Fears of heat-rationing for millions in US as shutdown delays energy aid | US news
Millions of Americans will have to ration heat this winter as the U.S. federal government shutdown and mass layoffs by the Trump administration cause unprecedented delays in receiving energy assistance aid for low-income households, a group that helps people pay their energy bills has warned.
Congress approved nearly $4 billion for the Low-Income Home Energy Assistance Program (Liheap) after Trump’s proposal to cancel the life-saving heating and cooling plan in this year’s budget ultimately failed.
But with winter fast approaching, MPs were unable to reach a funding agreement and funding remained on hold; This threatens to soar electricity and gas bills, leaving the most vulnerable families without critical energy assistance.
“No family should be forced to choose between heat and food because of a federal funding delay,” said Mark Wolfe, executive director of the National Energy Assistance Directors Association (NEADA), which represents Liheap’s state managers.
“If the money is not released soon, it will cause real harm and people will suffer.”
Liheap is a chronically underfunded bipartisan program that helped nearly 6 million households tackle their energy bills last year, reaching just 17% of those who qualified for aid even before the current chaos.
Due to the seasonal nature of the program, previous administrations had generally allowed 90% of Liheap funds to be distributed by the end of October; Meanwhile, MPs were discussing the annual appropriations bill.
This year is different, thanks to Trump’s “government efficiency department,” or Doge.
Even if the continuing resolution or short-term spending fix were to be adopted this week, states and tribes likely would not receive funds until early December at the earliest due to unprecedented staffing shortages.
Earlier this year, the entire staff running the decades-old bipartisan program was laid off as part of the Trump administration’s so-called “efficiency” drive overseen by billionaire Republican donor Elon Musk.
That left no technical staff to administer the funding formula that determines how much each state and tribe will receive and to approve states’ plans for how to allocate the money to households. The Guardian understands that the Department of Health and Human Services (HHS), led by Robert F Kennedy Jr, has been using outside paid consultants and staff from other programs, some of whom were laid off earlier this month.
Although there is no indication that the government shutdown will end anytime soon, NEADA is calling on utilities to immediately suspend disconnections for past-due bills until the federal chaos is resolved and Liheap funds are released.
“Utilities must act in the public interest and pause cuts until federal aid is restored,” Wolfe said.
In the first eight months of this year, New York’s monopoly energy provider alone disconnected 111,000 households. The national total for shutdowns is expected to reach 4 million in 2025, up from 3 million in 2023, according to an analysis of data reported by utility providers.
Trump declared a national energy emergency on his first day in office, promising to increase fossil fuel production and cut regulations to lower consumer energy bills.
Last year, electric bills rose more than 15% in 10 states as well as the District of Columbia; The largest increases were in Illinois (28%), Indiana (25%) and J.D. Vance’s home state of Ohio (23%). The price increase is mostly due to the rising cost of fossil gas, utilities passing on the costs of investment in transmission and distribution systems to consumers, and the rapid uncontrolled growth of data centers that increases demand for electricity.
According to NEADA research, the cost of home heating this winter is expected to increase by an average of 7.6%, from $907 last winter to an estimated $976 this year.
Approximately 21 million households (one in six) are currently unable to pay their energy bills. Household energy debts increased by more than 30% to $23 billion as of June 2025, from $17.5 billion in December 2023.
The health department has been contacted for comment.
