As winter approaches, nearly 5 million households in the United States are expected to rely on the Low Income Home Energy Assistance Program (LIHEAP) to help manage heating costs. However, the increases in energy prices may leave many of these families unable to afford their heating bills.

Projected Heating Costs for Winter

The National Energy Assistance Directors Association (NEADA) estimates that during this winter, U.S. households will spend an average of $1,030 on heating—a notable increase of $82 compared to last winter. This initial projection was revised in late September to accommodate rising energy costs.

LIHEAP Benefits and Financial Shortfalls

In fiscal year 2025, the average heating assistance benefit per household was reported at just $467, according to LIHEAP data. Should assistance levels remain consistent, families may have to cover an additional $563 in heating expenses this winter.

NEADA has called on Congress to boost LIHEAP funding from $4 billion to $7 billion to support families as home energy costs soar.

Impact of Rising Energy Prices

The expected increase in heating costs, compounded by high crude oil prices—currently fluctuating above $100 per barrel due to geopolitical tensions—could significantly strain household budgets. Families relying on heating oil will bear the brunt of these price hikes, with costs projected to rise by 50% due to ongoing conflicts in the Middle East.

Mark Wolfe, Executive Director of NEADA, stated, “This is a warning that too many families are entering winter with no room left in their budgets.”

State-specific LIHEAP Benefits

As of fiscal year 2025, about 14% of households in New York received LIHEAP heating benefits, the highest rate in the country. States like Vermont and Michigan follow closely with nearly 8% of their households accessing the program.

Benefits vary significantly by state, reflecting different local heating demands and energy costs. For instance:

• Alaska: Average benefit of $1,554
• New Hampshire: Average benefit of $1,045 (primarily heating oil users)

Outlook for Households in the Northeast

This winter, households in the Northeast region are expected to spend nearly $2,627 on heating oil between mid-November and mid-March. After receiving LIHEAP assistance, many families may still need to cover more than $1,000 of their heating expenses.