Failed a procedural vote which required a 60-vote supermajority for passage: 07.26.08
The Legislation:
The Warm in Winter and Cool in Summer Act of 2008 appropriates an additional $2.5 billion in supplemental funds to the Low-Income Home Energy Assistance program (LIHEAP), which provides heating and cooling assistance to low-income households. Each state defines eligibility for the program based on a federally determined maximum income. The supplemental funds would bring the total appropriation for Fiscal Year 2008 to its authorized level of approximately $5 billion. In 2007, 5.8 million households received LIHEAP heating assistance.
The legislation appropriates half of the funds to the block grant portion of the program, which provides formula grants to states based on need. The bill appropriates the other half to emergency contingency funds that can be released by the president if there are rapid increases in home energy prices, high unemployment rates, or other economic changes.
The Middle-Class Position:
Middle Class Supports. Winter home heating prices have increased almost 80% since 2001. As prices continue to rise, more and more aspiring middle-class Americans are struggling to heat their homes in the winter and cool them in the summer. The Low-Income Home Energy Assistance program is critical to helping lower income Americans who use a disproportionately large amount of their household income on energy costs cope with rising home heating. According to the National Energy Assistance Director’s Association, the majority of these households have at least one member who is elderly, disabled, or a child under five. While the number of households receiving assistance has increased along with rising energy costs in recent years, the average LIHEAP grant has declined from $349 to $305 per household. The additional appropriations made in the Warm in Winter and Cool in Summer Act will help prevent states from reducing the number of grants they issue or cutting the amount of each grant. This supplemental appropriation is critical to ensuring that rising energy prices do not continue to eat up the budgets of aspiring middle-class Americans.
LIHEAP funds can also serve as an economic stimulus in a weak economy. The program can help low-income households avoid cutting back their spending on other goods in order to afford home energy costs. In this way, necessary consumer spending can be maintained, helping to jumpstart an economy suffering from reduced spending.
From the Experts:
"[Older Americans] often skimp on other necessities in order to pay their utility bills. However, today’s escalating energy prices and the nation’s unpredictable and extreme temperatures are adding to the growing economic hardships faced by seniors. LIHEAP is underfunded and unable to meet the energy assistance needs of the program’s eligible households. Studies show that while LIHEAP serves more households than ever before, only 16 percent of eligible households received assistance in 2006. An estimated gap of almost $28 billion now exists between what LIHEAP pays and the total energy costs facing the eligible LIHEAP population... This legislation will provide needed relief for many older citizens who may not receive assistance – despite their eligibility -- due to a lack of funding. – David Sloan, Senior Vice President, Government Relations and Advocacy, AARP, 7/9/2008
“There is no substitute for adequate federal funding of LIHEAP…$5.1 billion would provide sufficient funds to increase grant levels to adjust for inflation in energy prices and allow states to reach out to eligible households who are not currently receiving assistance.” – Mark Wolfe Executive Director, National Energy Assistance Directors’ Association, 1/17/2008
Beyond this Bill:
As Congress debates measures to reduce energy prices that would have little short-term or even long-term benefit, the Senate has failed to pass a bill that would provide concrete assistance to aspiring middle-class Americans struggling to make ends meet. Congress should focus less on political expedience and more on providing adequate funding for programs like LIHEAP that are proven to help cash-strapped Americans.
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