The LIHEAP Program

• LIHEAP is designed to assist the most deserving of low-income households with their energy bills. Most LIHEAP funds are distributed during winter months to help people with heating bills. Aside from the block-grant component of LIHEAP, which comprises the bulk of the program, the REACH program supplements local municipalities with the greatest needs for energy assistance for their citizens. The Leveraged Incentive Program is another supplemental program designed for states that contribute non-federal funds to the LIHEAP fund pool. Contingency funds also can be authorized by the President in emergencies, which was done in 2010 to the tune of $200 million.
  
  

Income Level Guidelines

• The federal government established two sets of income guidelines that are used in determining eligibility requirements. States may use these federal thresholds or establish their own income limits, as long as those limits are higher than federal guidelines. LIHEAP statutes establish a maximum income level of 150 percent of the federal poverty level (FPL). Because of funding issues and the federal budget fight in Congress in early 2011, FPL figures are for 2010, not 2011, since LIHEAP was funded through a continuing resolution. For a family of four, for example, the FPL for the 48 contiguous states and the District of Columbia is $22,050 (amounts for Alaska and Hawaii are higher). FPL figures for 2011 will be used when a 2011 fiscal budget is established. Using LIHEAP guidelines, 150 percent of the $22,050 FPL is $33,075. States use a criterion of 60 percent of state median income if that figure is higher than the 150 percent FPL amount. Every state in the union has higher median incomes for a family of four than the $33,075 threshold determined by the FPL, so eligibility would be determined by using these figures. For instance, the 60-percent-of-state-median-income-level for an Arkansas family of four would be just above the FPL level -- $33,957. However, some states have median state income levels, even at 60 percent, nearly twice the FPL figures. Connecticut, Maryland and New Jersey each has a 60 percent median income level for a family of four that's more than $60,000, which would qualify these households for LIHEAP assistance.
  
  

Things LIHEAP Doesn't Do

• In most states, LIHEAP programs do not pay your heating bill on a monthly basis, but rather pay the utility company directly, normally two or three times a year. Only heating bills are paid -- not air conditioning bills (except in rare cases of seniors with medical conditions), water bills or other utilities. Home repairs are not covered, even in severe cases in which housing flaws cause heat loss, unless a state has a weatherization program. Propane bills are paid only if propane is the main energy source for heating your home.
  
  

How to Apply

• The application process, and eligibility requirements, will vary among states. Michigan, for example, uses LIHEAP money to fund a home-heating credit program, the State Emergency Relief (SER) fund, and the Weatherization Assistance Program (WAP). Michigan eligibility requirements are based on a demonstrable, immediate need (shut-off notice); or a declared need for deliverable fuel, like gas or oil; or a verified need for energy-related home repair; along with income and asset criteria. LIHEAP provides a national directory of state LIHEAP offices that you can contact for eligibility criteria and application information.