Utility Bill Relief: Liheap for Heating/Cooling; Water/Sewer Local Aid; How to Apply Quickly

Paying utility bills is a challenge for millions of U.S. households—especially during extreme heat and winter cold. Rising electricity, natural gas, water, and sewer costs can strain any budget.

The good news: federal LIHEAP support and local utility relief programs can make a real difference if you know how they work and how to apply quickly.

What is LIHEAP?

LIHEAP (Low Income Home Energy Assistance Program) is a federal block-grant program that helps eligible households pay heating and cooling bills, manage energy emergencies (like a shut-off notice), and in some cases fund minor energy-related home repairs or refer you to weatherization services.

States, territories, and tribes run LIHEAP and set their own application windows, benefit amounts, and documentation rules.

What’s new or notable in 2025?

• Funding: For FY2025, HHS initially released about $3.7B in LIHEAP funds (Nov 2024), then released the remaining $401.5M in May 2025. Total funding distributed for FY2025 is roughly $4.1B. This release timing matters for summer cooling programs and crisis aid.
• Updated Income Rules: States can set eligibility up to 150% of the Federal Poverty Guidelines (FPG) or 60% of State Median Income (SMI)—whichever is higher, but not less than 110% FPG. This keeps programs aligned with local costs.
• Cooling Assistance Windows: Cooling benefits remain seasonal in many states (late spring through early summer), while some include medically necessary cooling or equipment (e.g., AC or fan) within specific windows.
• Water/Sewer Aid: The temporary federal LIHWAP program has no new federal funding. Households must look to state/municipal customer assistance programs for water/sewer help.

2025 Fast Facts (At a Glance)

Feature	Details
Program	LIHEAP (Low Income Home Energy Assistance Program)
Coverage	Heating, Cooling, Energy Crises, referrals for Weatherization
Funding (FY2025)	~$4.1B released across initial and final tranches
Application Windows	Vary by state; many open in fall/winter for heating; spring–summer for cooling
Eligibility Basis	Up to 150% FPG or 60% SMI (state-set)
Emergency Help	Crisis benefits to prevent shut-offs or restore service
Where to Start	State LIHEAP site or call NEAR: 1-866-674-6327

Who Qualifies for LIHEAP in 2025?

States primarily look at household income, household size, and energy burden. Federal rules let states adopt the higher of 150% FPG or 60% SMI (which can be substantially above FPG in high-cost states).

150% of Federal Poverty Guidelines (FPG), 2025 (48 states & DC)

(Alaska/Hawai‘i have higher thresholds.)

Household Size	150% of FPG (Annual)
1	$23,475
2	$31,725
3	$39,975
4	$48,225
5	$56,475
6	$64,725
7	$72,975
8	$81,225
(Add’l person adds per HHS table.)

Why 60% SMI matters: Some states use 60% of State Median Income, which can be much higher than 150% FPG. Example: New Jersey’s FFY2025 LIHEAP/USF income limit for a family of 4 is $92,108/year (≈60% SMI). That’s well above 150% FPG for the same family size.

Priority often goes to seniors (60+), people with disabilities, and households with young children—especially where energy costs are a high share of income. States also factor in fuel type, region, and medical need when setting benefit amounts.

What LIHEAP Pays For

1. Heating Assistance (Winter): Helps pay for electric, natural gas, oil, propane, or wood heating. Benefit designs vary by state—some pay a one-time season credit, others provide tiered or monthly support.
2. Cooling Assistance (Heat Season): Helps with summer electric bills and, in some states, pays for equipment like ACs or fans (often once every few years). Windows are state-specific; e.g., New York’s Cooling Assistance closed on June 23, 2025. Some states offer medically necessary cooling benefits outside basic windows.
3. Crisis Assistance (Year-Round or Seasonal): Rapid help if you face a service shut-off, have a disconnection notice, or equipment failure. States cap crisis benefit levels and set specific rules.
4. Minor Energy-Related Repairs & Weatherization Referrals: LIHEAP can sometimes fund small energy-related fixes and will refer you to the Weatherization Assistance Program (WAP), which cuts bills long-term through insulation, air sealing, and other upgrades (average annual savings of hundreds of dollars).

Local Water & Sewer Bill Relief in 2025

The federal LIHWAP program’s funding has ended, so households needing water/sewer help should look to utility customer assistance programs (CAPs) and local aid. Many utilities offer bill discounts, lifeline rates, arrearage management, payment plans, or temporary grants. The EPA’s 2025 resources and CAPs compendium list program types and case studies you can use to find options near you.

Examples of local aid types you’ll see:

• Water/Sewer Discount: Income-based bill reductions (often 10–50%).
• Emergency Water Relief: One-time grants to stop shut-offs or restore service.
• Payment Plans/AMAs: Deferred or arrearage forgiveness plans for past-due balances.

How to Apply Quickly (Step-by-Step)

Step 1 — Gather documents

• Proof of Income (last 30–90 days): pay stubs, SSI/SSDI, unemployment, pensions.
• IDs for adults (and, if requested, for all household members).
• Current Utility Bills (electric, gas, or fuel delivery invoice).
• Proof of Residency (lease/mortgage, utility bill to your address).

Step 2 — Find your local LIHEAP office

• Go to your state’s LIHEAP website or call NEAR at 1-866-674-6327 to get the correct application portal or in-person location. Many states now support online applications.

Step 3 — Apply completely and accurately

• Report household size, gross income, utility provider, and any crisis status (shut-off notice, medical need, unsafe temps). States may ask for landlord or fuel vendor details for direct payment.

Step 4 — Apply early

• LIHEAP is often first-come, first-served until funds run out. Application windows differ by state (e.g., many heating programs open in fall, cooling in late spring/early summer). Check your state’s program dates page.

Step 5 — Follow up

• Track your application online or by phone, and upload missing documents immediately if requested. If you’re in a crisis, tell the agency—some can expedite cases.

Tips to Maximize Your Relief

• Combine Programs: Apply for LIHEAP for energy costs and ask your utility about water/sewer CAPs at the same time.
• Ask About Medical Cooling: If extreme heat worsens a medical condition, ask whether your state offers medically necessary cooling benefits or equipment. (Example: New Jersey offers a $300 medically necessary cooling credit in FFY2025.)
• Use Weatherization: Pair bill aid with WAP to permanently lower usage and bills via insulation, air sealing, and HVAC optimization.
• Payment Plans & Budget Billing: Most utilities can spread large seasonal bills across equal monthly payments and set zero-interest payment plans for arrears. (Ask your provider’s customer assistance desk.)
• Check Seasonal Rules: Some states have moratoriums on disconnections during extreme heat or cold. Knowing these rules can buy time to get approved for assistance. (Check your state utility commission.)
• Beware Scams: Government programs won’t ask for cash or gift cards. Use official state portals or call NEAR to confirm you’re applying in the right place.

Example: 2025 LIHEAP Income Reference (150% FPG vs. 60% SMI)

Basis	Household of 4
150% FPG (national, 48 states/DC)	$48,225
60% SMI (NJ example, FFY2025)	$92,108

Actual eligibility depends on your state’s chosen method and your household size.

Local Utility Relief (Water/Sewer): What to Look For

Even though LIHWAP isn’t funded, many utilities and cities continue offering Customer Assistance Programs:

• Bill Discounts/Lifeline Rates: Permanent percentage discounts for low-income customers.
• Crisis Grants: One-time help for arrears or to stop shut-offs.
• Arrearage Management Programs (AMPs): Make on-time payments for a set period and have a portion of old debt forgiven.
• Water Efficiency Upgrades: Leak repair, low-flow fixtures, and audits to reduce future bills.

Applying for Cooling in Hot States: Timing Matters

Cooling assistance can open earlier in hotter climates and may close once annual funds run out. For instance, New York’s 2024-25 cooling equipment benefit closed on June 23, 2025; other states may offer credits instead of equipment, or medically necessary cooling credits (like NJ’s $300). Always check your state’s LIHEAP page for the current status.

Don’t Forget Weatherization (Long-Term Savings)

The Weatherization Assistance Program (WAP), run by the U.S. Department of Energy, helps eligible households cut bills year after year by improving insulation, air sealing, and HVAC performance.

It’s often delivered by the same local agencies that process LIHEAP. Average annual bill savings are significant, and health/safety upgrades are part of the work. Ask your LIHEAP office for a WAP referral.

How to Start Today

1. Call 1-866-674-6327 (NEAR) or search your state’s LIHEAP portal to confirm eligibility and open dates.
2. Apply online where available—upload documents the same day.
3. If you have a shut-off notice, tell the agency; ask about crisis processing.
4. Contact your water/sewer utility to enroll in a CAP or payment plan.

As energy and water costs rise, LIHEAP and local utility relief programs can keep households safe through the hottest days and coldest nights.

In 2025, total LIHEAP funding has been fully released, eligibility thresholds reflect updated poverty guidelines and state median incomes, and many states continue to operate seasonal cooling help with added consideration for medical needs.

Pair short-term aid with weatherization to permanently reduce usage and bills. With the right documents and an early application, most households can tap into these programs and avoid dangerous shut-offs—and the financial stress that comes with them.

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