In order to help low-income families fill their oil tanks before the arrival of cold winter weather, U.S. Senator Susan Collins today sent a letter to Jim Nussle, Director of the Office of Management and Budget, requesting the release of $151.5 million that remains in the Low Income Home Energy Assistance Program (LIHEAP) contingency fund.
“The end of summer, and the eventual arrival of cold winter weather, will result in an increased demand for heating oil. It is likely that this demand will cause prices to rise as well. The immediate release of these funds will help our neediest citizens fill their oil tanks now, and will be a more efficient use of these funds.”
Each year, 4.5 million low-income families, including about 46,450 households in Maine, rely on LIHEAP to assist with the costs of heating their homes. LIHEAP is a federal block grant program that provides states with annual funding to operate home energy assistance programs for low-income households. In addition to helping to pay energy bills for low-income families and the elderly, LIHEAP helps to fund energy crisis intervention programs, low-cost residential weatherization and other energy-related home repairs.
The following is Senator Collins’ full letter to Director Nussle.
The Honorable Jim Nussle
Director
Office of Management and Budget
Old Executive Office Building
Washington, DC 20503
Dear Director Nussle,
Congratulations on your recent confirmation as Director of the Office of Management and Budget. Given the depth of budgetary challenges facing this nation, it has never been more important to have an individual as qualified and accomplished as yourself leading the office.
I am writing to ask you to release the remaining $151.5 million in the Low Income Home Energy Assistance Program (LIHEAP) contingency fund. If the Administration fails to release the remaining funding, $131 million of that balance will expire on September 30.
In Maine, we frequently get our first snowfall in October. Temperatures are already dropping into the thirties in parts of the state and frosts as early as late August are common in Northern Maine. One of the most important ways to help people get through Maine's winters is to start making assistance available prior to the arrival of cold weather.
In the 2006 -2007 heating season, Maine’s LIHEAP program provided support to more than 46,000 households. Maine experienced a record high number of service shut-offs, and the average household heating costs rose $400 per customer. This all means that Maine’s low-income households are facing a severe hardship catching up from last winter’s heating bills, coping with impending and actual shutoff of service, and preparing for the 2007 – 2008 winter season. The LIHEAP funds could be used to allow our most vulnerable citizens to have at least some heating oil in their tanks prior to the arrival of cold temperatures. Since heating oil prices frequently rise with the arrival of cold, releasing these funds now would not only provide the most benefit for our neediest citizens, but would also be a more efficient use of funds.
I ask that you release the remaining LIHEAP funds in order to help low-income families fill their tanks with home heating oil before the arrival of fall and cold weather. I believe that this funding would not only be extremely important to help our most vulnerable citizens address high energy prices and cold weather this fall and winter, but would also provide for a more efficient use of funds. In contrast, if we allow these funds to expire, we will have lost an opportunity to help struggling citizens during this difficult period of high energy prices.
LIHEAP is especially critical as the Nation struggles with an explosion in energy prices. For low income families and people on fixed incomes, it can be extremely difficult to meet rising energy prices. Too many Maine families are literally forced to choose between buying groceries or heating their home.
Thank you for your consideration.
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