Adding Funding to the House Climate Bill for Low-Income Home Energy Assistance Would Help Poor Families Facing Particularly Large Increases in Energy Costs — Center on Budget and Policy Priorities

On June 26, 2009, the House of Representatives approved the American Clean Energy and Security Act of 2009 (H.R. 2454). This legislation, which would place a cap on emissions of greenhouse gases to combat global warming, includes important provisions to ensure it does not make large numbers of low-income families worse off. These provisions would fully offset the loss of purchasing power that low-income households as a group would face. [1] These provisions are important and well designed. Nevertheless, the legislation could take additional steps to protect those low-income households, such as people living in older, very poorly insulated homes, whose energy costs will increase by significantly more than the amount of the relief they would receive. That could be accomplished by dedicating a small share of revenue the legislation could raise — such as 1 percent of the permit value — to increase the funding for the Low-Income Home Energy Assistance Program (LIHEAP). LIHEAP is a federal program that provides financial assistance to help low-income households heat and/or cool their homes. A portion of LIHEAP funding also can be used to weatherize low-income households’ residences. Adding Funding to the House Climate Bill for Low-Income Home Energy Assistance Would Help Poor Families Facing Particularly Large Increases in Energy Costs — Center on Budget and Policy Priorities Shared via AddThis