The federal dollars go to the Low-Income Home Energy Assistance Program known as LIHEAP. The program helps low-income families, senior citizens and people with disabilities pay for home heating and cooling.
Grassley called on Daniels to release the $300 million to Iowa and six additional states that have exhausted their LIHEAP money for the current fiscal year. Grassley said that 2,000 eligible Iowa households that applied for and were eligible to receive LIHEAP assistance didn't receive a benefit because of the state's shortfall.
"The combination of higher than normal heating bills and a colder than normal winter left thousands of Iowans eligible for energy assistance. As a result, there wasn't enough money to go around." Grassley said. "In Iowa, the state agency needs the money to make up for last winter and prepare the next one. Congress approved additional funding more than a month ago to help those struggling to pay their energy bills. It's time for the administration to deliver the money."
Nearly 85,000 Iowa households applied and were eligible for LIHEAP last winter. That was a 35 percent increase above the 62,000 Iowa households that received heating assistance the year before. Due to the shortfall, the Iowa program had to borrow funding from other programs in order to provide 3,000 households with LIHEAP assistance. Restoring these funds to the original programs is estimated at $1.6 million alone. Iowa stands to gain about $5.9 million of the $300 million in additional funding.
Nationwide, LIHEAP provides heating and cooling assistance to low-income households, including the working poor, those making the transition from welfare to work, the disabled and elderly, and families with young children.
Grassley's call to Daniels came on the heels of a letter Grassley and Rep. Greg Ganske sent Thursday, which urged the OMB director to release the additional funds.