Date: December 18, 1995
For Immediate Release
Contact: Michael Kharfen, ACF, (202) 401-9215

HHS Releases Home Energy Funds to Keep
People Warm for the Winter

President Clinton and HHS Secretary Donna E. Shalala announced today that HHS is releasing an additional $578 million in Low Income Home Energy Assistance Program (LIHEAP) funds for states, territories and Indian tribes for the winter. The amount be ing released now is in addition to $232 million in funding previously made available under Continuing Resolutions, making a total of $810 million available for states to carry out their winter programs.

"LIHEAP is a vital lifeline for low income families, senior citizens and persons with disabilities to stay safely in their own homes," said the President. "Without this essential support, many would be in danger or homeless."

Secretary Shalala noted that the budget impasse has made this year difficult for states because no HHS appropriation bill has yet been enacted. States normally draw the majority of their LIHEAP funds during the first half of the fiscal year. But th is year, Continuing Resolutions had enabled HHS to release only a portion of the yearly funds, thus hindering states in their ability to help families. In addition, the House of Representatives voted to eliminate LIHEAP while the Senate maintained the program, creating uncertainty as to total funding.

The new release of additional funding allows states to fully implement their winter heating programs. The Clinton Administration determined that HHS could allocate 81% of the $1 billion provided by advance appropriation under the FY 1995 appropria tion. This amount is consistent with the portion of total yearly LIHEAP spending which has been provided to states during the first six months in prior fiscal years.

"With this action, President Clinton is ensuring that millions of homes with children and senior citizens will be warm this winter," said Secretary Shalala. "I commend the more than a hundred members of Congress who also recognized the critical nee d for LIHEAP."

LIHEAP provides funds to help eligible families with fuel costs and weatherization to insulate homes. States determine eligibility and benefit levels. In 1994, within the more than 5.6 million households that received benefits, 1.6 million include d senior citizens, 1.1 million had a person with disabilities and 2.8 million were home to children under 18. States report that 70% of the households had incomes below $8,000 a year.

Following are the additional amounts being made available:

Note: Additional amounts are made available to Indian tribes and territories. A separate $32.5 million is set aside as a leverage program to reward states that identify other funds to support the basic program.

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