Cash grants that help keep thousands of Pennsylvanians with low incomes stay warm during the winter months are on hold.
The temporary pause may put a lot more people in a desperate situation as the state’s winter moratorium ends at the end of this month, said Angie Collins, manager of programs and services at North Hills Community Outreach.
“That cuts off some of the options for folks,” she said. “Once you're one payment behind, it’s really hard to get caught up. Maybe they'll get a termination notice in May or June, where if they had that $300, there may not have been that threat.”
As Congress lags in passing the federal budget, the state is conserving funds for its Low Income Home Energy Assistance Program, or LIHEAP, which helps families living on low incomes pay their heating bills. The state is waiting to collect its remaining 10 percent of federal funding for the program, which is equivalent to $21 million, according to the Department of Human Services.
Starting March 15, the state is only issuing LIHEAP’s crisis grants, which are for households in imminent danger of losing their utility services. The program’s other form of assistance, which is more widely accessible to anyone in Pennsylvania in need of utility help, is paused. These one-time cash payments, which do not need to be paid back, can range from $300 to $1,000.
"LIHEAP is a resource that helps many of our fellow Pennsylvanians make ends meet by providing cash or crisis grants directly to households or their utility provider," said Secretary Arkoosh in a press release. “If you or someone you know needs help or could benefit from this program, I still encourage you to apply for LIHEAP today."
LIHEAP is funded through a federal block grant, with 90 percent of that being paid to states at the start of each season. Traditionally, congressional approval happens at the end of January, and DHS receives the funds in February or early March.
That’s not the case this year. Elizabeth Marx, executive director of the Pennsylvania Utility Law Project, said the state is making the best of a “really bad situation” by continuing to offer the program’s most critical relief.
“The latest we've seen in recent memory is February, and here we are,” Ms. Marx said. “But the state acted pretty quickly here to identify a contingency plan and release it to the public.”
It’s important to realize that the state is not closing the program, so people should still apply for both crisis and cash grants, she said. The priority is on LIHEAP crisis benefits to ensure people most at risk do not lose essential home energy services. In the meantime, DHS will continue to accept and process all applications for LIHEAP and is not planning to shorten the LIHEAP season, which remains open through April 5.
The temporary loss of assistance comes at a time of increased need. Last year, over 320,000 families statewide lost gas, electric or water service, Ms. Marx said.
“That is just too many, and we need to be grappling with the affordability challenges of low income people,” she said. “We don't have enough funding in Pennsylvania to support the energy needs of our low income households.”
The LIHEAP assistance makes a difference for people experiencing homelessness as well. Because so many people are unable to make their utility bills, the Salvation Army’s Family Caring Center, located in Pittsburgh’s East Liberty neighborhood, asks incoming clients about it on their intake forms.
Sherry Rorison, the nonprofit’s director, says outstanding utility payments can prohibit people from being able to move into housing. One client had to wait months until she could move into a place, even after signing a lease, because she realized she had $1,500 of past due utility bills to pay.
As the annual winter utility termination moratorium ends March 31 –which prevents state utility companies from shutting off services for income-eligible households– Ms. Rorison worries about what's ahead. She wonders about the people who will no longer be able to lean on the assistance of the cash grants, which can ward off termination notices in the first place.
“In essence, it will create a crisis down the road,” she said.
Ms. Collins of North Hills Community Outreach says she saw a major uptick in utility assistance requests last year compared to previous years, and it still seems to be trending upward.
“Where somebody might have been $400 behind before, now they're $800 behind,” Ms. Collins said.
She has found that cash grants can sustain people throughout the entire winter season at times. While the buffers of the cash payments are temporarily gone, she is thankful that the crisis grants are still available to people who need the most immediate help.
“Crisis grants can take care of their whole shutoff notice,” she said. “Reset them almost down to zero and get them back on track.”
Pennsylvanians can apply for LIHEAP and other public assistance programs online or by submitting a paper application to their local county assistance office.
First Published: March 19, 2024, 10:25 p.m.
Updated: March 20, 2024, 3:59 p.m.
