White House Unlocks $13.5B To Help Americans Pay Higher Heat Bills

ACROSS AMERICA — The White House on Wednesday announced $13.5 billion in energy assistance, including $4.5 billion to help Americans pay higher heating bills this winter and weatherize their homes.

The nearly half of the U.S. population using natural gas to heat their homes could see costs as much as 28 percent higher, according to a recent analysis from the U.S. Energy Information Administration, an independent agency within the U.S. Department of Energy.

According to the agency’s projections, heating oil costs will be about 27 percent higher, electricity will cost about 10 percent more, and propane costs will be about 5 percent more.

The U.S. Department of Health and Human Services set aside $4.5 billion in assistance under the Low-Income Home Energy Assistance Program, or LIHEAP, which over the last year has helped more than 5.3 million U.S. households with heating, cooling and weatherization, according to the White House.

Vice President Kamala Harris said Wednesday at a union hall in Boston, where she was campaigning for Massachusetts Democrats, that one of the best ways Americans can reduce their energy bills is by making their homes more efficient.

“But here’s the challenge for many homeowners — many folks who are here today — you know that energy efficiency upgrades are expensive,” she said. “And even though we know it can save you thousands of dollars in the long run, the upfront cost is often too high for so many families to be able to afford.”

Besides covering home heating costs and unpaid utility bills the winter, the Department of Energy unlocked $9 billion in funding authorized in the Inflation Reduction Act to help up to 1.6 million households nationwide upgrade their homes to lower their energy bills

Two rebate programs will be offered.

One provides funding to upgrade homes and apartments to lower energy bills through the installation of up to 500,000 heat pumps in “deep building retrofits” that include insulation and wiring upgrades. The other provides for the purchase of highly efficient and electric and home appliances.

“In addition to lowering costs, energy-efficient and electric building and appliance upgrades can reduce indoor and local outdoor air pollution, improving health in our communities,” the White House said. “In addition, they will cut millions of tons of greenhouse gas emissions every year to help tackle climate change.”

• Related: Sharp Increases In Winter Heating Costs Cause Worry, Anxiety To Spike

The surge in home heating costs comes on top of stubborn inflation that is raising the price of almost everything. Inflation rates accelerated last month with consumer prices, excluding the volatile food and energy sectors, growing 6.6 percent, the fastest such pace in four decades.

Overall, the September Consumer Price Index was up 8.2 percent from the year prior.

The projected spike in winter’s heating bills — the highest in more than a decade, according to the National Energy Assistance Directors Association — is the result of converging factors.

Global energy consumption has rebounded from the early days of the pandemic, and supply was barely keeping pace before the war in Ukraine further reduced supplies.

The announcement of heating assistance comes in the waning days before Tuesday's elections that will determine which party controls Congress. Democrats are trying to contrast their efforts to help middle and low-income people through the $1 trillion infrastructure law and other legislative measures with Republican suggestions they would use the debt limit as leverage for cuts to Social Security and Medicare benefits and other federal programs.

“As heating costs increase, it is more important than ever to help families struggling to make ends meet,” said Health and Human Services Secretary Xavier Becerra.

The Associated Press contributed reporting.