Heating & Cooling Relief Act Proposes Major Boost to Energy Aid: More Funds, Expanded Eligibility, and Shutoff Protections

The Heating and Cooling Relief Act aims to overhaul the federal program helping folks cover their energy bills, currently known as the Low-Income Home Energy Assistance Program (LIHEAP). This bill significantly increases funding, expands who qualifies for help, adds protections against utility shutoffs, and pushes for energy efficiency upgrades. The core goal, laid out in Section 2, is to tackle rising energy costs, especially for lower-income households often forced to choose between heating their homes and buying essentials, while also addressing the impacts of climate change like extreme heat and cold.

Turning Up the Heat (and AC) on Assistance

First off, the bill pumps more money into the program, soon to be renamed the Home Energy Assistance Program (HEAP), dropping the "Low-Income" tag (Section 10). Section 3 authorizes a base of $2 billion starting in fiscal year 2026 (up from current levels), plus another $1 billion for new grants, and additional funds tied to need and major disasters like heat waves or storms. This isn't just about paying bills; Section 5 clarifies that disaster aid can cover both heating and cooling needs, even in the same year, without requiring proof of a medical condition.

Who gets this help? Section 6 broadens eligibility significantly. Households earning up to 250% of the federal poverty level or 80% of their state's median income (whichever is higher) could qualify. For context, this pushes the income limit higher, potentially bringing assistance within reach for more working families feeling the squeeze. The bill also explicitly prohibits denying aid based on citizenship status and pushes states to use data-sharing with programs like SNAP or Medicaid to automatically enroll eligible households or simplify applications, even allowing self-attestation in some cases.

New Rules for the Utility Meter

This isn't just about sending checks; the act imposes new responsibilities on energy suppliers who receive HEAP funds on behalf of customers (Section 7). Key changes include:

• No Late Fees: Suppliers can't charge late fees for six months before and six months after a household receives HEAP assistance.
• Shutoff Shield: Utilities are barred from shutting off power or gas for two years after a household receives assistance.
• Affordability Plans: Within two years, suppliers must work with the state to offer low-income energy affordability payment programs.
• Data Sharing: Suppliers need to share data on households with unpaid bills to help states target outreach.

These are big shifts aimed at preventing energy insecurity and the cascading problems that come with shutoffs, like potential eviction or health issues.

Beyond the Bill: Weatherization and Greener Grids

The act also looks at longer-term solutions. It increases the minimum amount states must spend on weatherization assistance from 15% to 25% of their HEAP funds (Section 8). There's a strong emphasis on using these funds for energy-efficient repairs, particularly those that reduce reliance on fossil fuels – think swapping out an old oil furnace for an electric heat pump, ideally powered by renewables. States are encouraged to help households access community solar or other renewable energy options.

Furthermore, Section 11 introduces "Just Transition Grants," a joint program with the Department of Energy. These grants help state and local governments develop plans to lower energy costs for high-usage households, focusing on energy efficiency upgrades and climate resilience, particularly in communities transitioning away from fossil fuel economies. There's a push to partner with workforce programs and minority- or women-owned businesses for these retrofits.

Getting Practical: Data, Outreach, and Implementation

Making this all work requires better systems. Section 9 mandates the development of standardized ways for states and utilities to track and report data on energy bill arrears (unpaid bills), late fees, and disconnections. The goal is to get a clearer picture of energy burdens and target help more effectively.

States also face new operational requirements under Section 7. They need to develop online application systems within five years, conduct more outreach (including partnerships with schools), ensure program staff earn a living wage, and plan for year-round program operation. The Department of Health and Human Services (HHS) is tasked with providing guidance on everything from outreach to medically vulnerable people to coordinating with housing agencies on safe temperature standards in federally assisted housing.

In short, this bill represents a major potential expansion and reshaping of federal energy assistance, aiming for broader reach, stronger consumer protections, and a greater focus on long-term energy efficiency and climate adaptation for households struggling with energy costs.