LIHEAP Act
- Sponsor
- Rep. Pappas, Chris [D-NH-1]
- Committees
- Education and Workforce Committee (primary)
- Last action
- Sep 24, 2026
Bottom line
For fiscal year 2027, this bill alters how states determine household income eligibility for federal low-income energy assistance, potentially shifting who qualifies for aid.
What it actually does
This bill modifies the Low-Income Home Energy Assistance Program (LIHEAP) eligibility criteria for fiscal year 2027. It changes the household income threshold for receiving LIHEAP grants from the current 'greater of 150% of the poverty line or 60% of the State median income' to a single standard of 'not exceed 75 percent of the State median income.' This change could expand or contract eligibility depending on the specific economic conditions and existing LIHEAP thresholds in each state.
Proponents argue
Supporters argue that this bill aims to simplify and potentially expand access to critical energy assistance for low-income households, particularly in states where the 75% State median income threshold would allow more families to qualify. They contend that standardizing the eligibility criteria could streamline program administration and better reflect current economic realities, especially in the face of rising energy costs, ensuring more vulnerable populations receive help.
Opponents contend
Critics might argue that by replacing the 'greater of' clause with a fixed 75% State median income threshold, the bill could inadvertently reduce eligibility for some low-income households, particularly in states where 150% of the poverty line currently offers a higher threshold. They may also contend that a one-size-fits-all approach might not adequately address the diverse economic landscapes and cost-of-living variations across different states, potentially leaving some vulnerable families without assistance.
The bill text is extremely short and can be read in under two minutes, but understanding its full implications requires knowledge of existing LIHEAP law and state-specific economic data.
Section 2. LIHEAP Household Income Eligibility.
Temporary Change to LIHEAP Income Eligibility Threshold
For fiscal year 2027 only, this provision changes the way states determine which households are eligible for federal Low-Income Home Energy Assistance Program (LIHEAP) funds. Instead of allowing states to use either 150% of the federal poverty line or 60% of the state median income (whichever is higher), the bill mandates a single eligibility ceiling: household income must not exceed 75% of the state median income. This is a temporary change, applying only for FY2027.
Supporters argue
Supporters argue that by setting a clear 75% State median income threshold, the bill simplifies the eligibility process and could expand assistance to more families struggling with energy costs, especially those who might be just above the current poverty line but still face significant financial hardship. They believe this adjustment is a pragmatic response to ongoing inflation and high energy prices.
Critics contend
Critics might contend that this change, while seemingly straightforward, could inadvertently exclude some of the poorest households in states where 150% of the poverty line is a higher threshold than 75% of the State median income. They argue that removing the flexibility for states to choose the higher of two thresholds could lead to a net reduction in eligible households in certain regions, undermining the program's goal.
Tradeoffs
The bill attempts to balance simplification of eligibility rules with ensuring broad access to assistance. The tension lies in whether a single, higher State median income percentage universally expands access or if it creates new exclusions for some of the most vulnerable populations, depending on the specific economic context of each state.