Funding Cuts For Low Income Heating Programs Following Federal Changes

STAFF REPORT

Early last week, a letter began circulating from the New York State Office of Temporary and Disability Assistance (OTDA) informing heating and cooling contractors that several programs that low-income New Yorkers have relied upon for years will not be available this heating season. Due, in part, to the severe cuts from the Trump administration to the Low Income Home Energy Assistance Program (LIHEAP) at the federal level, the letter indicates that OTDA cannot allocate funds for Weatherization, Heating Equipment Repair and Replacement (HERR), Clean & Tune (C&T), or a 2nd Emergency benefit. The Department of Health and Human Services absorbed the LIHEAP at the federal level after the entire office was gutted during the early days of President Trump’s second administration. It was among the many other federal programs eviscerated amid Elon Musk’s tenure with the “Department of Government Efficiency” (DOGE). The letter from OTDA indicates that the Federal Fiscal Year 2026 State Plan will be revisited if any federal LIHEAP funds become available. “We recognize that these programs have benefited lower-income households in our state,” the letter acknowledges. The HEAP program was facing a shortfall ahead of this heating season, as leftover funds from extra “Covid money” had finally run out. Complicating matters was that HERR responded to a record number of clients in need in the 2023-2024 season.

Last year, the HERR program provided roughly 4500 New Yorkers with heating equipment replacement or repairs to ensure that they stayed warm and safe in the winter months. Although the federal government has indicated that LIHEAP, a program (mostly) popular across the aisle since its inception in 1981, will be funded, no allocations have been designated, and New York State cannot predict what it will or won’t get. All of this led to an imperfect storm, as the instability caused by the changes at the federal level and the financial shortfall led to OTDA having to make a difficult decision. Four proposals were sent to Governor Hochul’s office, and the current plan is the one that was ultimately selected.

OTDA has been in conversation with other NYS offices, such as Homes and Community Renewal (HCR) and Public Assistance, as well as the New York State Energy Research & Development Authority (NYSERDA), to discuss plans for how to assist the influx of New Yorkers who will need help with their heating systems this winter. NYSERDA has indicated it will allocate one million dollars statewide to cover up to $6000 per heating system through its Empower+ program, but only once other options have been exhausted, with the idea that the rest of the funds will come from financing or other sources. For comparison, HERR would cover up to $8,000. No concrete plans have been solidified as of this writing regarding how any of it will work, and talks are ongoing. Regardless of the outcome, with fewer and more complicated options, lower-income New Yorkers will undoubtedly face a challenging heating season this year with the cuts to HEAP and in HERR’s absence.