Stimulus Funding: Low Income Families Provided Winter Heat Thanks to $1.9 Trillion American Rescue Plan

White House Press Briefing with Jen Psaki and Gene Sperling in Washington, US - 02 Aug 2021
Michael Brochstein / SOPA Images / Shutterstock.com

The Biden administration announced on Nov. 18 that it’s taking steps to dole out billions in aid for winter heating and utility bills. This amount comes largely from the $1.9 trillion American Rescue Plan.

See: Jobless Claims Fall for Seventh Straight Week Despite Record Quits Levels
Social Security COLA: Seniors Will Receive the Highest Increase in Decades, But It’s No Match For 6.2% Inflation Surge

An additional $4.5 billion is being allocated to the Low Income Home Energy Assistance Program, which normally receives annual funding between $3 billion and $4 billion to serve roughly 5 million households. The extra funds will be available until Sept. 2022, according to the White House.

“These new programs and funding were designed to ensure that if the weather was colder or the prices were higher, we would have the highest resources ever to help as many hard-pressed families as possible,” said Gene Sperling, who is managing coronavirus relief for the White House, reported AP News.

Make Your Money Work for You

More: Despite Infrastructure Bill Success, Debt Ceiling and Social Spending Plans Still Need Resolution

According to the Labor Department’s consumer price index, electricity and natural gas prices are about 11% higher compared to a year ago and data from the Energy Information Administration shows that heating oil prices have nearly doubled over the past year.

The White House also called on utility companies receiving public assistance to prevent shutoffs this winter and help expedite the delivery of federal aid. DTE Energy, Eversource, National Grid, NorthWestern Energy, Green Mountain Power, Portland General Electric, Vermont Gas and the delivered fuel trade association NEFI have agreed to notify eligible recipients and ensure no utility shutoffs for vulnerable customers.

Learn: Oil Prices Rise As Industry Gets a Boost from Economic Outlook, Infrastructure Bill
Explore: How to Reduce Your Heating and Cooling Bills

AP News also added that invitations were sent out for a call  to take place on Nov. 18 with representatives from governors’ offices to discuss plans for fund distribution and coordination.

More From GOBankingRates

About the Author

Josephine Nesbit is a freelance writer specializing in real estate and personal finance. She grew up in New England but is now based out of Ohio where she attended The Ohio State University and lives with her two toddlers and fiancé. Her work has appeared in print and online publications such as Fox Business and Scotsman Guide.

Untitled design (1)
Close popup The GBR Closer icon

Sending you timely financial stories that you can bank on.

Sign up for our daily newsletter for the latest financial news and trending topics.

Loading...
Please enter an email.
Please enter a valid email address.
There was an unknown error. Please try again later.

For our full Privacy Policy, click here.