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Shutdown Freezes LIHEAP Funds as Winter Sets In, Forcing States and Utilities to Improvise

With federal dollars on hold, stopgap measures by states, utilities aim to prevent shutoffs.

Overview

  • The Oct. 1 federal shutdown has stalled new 2026 LIHEAP allocations at HHS, leaving state heating aid programs in limbo as temperatures drop.
  • Ohio opened its HEAP Winter Crisis Program on Nov. 1 using prior-year carryover funds, with officials declining to say how long those dollars can sustain services.
  • Minnesota’s Commerce Department says it lacks money to serve all households this season; roughly 125,000 households rely on the program each year, and applications are being taken to prepare for when funds resume.
  • Utilities are offering limited relief in Minnesota, with Minnesota Power pausing disconnections for customers connected to energy assistance and waiving late fees while arranging budget-based payment plans.
  • Xcel Energy is monitoring the situation and keeping customers in affordability programs where possible, as Congress has yet to fully end the shutdown and the timing for restored federal payments remains unclear.