Obama To Cut Energy Assistance For Poor; Kerry Urges Him To Reconsider

Sam Stein

Obama To Cut Energy Assistance For Poor; Kerry Urges Him To Reconsider

WASHINGTON -- Reports that President Barack Obama's upcoming budget will propose steep cuts in the government's energy assistance fund for low-income Americans ricocheted quickly on Capitol Hill Wednesday, spurring some intraparty squabbling.

Sen. John Kerry (D-Mass.) wrote a letter to Obama asking him not to drop funding for the Low Income Home Energy Assistance Program (LIHEAP) by about $3 billion.

"I understand that difficult cuts have to be made," the Massachusetts Democrat wrote. "But in the middle of a brutal, even historic, New England winter, home heating assistance is more critical than ever to the health and welfare of millions of Americans, especially senior citizens. I request that the administration preserve LIHEAP funding at least to the Fiscal Year 2010 funding at $5.1 billion when it submits its FY12 budget proposal to Congress."

The cuts, which were first reported by National Journal, appear to cut against the grain of previous administration policy. In 2010, Obama's omnibus budget resolution assigned roughly $5 billion in LIHEAP grants for 2011. The rationale was that at a time of acute economic crisis and rising commodity prices, a little federal assistance to those in need was politically defensible.

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"We simply cannot afford to cut LIHEAP funding during one of the most brutal winters in history," Kerry wrote in his letter, which is reproduced below in full.

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The Low Income Home Energy Assistance Program, or LIHEAP, would see funding drop by about $3 billion from an authorized 2009 total of $5.1 billion. The proposed cut will not touch the program's emergency reserve fund, about $590 million, which can be used during particularly harsh cold snaps or extended heat spells, three officials told National Journal.

In 2010, Obama signed into law an omnibus budget resolution that released a total of about $5 billion in LIHEAP grants for 2011. Pointing to the increasing number of Americans who made use of the grants last year, advocates say that LIHEAP is already underfunded. The American Gas Association predicts that 3 million Americans eligible for the program won't be able to receive it unless LIHEAP funding stays at its current level.

How many people, if any, might actually lose the assistance is difficult to determine. Officials were quick to point out that LIHEAP spending has grown significantly over the past several years as the government tried to keep up with rising gas prices. In 2008, the government spent $2.8 billion on LIHEAP. In 2009, thanks to the Recovery Act, better known as the stimulus bill, the figure jumped to $8.1 billion. So the cut from that high level restores LIHEAP to something close to where it was before Obama took office. Other circumstances, such as the weather and fuel prices, could affect the distribution of benefits.

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The President

The White House

1600 Pennsylvania Avenue, NW

Washington, DC 20502

Dear Mr. President:

I am writing to express my deep concern about the potential for extreme cuts in the Low Income Home Energy Heating Assistance Program (LIHEAP) that – judging by today’s news reports – may be included in the administration’s budget request for Fiscal Year 2012.

I understand that difficult cuts have to be made, and from Gramm-Rudman deficit reduction to the 1993 deficit reduction act I’ve always supported serious efforts to restore fiscal sanity, but in the middle of a brutal, even historic, New England winter, home heating assistance is more critical than ever to the health and welfare of millions of Americans, especially senior citizens. I request that the administration preserve LIHEAP funding at least to the Fiscal Year 2010 funding at $5.1 billion when it submits its FY12 budget proposal to Congress.

We simply cannot afford to cut LIHEAP funding during one of the most brutal winters in history. Families across Massachusetts, and the country, depend on these monies to heat their homes and survive the season. It is estimated that over 3 million families that qualify for heating assistance would not receive it if the funding levels are not maintained. Compounding the situation is the increased cost of home heating oil, which is roughly 12 percent higher than last year.

LIHEAP is already strained as it is – I have submitted requests for that last several years to increase the overall funding because the assistance didn’t match the need. Cutting the program now would be devastating to the Northeast that depends on this support. If an increase is not an option we must do everything we can not to leave children and families out in the cold.

I again request that you maintain level funding at $5.1 billion for the LIHEAP program and provide vital heating assistance this winter. Thank you for your consideration.



Sincerely,

John F. Kerry