New Energy Relief Bill Mandates 2-Year Shutoff Protection and Simplifies Aid for Millions

The aptly named Heating and Cooling Relief Act is a massive overhaul of the federal Low-Income Home Energy Assistance Program (LIHEAP)—now officially shortened to the Home Energy Assistance Program (HEAP) (Sec. 10). The bill’s core action is removing the funding cap on HEAP, effectively authorizing Congress to spend “such sums as may be necessary” to ensure every eligible household gets help (Sec. 3). This is a big deal because the existing program only reached about 18% of eligible families last year, even as utility debt soared past $21 billion nationwide (Sec. 2).

Who Qualifies Now? Your Eligibility Just Got Easier

This legislation drastically simplifies who can get help and how they prove it. First, the income limit is raised: states must now use the higher of 250% of the federal poverty line or 80% of the State Median Income (Sec. 6). For a family of four, this could mean hundreds or even thousands of dollars more in annual income is allowed while still qualifying for aid. Crucially, states are now mandated to give assistance if you meet the criteria, and they are explicitly prohibited from denying eligibility based on citizenship status (Sec. 6).

If you’re already enrolled in programs like SNAP, Medicaid, or SSI, the bill requires states to try and use data sharing to verify your HEAP eligibility automatically, cutting down on paperwork and long waits (Sec. 6). If automatic verification isn't possible, you can simply self-attest (tell them) that you meet the income requirements while your application is processed. This is aimed squarely at the busy parent or worker who doesn't have time to chase down endless documents.

The Utility Company’s New Rules: Say Goodbye to Shutoffs and Late Fees

For most people struggling with high bills, the biggest stressor is the threat of losing power or heat. This bill tackles that head-on by imposing strict, non-negotiable rules on any energy supplier that accepts HEAP funds for a customer (Sec. 7). If your utility receives a HEAP payment on your behalf, they must immediately refund any late fees charged to your account in the preceding six months and the six months following the payment.

Even more impactful: the utility is prohibited from shutting off your service for two full years starting from the date you received the assistance (Sec. 7). This provision offers an unprecedented level of stability for families struggling with energy poverty. Furthermore, the bill requires the federal government to issue guidance on how states can use HEAP funds to pay off existing utility debt (arrears), and it explicitly forbids utility companies from trying to recover those costs by raising rates on other customers (Sec. 9).

The Climate Change Upgrade: Retrofitting Your Home for the Future

Recognizing that climate change is driving up energy costs through extreme heat and cold (Sec. 2), the bill significantly boosts the amount of HEAP funding states can use for weatherization—up from 15% to 25% of their allocation (Sec. 8). But this isn't just about plugging leaks; it mandates that a larger portion of this money must be used to move homes away from fossil fuels. States must prioritize replacing old, inefficient furnaces with electric heat pumps and helping low-income households access community solar programs (Sec. 8).

This means that for eligible homeowners or renters, the aid could go beyond paying a bill; it could result in a fully upgraded, energy-efficient home that is cheaper to cool in the summer and heat in the winter. The bill also establishes new “just transition grants” to help states retrofit low-income housing specifically for climate resilience, ensuring homes can handle rising temperatures and extreme weather events (Sec. 11). This is a smart move that tackles the root cause of high bills, rather than just treating the symptom. States are also required to develop action plans for helping households cover cooling costs and reducing heat-related health risks during extreme heat periods (Sec. 7).