WASHINGTON — Sen. Chuck Grassley has successfully redirected a plan for distributing additional home heating dollars from the federal government this winter that would have shortchanged Iowans.
Grassley protested a formula established by Congress nearly two decades ago and this weekend secured authority for the administration to distribute the money where it's most needed, in states such as Iowa, rather than simply doling out dollars to big states in the South.
Money for the Low-Income Heating and Energy Assistance Program (LIHEAP) was included in both the Defense appropriations bill and the Budget reconciliation package that passed the House of Representatives early this morning. Because of Grassley’s efforts, most of the money now will go to the LIHEAP contingency fund and be distributed by the administration on an as-needed basis.
"It’s important that money Congress provides for LIHEAP go to those who need it most, not just to a state so it’s ‘even,’" Grassley said. "By putting more of the dollars in the contingency fund we’ll get much needed help to lower-income Iowans who are being socked with high heating costs in an especially cold winter."
Grassley said that $2 billion was included in the Defense appropriations bill for the LIHEAP contingency fund for fiscal 2006. He also said that an additional $1 billion was included in the Budget reconciliation package for fiscal 2007. This money will be divided between the contingency fund and the program formula. The contingency fund is to receive 75 percent of the funds and the program formula is to receive 25 percent of the funds. The contingency fund is distributed at the discretion of the administration based on its analysis that a state needs additional money for LIHEAP. The formula fund money is distributed to states according to a formula set by Congress.
Grassley said he took on this fight when he determined last week that the legislative vehicles would have directed additional money for LIHEAP under the LIHEAP law’s formula, rather than according to need. As a result, very few of the extra dollars would have gone to cold-weather states, including Iowa, where additional funding is needed. To make the change, Grassley personally lobbied the Senate leadership, White House officials and committee chairmen in both the House of Representatives and the Senate to reject the formula-only plan and instead embrace his 75/25 percent approach.
Both the Defense appropriations bill and the Budget reconciliation package are expected to be brought before the Senate for a vote this week.
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