For fiscal year 2007, Congress appropriated $1.98 billion for regular funds and $181 million for contingency funds.  The President’s budget request for fiscal year 2008 was only $1.782 billion, of which $1.5 billion would be for regular funds and $282 million for contingency funds.  This would have represented a decrease in regular funding of 10%, a number that was far lower than last year’s need, or the expected increase in this year’s need, while increasing emergency funding, which is distributed by Presidential authority, rather than Congressional authority by about a hundred million dollars.

The House has proposed $682 million in contingency funds, while the Senate would maintain the same level as 2007 — $181 million.

Congress had proposed to add funds to LIHEAP in three supplemental appropriations bills. The first bill (H.R. 1591) would have added a total of $400 million to LIHEAP, $200 million for regular funds and $200 million for contingency funds.  Prior to conference with the House, the Senate’s version of the first supplemental (S. 965) would have added $640 million for LIHEAP, $320 million for regular funds and $320 million for contingency funds.

The first supplemental was vetoed by President Bush on May 1, and the House failed to override the veto.  On May 8, a second supplemental appropriations bill (H.R. 2206) was introduced.  Like H.R. 1591, it contained $400 million for LIHEAP, with the same breakdown between regular and contingency funds.

However, on May 23, Congress removed the LIHEAP funds from the bill.

On August 29, the Department of Health and Human Services (HHS) released $50 million in contingency funds to twelve states due to severe heat.  These states were Alabama, Arkansas, Georgia, Kansas, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, Oklahoma, South Carolina, and Tennessee.

On September 27, HHS released the remainder of the 2007 contingency funds — $131 million.  Of the $131 million, $106 million went to all states, tribes, and territories for anticipated winter heating costs, while the remaining $25 million went to seven states based on heating oil usage and average 2006-2007 winter temperature.  These states were Alaska, Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont.  Approximately $21 million in contingency funds dating from 2005 remain available until expended.

When it became clear that the cost of heating oil, at more than $3 per gallon, or nearly a dollar more per gallon than this time last year, was going to be a severe burden on low income families who lived in the northern states, Congress once again attempted to pass a LIHEAP bill in November.

Bush, once again, vetoed the bill.  $2.4 billion in heating assistance was denied because it was $480 million more than Bush wanted.  Once again, Congress was unable to override the veto, but both the House and Senate are working feverishly toward a solution by year’s end.

The government's Low Income Home Energy Assistance program would get roughly $409 million more in a year-end budget bill Congress approved Wednesday. Fuel aid advocates praised the increase, but warned it won't be enough to keep pace with record home heating oil prices, particularly in the Northeast.

"It's a step in the right direction," said Mark Wolfe, executive director of the National Energy Assistance Directors' Association, which represents state-run low income energy assistance programs. "But it's going to be a very tough winter even with this."

Lawmakers are expected to push for additional money early next year. Wolfe said some states could begin running out of fuel assistance funds in late January.

"This is certainly an initial step, but in context of the historic prices of heating oil, we must provide additional resources to this vital program," Sen. Olympia Snowe said.

The Senate late Tuesday approved about $2.6 billion for LIHEAP. Similar LIHEAP money is part of a massive $555 billion omnibus appropriations package the House passed Wednesday.

President Bush had proposed cutting the fuel aid program by $379 million.

Maine, one of the country's coldest states, is bracing for a potential crisis. Officials worry that poor, elderly and working families will be more vulnerable as winter wears on and they use up their fuel aid for the season.

Maine homes relying on oil use about 860 gallons a year, on average. State officials have predicted it will cost an average household about $2,750 for heating oil this winter.

That means Maine's average fuel aid benefit of $579 will only last most families about a month. Five or six years ago, the average benefit would cover about half of the heating season, officials said.