsequent phases of funding and support, outlining the overarching goal of the legislation.
Supporters argue
Supporters would argue this foundational provision is crucial for addressing energy hardship nationwide by creating a dedicated federal mechanism to coordinate and fund affordability initiatives.
Critics contend
Critics might argue that establishing such a program could lead to federal interference in state-regulated utility markets, potentially disrupting existing regulatory frameworks.
Tradeoffs
Balances the perceived need for federal intervention to address a national issue with traditional state regulatory authority over utilities.
Section 2(b)
Phase 1: Funding for Arrears Elimination
Within 12 months of enactment, the Secretary of Energy must provide competitive funding to eligible utilities. This funding, capped at the total residential customer arrears, is exclusively for eliminating those arrears. Prioritization is given to older debts, low-income households (below 150% FPL or 60% state median income), and households with vulnerable members (elderly, disabled, young children, or those with medical conditions requiring service).
Section 2(b)(4)(A)
Mandatory Percentage of Income Payment Program (PIPP) Implementation
Utilities receiving Phase 1 funding must implement a Qualified Percentage of Income Payment Program (PIPP) or an equivalent energy affordability program for at least 60 consecutive months (five years), starting within 12 months of receiving funds. These programs are designed to cap monthly energy bills as a percentage of household income for eligible low-income customers.
Section 2(b)(4)(C)
Halt on Collections and Disconnections for Covered Arrears
Utilities receiving Phase 1 funding must immediately stop issuing late fees or penalties, cease all arrears collection activities (including selling debt to third parties), and halt service disconnections for residential customers whose arrears are expected to be eliminated by the federal funding.
Section 2(c)
Phase 2: Distribution of Remaining Funds as Customer Credits
Not earlier than 24 months after enactment, any funds appropriated for the program that were not used in Phase 1 will be distributed to eligible utilities that received Phase 1 funding. These funds must then be used to provide an equal credit to every residential customer served by that utility.
Section 2(f)
Mandated Data Collection and Public Reporting
Starting 12 months after enactment, the Energy Information Administration (EIA) must annually collect data from utilities on arrears (disaggregated by age), disconnections, and PIPP enrollment. EIA must then publish an annual report with these metrics, disaggregated by State and ZIP Code.
Section 2(i)
Funding Authorization
Authorizes $25 billion for Phases 1 and 2 (arrears elimination and customer credits), to remain available until expended. Additionally, it authorizes $1 billion annually for fiscal years 2027 through 2031 (totaling $5 billion) for technical assistance, PIPP implementation support, and data collection/reporting.
Defines a 'Qualified Percentage of Income Payment Program' (PIPP) as a program that enrolls residential customers with gross household incomes at or below 150% FPL or 60% state median income, automatically enrolls participants in other low-income programs, limits monthly charges to a fixed percentage of income (not more than 6% total, or 3% for electric and 3% for gas if separate), allows for tiered charges, requires coordination with state agencies/nonprofits for data sharing and enrollment, promotes access to energy efficiency programs, prohibits service disconnection for enrolled customers making timely payments, and implements an arrears management program that forgives 1/12 of arrears upon each timely monthly payment.
Section 2(j)(5)
Why it matters:It is standard legislative practice to define terms comprehensively in a dedicated section, but the level of detail here makes it highly consequential for the program's actual functioning.
Case for: Proponents would argue that these specific requirements ensure PIPPs are robust, equitable, and effectively serve the most vulnerable, preventing future debt cycles and promoting energy efficiency through integrated services.
Case against: Opponents might argue that the prescriptive nature of the definition could limit flexibility for utilities or states to design programs best suited to local conditions, or that the specific income cap percentages are arbitrary and may not fit all regions.
Estimated impact: This definition dictates the operational structure and consumer benefits of the primary long-term affordability mechanism, affecting potentially millions of low-income households and all participating utilities for at least five years.
An eligible entity receiving Phase 1 funding may not collect revenue from its ratepayers to cover the costs of arrears that are expected to be eliminated by the federal funding.
Section 2(b)(4)(D)
Why it matters:It is standard practice to include such a clause to prevent entities from benefiting twice from federal funds, but its placement might obscure its significance for ratepayers.
Case for: Proponents would argue this is a critical consumer protection, ensuring that federal funds truly relieve the burden on ratepayers and prevent utilities from using the program to subsidize their operations by recovering costs from both federal funds and ratepayers.
Case against: No specific opposition is typically raised against preventing double recovery, as it is a widely accepted principle of financial oversight and consumer protection.
Estimated impact: Prevents utilities from passing on the costs of forgiven arrears to other ratepayers, potentially saving non-arrears customers from future rate increases that might otherwise occur to cover bad debt.