Washington DC (March 5, 2008) – The National Community Action Foundation made the case for increased support for the Low Income Home Energy Assistance Program today on Capitol Hill today.

“Consumers’ bills for the energy they need to meet only the most basic requirements for safe housing have not been higher in a generation, not even in real dollars,” said Dr. Meg Power, who represented NCAF today at a U.S. Senate Health, Education, Labor and Pensions subcommittee meeting on Children and Families.

Recent forecasts show that during this fiscal year, the 34 million households eligible for LIHEAP can expect to pay an average of 17 percent of their average household income for energy. The lowest 13 million Americans in poverty may spend up to 22 percent of their incomes for energy. Households that are ineligible for LIHEAP average a 4 percent energy burden.

NCAF recommended a $6 billion LIHEAP authorization to meet more energy needs, a fairer distribution formula and other changes to the program that support family stabilization.

“LIHEAP is an important tool in the fight to reduce poverty and stabilize low-income workers, retirees and their families, but it has become too small a lever, by contrast, to the energy burden that must be relieved,” Power said. “In recent years, many have come into their Community Action Agency for the first time, having never before sought help from any government or charitable program, but are unable to pay the high bill to keep from being disconnected from utility service or denied a fuel delivery.”

Power pointed out that warm-state consumers are disproportionately affected by increases in their energy bills, because the LIHEAP resource shortfall compared to the need is so great. NCAF believes the current formula creates a barrier to additional funding because the coldest states reap so little reward from new appropriations. It suggests legislation to require the Secretary of Health and Human Services or the Congressional Research Service to work with the Census Bureau to deliver at least three options for a formula that ensures every state is a winner when funding increases.

NCAF is the Washington advocate for Community Action Agencies nationwide that deliver about one-third of the LIHEAP bill assistance resources to participants. Power said the CAA local agencies work face-to-face with the vast majority of those who receive “crisis” assistance and administer nearly all the LIHEAP funds devoted to weatherization.