HHS Details the Release of $5.1 Billion in LIHEAP Funds

HHS has announced the release of $5.1 billion in LIHEAP funds.  All block grant funds ($4.5 billion) and contingency funds ($590 million) were awarded to States on October 16, 2008. 

The FY 2009 LIHEAP block grant allocation table shows each State’s allotment (gross/tribal set-asides/net allotments) of $4.5 billion in regular block grant funds.  These funds are being allocated to States from the total $5.1 billion appropriated for LIHEAP in the FY 2009 continuing resolution (CR), signed into law on September 30, 2008 (Public Law 110-329). 

The $590 million FY 2009 LIHEAP emergency contingency fund release is similar to the $121 million contingency funds released on September 17, 2008—$490 million will be released to States based on their regular block grant allocation percents and $100 million to the 7 States with 30 percent or more low-income households using heating oil.

Details about the $5.1 billion LIHEAP appropriation is provided in a question and answer format that will be followed with an Information Memorandum.  The CR has several provisions that may affect how States operate their LIHEAP programs in FY 2009.  States should take particular note of the following:

• Of the $4.5 billion allocated to States under the regular block grant—$3.67 billion is allocated under the “old formula” and $840 million allocated under the  “new formula.”
  
  
• $27 million in leveraging funds is being awarded this month (prior to October 30, 2008) that will be based on the grantee applications submitted in FY 2008, and were not awarded then because leveraging (and REACH) were not authorized for funding in FY 2008.
  
  
• States are asked NOT to submit FY 2009 leveraging applications that were to be due to HHS next month by November 30, 2008.  
  
  
• States have the option to set their LIHEAP eligibility guidelines for their FY 2009 programs at any level up to the greater of 150 percent of poverty or 75 percent of State median income.
  
  
• Normal LIHEAP rules apply to the $5.1 billion, with the same limitations on administrative costs, carryover, etc.  States must obligate 90 percent of their FY 2009 funds by September 30, 2009 and may carry over up to 10 percent of these funds into FY 2010.
  
  
• States with new Tribe/State agreements pending shsould be aware that because States will be receiving all of their FY 2009 block grant funds at the beginning of the year, that any changes to increase tribal funding later will result in a “negative grant award” to the State to offset the additional funds going to the Tribe.  These changes will then lower the State’s net allotment amount from the net allotment

Source: Department of Health and Human Services

Page Last Updated: September 24, 2009