Study Traces History of Legislation to Help Low-Income Households Pay for Energy

Strategic Insights -

As the cost of energy rises, low-income households face a daunting challenge: affording utility bills. A new study from the University of Kansas sheds light on the history of legislation aimed at assisting these households and highlights the need for energy and poverty law to work together to address energy insecurity. The study, led by Uma Outka, William R. Scott Professor of Law at KU, examines the origins of the Low Income Home Energy Assistance Program (LIHEAP) and its shortcomings in providing relief to eligible households.

Key Takeaways:

  • The Low Income Home Energy Assistance Program (LIHEAP) was established by Congress in 1981 and has been the centerpiece of federal low-income energy policy for four decades.
  • Despite its 40-year history, LIHEAP has only reached roughly 16% of eligible households over time, with some states reaching as low as 7% and others up to 30%.
  • In Kansas, only about one-fifth of eligible households receive help with energy bills through LIHEAP.
  • Energy insecurity disproportionately affects Black, Latino, and Native households, as well as households with high numbers of children, seniors, and individuals with disabilities.
  • Research has shown that energy insecurity leads to economic hardship, with many households seeking high-interest, short-term payday loans to afford energy bills.
  • Uma Outka argues that energy law should focus on energy insecurity specifically, rather than treating it as a secondary issue within poverty law.
  • States that have been successful in assisting low-income households address energy insecurity could provide valuable case studies for future research.

Statistics:

  • 16%: The percentage of eligible households that have received help with energy bills through LIHEAP over time.
  • 40 years: The amount of time that LIHEAP has been in operation.
  • 2026: The year in which President Joe Biden's latest budget proposal would eliminate LIHEAP funding, as attempted by President Donald Trump's 2020 budget proposal.
  • 25-30%: The percentage of eligible households in some states that have received help with energy bills through LIHEAP.
  • $600-$800: The average monthly energy bill paid by low-income households in the United States.

Sources:

  • Uma Outka. "Energy Insecurity and Energy Law: Why Energy and Poverty Law Should Work Together." Environmental Law, May 2023.
  • Low Income Home Energy Assistance Program (LIHEAP) press release, August 13, 2023.