It’s frustrating that Washington is killing helpful solar and energy efficiency tax credits at the end of the year–but we still have a chance to save two energy programs that have been threatened: The Low Income Home Energy Assistance Program (LIHEAP) and Energy Star.
Washington decides budget appropriations for the next fiscal year, beginning Oct. 1. Here’s an update on both programs:
LIHEAP
What’s the update?
Washington’s original proposal was to zero out funding for this program–but in a promising development, lawmakers in the House and Senate have moved to fund LIHEAP. Just this month, a House Appropriations Subcommittee proposed $4.035 billion in funding for LIHEAP–a $10 million increase. On the Senate side, the Appropriations Committee has recommended $4.045 billion.
Why do we care?
LIHEAP helps more than 5 million homes (seniors, people with disabilities, families) in Illinois and across the country stay safely connected to their utilities (318,467 Illinois households received benefits in the 2025 program year). When people can afford their utility bills, it helps keep down costs for everyone.
Note: Illinois’ LIHEAP program will begin Oct. 1, as planned, so qualifying customers can apply. Thankfully, LIHEAP gets a significant amount of funding from the state, which will carry the program in the short term. But it’s vital that federal LIHEAP funding comes through so that in the long-term Illinois’ program can help as many customers as possible.
Energy Star
What’s the update?
This program also was on the chopping block. But, as we’ve reported before, lawmakers in the House and Senate have moved to protect the program. This comes after some 1,000 companies, nonprofits and public agencies signed their name to a letter urging the Environmental Protection Agency (EPA) director to maintain Energy Star.
Why do we care?
Created by President George H.W. Bush to help consumers identify efficient appliances, this appliance-labelling program says it has helped consumers save $500 billion in energy costs. The head of the American Council for an Energy-Efficient Economy said Energy Star saves about $40 billion a year on a budget that is less than $40 million–and eliminating it would be “million-wise and billion foolish.”
Important: The fights to protect LIHEAP and Energy Star are far from over!
Appropriations legislation faces floor votes, reconciliation into one bill and then it has to be signed by the White House. Also, Congress might have to pass a continuing resolution (CR), which is short-term legislation to fund the government past September 30. If the CR is passed, advocates say we would then have to push for the speedy release of LIHEAP funding to help customers across the country stay connected to heat this winter. These are urgent battles!
