Energy assistance is critical for families with low incomes

As I type this blog, frigid rain patters against my window, freezing in a thick layer all over my house. Although spring is here, the threat of cold, dangerous weather lingers for a few more weeks and Michigan families will continue to need support in staying comfortable, healthy and safe in their homes. In the upcoming budget year, our elected representatives in Congress can ensure that everyone has a warm, safe home by maximizing support for the federal Low Income Home Energy Assistance Program (LIHEAP).

In 2021, the program aided more than 257,000 Michigan households with utility bill payment assistance and weatherization services. Nearly two-thirds included an older adult, a disabled person, and/or a young child. 

Due to a longstanding funding shortage, however, for every family in the state that receives LIHEAP, there are four income-eligible families that don’t. For each Michigan household below 200% of the federal poverty level (FPL), the yearly home energy bill exceeds what they can afford to pay by $1,405. The gap is even larger in northern communities, where winters are colder and longer and poverty rates tend to be higher.

Michigan’s Largest Home Energy Affordability Gaps, by County

(Households below 200% FPL)

Source: Fisher Sheehan and Colton, Home Energy Affordability Gap 2021

In the coming months, Congress has the opportunity to build on the progress states have made over the last few years with federal COVID-19 relief and recovery funds. These substantial investments have been critical in allowing Michigan to assist more families with energy bill payment and weatherization services that permanently lower bills and make homes healthier and safer.

While the federal government has decided to officially end the COVID-19 public health emergency on May 11, the pandemic isn’t over. Related illness, long-term disability and death still affect families, who may continue to struggle as emergency rental assistance, increased food assistance benefits, guaranteed Medicaid coverage and other pandemic relief measures end. A lack of quality, affordable child care presents a great barrier to employment. Inflation is squeezing household budgets and the public and nonprofit entities that support people facing hardship.

State and local agencies that administer heating assistance in our communities report that more families are seeking help and accumulating larger utility bill arrearages compared to the same time period last year.

Without extra resources, the increased need could worsen the larger affordable housing crisis. Housing—including utilities—is generally considered “affordable” when it consumes no more than 30% of a family’s income. The families with the lowest incomes, however, must spend more than that on energy bills alone. This leaves very little money for other survival needs like rent, food and medicine, and tenants can be evicted if their utilities are shut off.

Energy and housing challenges disproportionately affect families affected by systemic racism. Due to historical and ongoing discrimination that keeps families of color in poverty and pushes them into low-quality, energy-inefficient housing, they must spend a larger share of their income on energy than white families. Funds for LIHEAP are critical to filling in the gaps as we push for long-term and inclusive systems change.

We should view adequate investment in survival needs like utility service as a basic element of a functioning society, not a tool kept behind glass to be broken out only in case of an emergency. Now is not the time to roll back the capacity of programs like LIHEAP to ensure that families our economy leaves behind have what they need to thrive.

Instead, let’s continue to build a better future for all Michiganders. Tell your officials in Congress to support health, home energy security, and housing stability with robust, flexible funding for LIHEAP. These resources from the Coalition to Keep Michigan Warm and the National Energy and Utility Affordability Coalition can help you in your advocacy to ensure that our families, friends and neighbors stay warm and safe.