Washington, D.C. – Colorado U.S. Senator Michael Bennet joined U.S. Senators Jack Reed (D-R.I.), Susan Collins (R-Maine), and a group of bipartisan, bicameral lawmakers to urge the U.S. Department of Health and Human Services (HHS) to take additional steps to reduce energy costs in the wake of Putin’s lawless war in Ukraine.
The uncertainty driven in large part by Putin’s war has caused oil prices to surge, reaching their highest levels ($127.98 per barrel) in 14 years on March 8. Meanwhile, natural gas prices have risen approximately 60% in comparison to prices this time last year. As these price spikes cause American consumers to pay more at the gas pump and on their home heating bills, Bennet and his colleagues are seeking information from the Biden Administration about how higher energy prices are affecting the Low Income Home Energy Assistance Program’s (LIHEAP) capacity to assist eligible families. Additionally, the lawmakers are pressing HHS to make recommendations for additional funding for the LIHEAP program to protect families from rising costs.
“We greatly appreciate your efforts to alleviate increased home energy costs from pandemic-induced volatility in global energy markets for households this winter through effective administration of the Low-Income Home Energy Assistance Program (LIHEAP), including the pre-emptive release of $3.37 billion in FY22 funding for the program at the beginning of the winter heating season. However, more needs to be done. While we commend President Biden’s leadership in addressing rising fuel costs caused by Russia’s illegal war in Ukraine, we are nonetheless concerned that this war could worsen and prolong the financial impact of high energy prices on American families,” wrote Bennet and his colleagues. “LIHEAP plays a critical role in offsetting burdensome heating and cooling costs that strain the budgets of financially vulnerable Americans. But as prices skyrocket because of Russia’s aggression in Europe, states will have to make tough choices about the number of people they serve and the amount of LIHEAP assistance they can provide to each household.”
They continued: “Recognizing this growing need, we respectfully request that you work with the Department of Energy to determine the impacts Russia’s invasion of Ukraine will have on the home energy prices of low-income Americans for the remainder of this fiscal year and next. We also ask that you make recommendations for additional funding for LIHEAP, including supplemental and contingency funding, to minimize the impacts.”
LIHEAP is a federally funded program that provides assistance to help low-income households pay their home energy bills. The Fiscal Year 2022 omnibus funding bill that President Joe Biden signed into law earlier this month includes $3.8 billion for LIHEAP to help Coloradans and families across the nation cover energy costs. The bipartisan infrastructure bill also includes a $500 million investment in LIHEAP over the next five years.
Nationwide, an estimated 5.3 million households received assistance with heating and cooling costs through LIHEAP in 2020. Over 76,600 Colorado households benefited from LIHEAP last year. More information on the Colorado Low-income Energy Assistance Program is available here.
In addition to Bennet, Reed, and Collins, the letter was signed by U.S. Senators Alex Padilla (D-Calif.), Amy Klobuchar (D-Minn.), Ben Ray Lujan (D-N.M.), Bernard Sanders (I-Vt.), Catherine Cortez Masto (D-Nev.), Elizabeth Warren (D-Mass.), Gary C. Peters (D-Mich.), Jacky Rosen (D-Nev.), Jeanne Shaheen (D-N.H.), Patty Murray (D-Wash.), Tammy Duckworth (D-Ill.), Richard Blumenthal (D-Conn.), Dick Durbin (D-Ill.), Ron Wyden (D-Ore.), Sheldon Whitehouse (D-R.I.), Sherrod Brown (D-Ohio), and Tina Smith (D-Minn.).
The text of the letter is available HERE and below.
Dear Secretary Becerra,
We greatly appreciate your efforts to alleviate increased home energy costs from pandemic-induced volatility in global energy markets for households this winter through effective administration of the Low-Income Home Energy Assistance Program (LIHEAP), including the pre-emptive release of $3.37 billion in FY22 funding for the program at the beginning of the winter heating season. With the enactment of the FY22 Omnibus Appropriations Act, a further $425 million in LIHEAP funding is available and we urge you to expedite the delivery of these funds to the states. However, more needs to be done. While we commend President Biden’s leadership in addressing rising fuel costs caused by Russia’s illegal war in Ukraine, we are nonetheless concerned that this war could worsen and prolong the financial impact of high energy prices on American families.
Americans have already begun to feel the financial impact of Russian President Vladimir Putin’s unprovoked invasion of Ukraine as oil prices surge to their highest level since 2008 and natural gas prices have risen approximately 60 percent higher than this time last year. Prices for deliverable fuels like propane and heating oil have also remained high, and were 40 percent higher in the first week of March than they were at the same point last year. These are troubling signs for the majority of American households that use either natural gas or deliverable fuels to heat their homes. Moreover, should Russia take additional action to further destabilize global energy markets, we fear the subsequent costs on American energy bills will be severe.
LIHEAP plays a critical role in offsetting burdensome heating and cooling costs that strain the budgets of financially vulnerable Americans. Yet, we know that even with the additional funding provided in this year’s funding, LIHEAP cannot meet the demand for assistance. That would be true even if energy prices were stable. But as prices skyrocket because of Russia’s aggression in Europe, states will have to make tough choices about the number of people they serve and the amount of LIHEAP assistance they can provide to each household.
Recognizing this growing need, we respectfully request that you work with the Department of Energy to determine the impacts Russia’s invasion of Ukraine will have on the home energy prices of low-income Americans for the remainder of this fiscal year and next. We also ask that you make recommendations for additional funding for LIHEAP, including supplemental and contingency funding, to minimize the impacts.
Thank you for your consideration and for your vital work for vulnerable families.
Sincerely,