Source: United States Senator for Rhode Island Jack Reed
90 members of Congress urge HHS to study impacts that Russia’s invasion of Ukraine is having on U.S. energy prices and whether additional LIHEAP aid is needed to offset impacts on working families
WASHINGTON, DC – Today, a group of lawmakers led by U.S. Senators Jack Reed (D-RI), Susan Collins (R-ME), and Assistant Speaker of the U.S. House of Representatives Katherine Clark (D-MA) sent a bipartisan, bicameral letter calling on the U.S. Department of Health and Human Services (HHS) to take additional steps to reduce energy costs in the wake of Vladimir Putin’s illegal war in Ukraine.
The uncertainty caused by Putin’s war caused oil prices to wildly surge, reaching their highest levels ($127.98 per barrel) in 14 years on March 8. Meanwhile, natural gas prices have risen approximately 60 percent higher than this time last year.
As these Russian war-related price spikes cause American consumers to pay more at the pump and to heat their homes, and make household budgeting more difficult and unpredictable, Reed, Collins, Clark and their 87 colleagues who signed the letter are seeking information from HHS about how higher energy prices are affecting the ability of the Low Income Home Energy Assistance Program (LIHEAP) to assist eligible individuals. They want the Biden Administration to assess the program’s current needs and to prepare for next winter.
LIHEAP is a federally funded program that helps low-income households with their home energy bills by providing payment and/or energy crisis assistance to pay for gas, electric, and other methods customers use to heat their homes.
“We greatly appreciate your efforts to alleviate increased home energy costs from pandemic-induced volatility in global energy markets for households this winter through effective administration of the Low-Income Home Energy Assistance Program (LIHEAP), including the pre-emptive release of $3.37 billion in FY22 funding for the program at the beginning of the winter heating season. However, more needs to be done. While we commend President Biden’s leadership in addressing rising fuel costs caused by Russia’s illegal war in Ukraine, we are nonetheless concerned that this war could worsen and prolong the financial impact of high energy prices on American families,” wrote the 90 members of Congress. “LIHEAP plays a critical role in offsetting burdensome heating and cooling costs that strain the budgets of financially vulnerable Americans. But as prices skyrocket because of Russia’s aggression in Europe, states will have to make tough choices about the number of people they serve and the amount of LIHEAP assistance they can provide to each household.”
They continued, “Recognizing this growing need, we respectfully request that you work with the Department of Energy to determine the impacts Russia’s invasion of Ukraine will have on the home energy prices of low-income Americans for the remainder of this fiscal year and next. We also ask that you make recommendations for additional funding for LIHEAP, including supplemental and contingency funding, to minimize the impacts.”
Working with their colleagues on the Appropriations Committee, Senators Reed and Collins successfully included $3.8 billion for LIHEAP in the fiscal year 2022 Consolidated Appropriations Act that was signed into law this week. To proactively assist families during the cold winter months, the Biden Administration has already released $3.37 billion in LIHEAP aid to states. Now that the final bill passed, HHS still has about $425 million in LIHEAP reserves to distribute. Additionally, they successfully included a $500 million-over-five-year investment in LIHEAP in the Infrastructure Investment and Jobs Act.
Nationwide, an estimated 5.3 million households received assistance with heating and cooling costs through LIHEAP in 2020.
Over 26,000 Rhode Island households and nearly 33,000 households Maine households. benefitted from LIHEAP last year, with the average annual LIHEAP benefit covering about $550 in winter home heating costs for Rhode Islanders.
In addition to Reed and Collins, the letter was signed by U.S. Senators Alex Padilla (D-CA), Amy Klobuchar (D-MN), Ben Ray Lujan (D-NM), Bernard Sanders (I-VT), Catherine Cortez Masto (D-NV), Elizabeth Warren (D-MA), Gary C. Peters (D-MI), Jacky Rosen (D-NV), Jeanne Shaheen (D-NH), Michael Bennet (D-CO), Patty Murray (D-WA), Tammy Duckworth (D-IL), Richard Blumenthal (D-CT), Dick Durbin (D-IL), Ron Wyden (D-OR), Sheldon Whitehouse (D-RI), Sherrod Brown (D-OH), and Tina Smith (D-MN).
Full text of the letter follows:
March 17, 2022
Dear Secretary Becerra,
We greatly appreciate your efforts to alleviate increased home energy costs from pandemic-induced volatility in global energy markets for households this winter through effective administration of the Low-Income Home Energy Assistance Program (LIHEAP), including the pre-emptive release of $3.37 billion in FY22 funding for the program at the beginning of the winter heating season. With the enactment of the FY22 Omnibus Appropriations Act, a further $425 million in LIHEAP funding is available and we urge you to expedite the delivery of these funds to the states. However, more needs to be done. While we commend President Biden’s leadership in addressing rising fuel costs caused by Russia’s illegal war in Ukraine, we are nonetheless concerned that this war could worsen and prolong the financial impact of high energy prices on American families.
Americans have already begun to feel the financial impact of Russian President Vladimir Putin’s unprovoked invasion of Ukraine as oil prices surge to their highest level since 2008 and natural gas prices have risen approximately 60 percent higher than this time last year. Prices for deliverable fuels like propane and heating oil have also remained high, and were 40 percent higher in the first week of March than they were at the same point last year. These are troubling signs for the majority of American households that use either natural gas or deliverable fuels to heat their homes. Moreover, should Russia take additional action to further destabilize global energy markets, we fear the subsequent costs on American energy bills will be severe.
LIHEAP plays a critical role in offsetting burdensome heating and cooling costs that strain the budgets of financially vulnerable Americans. Yet, we know that even with the additional funding provided in this year’s funding, LIHEAP cannot meet the demand for assistance. That would be true even if energy prices were stable. But as prices skyrocket because of Russia’s aggression in Europe, states will have to make tough choices about the number of people they serve and the amount of LIHEAP assistance they can provide to each household.
Recognizing this growing need, we respectfully request that you work with the Department of Energy to determine the impacts Russia’s invasion of Ukraine will have on the home energy prices of low-income Americans for the remainder of this fiscal year and next. We also ask that you make recommendations for additional funding for LIHEAP, including supplemental and contingency funding, to minimize the impacts.
Thank you for your consideration and for your vital work for vulnerable families.
Sincerely,