Only a Fraction of Federal Aid Reaches Millions Struggling to Pay AC Bills During Heat Waves

DENVER — Bobbie Boyd, a 57-year-old resident of northwest Arkansas, is facing a difficult battle against the extreme heat. With temperatures reaching near triple digits, her window air conditioner is constantly running, resulting in a ballooning electric bill that takes a significant chunk out of her $882-a-month fixed income. To make ends meet, Boyd has had to make sacrifices such as eating one meal a day so that her 15-year-old grandson, whom she is raising alone, can have two meals. She has also stopped paying for car insurance and skips medical appointments.

Boyd’s reliance on cooling is crucial for her to avoid heat-induced asthma attacks. Unfortunately, she is not alone in facing these agonizing decisions. As climate change causes temperatures to rise across the United States, millions of the poorest Americans are grappling with the choice between enduring perilous indoor heat or paying expensive bills. While President Joe Biden has allocated billions of dollars to federal programs aimed at subsidizing energy costs for the poorest Americans, only a small fraction of the most vulnerable individuals actually receive these funds during the sweltering summer months.

Preliminary federal data reveals that nearly 30 million American households struggle to pay their energy bills and qualify for the subsidy, but less than 3% actually receive assistance for their summer bills. In comparison, food stamps reach over 80% of the eligible population nationwide. The Low Income Home Energy Assistance Program (LIHEAP), which is responsible for providing the subsidy, falls significantly short, despite the record-breaking heat and the increasing reliance on air conditioning for survival. One reason for the limited reach of LIHEAP is that most states exhaust their federal funding every year, according to the Department of Health and Human Services, which oversees the program.

Due to the program’s historical focus on winter heating bills, LIHEAP has been slow to adapt to the hotter summers caused by climate change. Many states do not even offer assistance for the summer months, and those that do often run out of funds before the hottest days arrive. Biden has emphasized the importance of LIHEAP, stating that it is crucial for low-income families to receive help with their energy bills. He also recognized that even after the heat subsides, many families will face astronomical energy bills.

Although Arizona is the hottest state in the country with approximately 650,000 low-income households qualifying for federal cooling assistance, only about 11,600 households actually receive the aid, according to federal data. Samira Burns, an official from the Department of Health and Human Services, stated that the Biden administration has doubled the LIHEAP budget through the American Rescue Plan and has provided updated guidance to help states target support during extreme heat. However, more needs to be done to ensure that eligible households receive the utility assistance they need.

The consequences of energy insecurity can be dire, as demonstrated by the case of Stephanie Pullman, a 72-year-old woman who died in Arizona five years ago after her electricity was cut off due to an unpaid $51 bill. While regulated power companies in Arizona are now banned from disconnecting customers during extreme heat, nearly 3 million Americans had their power disconnected for failing to pay bills last year, with a third of disconnections occurring during the three hottest summer months.

Candace Griffin of Houston, Texas, experienced disconnection notices this summer and had to seek nonprofit assistance to keep her electricity running. The monthly bills exceeded $400, leaving Griffin with no choice but to prioritize paying for energy, lights, and air conditioning. The poorest Americans and minority communities already reside in hotter neighborhoods and often do not have access to air conditioning at all. While there are tax credits and rebates available to help install air conditioning, they remain out of reach for impoverished households. Additionally, those with the lowest incomes face higher energy costs than wealthier individuals, primarily because they are more likely to live in older, poorly insulated homes.

Energy insecure households pay 20 cents more per square foot for energy usage compared to the national average, according to the U.S. Energy Information Administration. The federal Weatherization Assistance Program aims to improve the insulation of low-income homes, reduce reliance on air conditioning and heating, and lower energy bills. However, even though almost 40 million low-income households are eligible for this program, only around 35,000 households receive assistance each year.

The consequences of energy insecurity extend beyond high bills. Approximately 25% of low-income households end up in debt due to energy expenses, and if electricity is disconnected, additional costs accumulate. Refrigerators warm up, food spoils, and utility companies charge hefty fees for reconnection. Without significant government intervention to address these issues, the number of energy insecure households is likely to grow.

While national nonprofits like The Salvation Army and Catholic Charities provide emergency financial aid, they can usually only offer relief once a year. These organizations serve as a safety net, particularly for individuals who struggle to navigate the multi-step LIHEAP application process. Vivian Romero, a resident of Phoenix who is raising two teenage granddaughters, has depended on federal LIHEAP funds in the past. However, this year, she sought assistance from Catholic Charities to pay her June power bill of $314 after experiencing a few months of homelessness. Nonprofits like Catholic Charities offer critical support, but they cannot meet the ongoing needs of energy insecure households.

Bobbie Boyd in Arkansas recently received a disconnection notice for her electricity bill after receiving an extension. In the past, when her power was shut off, she and her grandson had to sleep in their car. This time, The Salvation Army stepped in to prevent the disconnection. However, Boyd does not receive LIHEAP benefits and was unaware that financial aid was available. She struggles to make ends meet, knowing that all that stands between her and the scorching summer heat is her roof.

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