New 'Keep the Heat On Act' Guarantees LIHEAP Funding During 2026 Government Shutdowns

The “Keep the Heat On Act of 2025” has one very specific, very practical goal: making sure low-income households don't lose their energy assistance just because Washington can’t get its act together. This bill mandates that if the federal government shuts down at any point during fiscal year 2026, the Low-Income Home Energy Assistance Program (LIHEAP) keeps running.

The Shutdown Safety Net

Think of this as a financial fire extinguisher for the social safety net. If Congress fails to pass funding bills and triggers a government shutdown, this Act authorizes the Treasury Department to immediately release the necessary money to keep LIHEAP payments flowing. The bill specifies that during a shutdown, these payments must continue at the exact same rate they were paid during the corresponding month in the previous year (fiscal year 2025). This is a big deal for the millions of families who rely on LIHEAP funds to pay for heating in the winter or cooling in the summer. For a single parent juggling two jobs, that LIHEAP check isn't just about utility bills—it's the difference between keeping the lights on and making rent.

Who Benefits from the Fine Print?

The clear winners here are the low-income households that depend on LIHEAP. This provision removes the anxiety that comes with budget deadlines and political brinkmanship. Instead of wondering if their heat assistance will suddenly dry up mid-winter because of a funding lapse, recipients get a guarantee of continuity, at least for FY 2026. This stability is crucial for budgeting and planning, especially when living paycheck to paycheck. For the state and local agencies that administer LIHEAP, this also guarantees they can keep their doors open and their staff working to process claims, ensuring no interruption of service.

The Catch: Where Does the Money Come From?

While the intent is solid, the bill introduces a wrinkle in how this emergency funding is sourced. It says the Treasury Department must use “money not already set aside for other specific purposes.” This is the part where the policy meets the pavement, and things get a little hazy. Essentially, the Treasury gets the authority to grab uncommitted funds from other places to keep LIHEAP going. While this solves the LIHEAP problem, it raises questions about which other programs might be affected. If a shutdown hits, the Treasury must decide which discretionary funds are truly ‘uncommitted’ and divert them to LIHEAP. This could potentially cause administrative headaches or delays for other federal programs that were expecting those funds later, even if they weren't explicitly appropriated yet. It’s a necessary trade-off to protect essential services, but it highlights the administrative complexity of funding during a political impasse.