With rising home energy prices, LIHEAP’s thermal benefits may be insufficient this winter
Nearly 5 million American households receive heating assistance through the Low Income Home Energy Assistance Program. But this winter, these households could struggle to pay their heating bills and risk falling behind on their utility bills.
U.S. households are expected to spend an average of $1,030 to heat their homes this winter, an increase of $82 from last winter, according to the National Energy Assistance Director Association. NEADA released its first winter heating projections in mid-September and revised its fuel oil cost estimate at the end of September. The $1,030 figure comes from the initial projection.
The average heating benefit received by households in fiscal year 2025 was $467, according to the latest LIHEAP data.
If average benefits are about the same as in 2025, families may have to figure out how to cover more than $500 in additional heating costs.
NEADA is urging Congress to increase funding for LIHEAP from $4 billion to $7 billion to help families manage rising home energy costs.
Higher heating and electricity bills could leave families with less money for food, housing, transportation and other necessities, according to NEADA.
“This is a warning that too many families are heading into winter without any wiggle room in their budgets,” said Mark Wolfe, executive director of NEADA.
The expected increase in costs comes as crude oil continues to trade above $100 a barrel as the Middle East conflict continues to disrupt global oil supplies. Households that rely primarily on heating oil will see the biggest increase, with costs expected to rise by 50% due to the war in Iran.
Share of households benefiting from LIHEAP heating services
About 14% of New York households received LIHEAP heating benefits in fiscal year 2025, more than any other state, according to an analysis by the Get the Facts Data team.
Vermont and Michigan each have nearly 8% of their households enrolled in the program.
The average benefit per household varies by state. Each year, all states and territories submit applications to receive funds, and states decide how to distribute the funds.
Alaska’s average household thermal benefit was $1,554, the highest among the states. New Hampshire’s average benefit was the second highest at $1,045. New Hampshire households rely primarily on heating oil to heat their homes.
Households in the Northeast are expected to spend nearly $2,627 on heating oil from mid-November to mid-March this winter. That could leave families scrambling to cover more than $1,000 after receiving heating assistance.
“Winter is almost here and families have very little time to prepare,” Wolfe said.
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