LIHEAP Appropriations and Regular Block Grant Allocations for Fiscal Year (FY) 2010
THIS CONTAINS INFORMATION ISSUED BY THE U.S. ADMINISTRATION FOR
CHILDREN AND FAMILIES IN LIHEAP INFORMATION MEMORANDUM TRANSMITTAL
NO. LIHEAP-IM-2010-3, DATED 3/16/10
TO: LOW INCOME HOME ENERGY ASSISTANCE PROGRAM (LIHEAP)
GRANTEES AND OTHER INTERESTED PARTIES
SUBJECT: LIHEAP Appropriations and Regular Block Grant
Allocations for Fiscal Year (FY) 2010
RELATED
REFERENCES: The Consolidated Appropriations Act, 2010 (Public
Law (P.L.) 111-117); The Human Services Amendments
of 1994 (P.L. 103-252); The Human Services
Reauthorization Act (P.L. 98-558) of 1984; the Low-
Income Home Energy Assistance Act, Title XXVI of
the Omnibus Budget Reconciliation Act of 1981 (P.L.
97-35), as amended
PURPOSE: To provide grantees with information about the $5.1
billion LIHEAP appropriation for FY 2010, including
$4,509,672,000 for regular block grant funds and
$590,328,000 for emergency contingency funds.
BACKGROUND: The Human Services Reauthorization Act (P.L. 98-
558) of 1984 amended Section 2604(a) of the LIHEAP
statute to modify the formula for allocating LIHEAP
regular block grant funds to the States. See
Attachment 1 for the relevant portions of this act.
This modified formula (the "new formula"), calls
for such funds to be distributed to each State on
the basis of the percentage which expenditures for
home energy by low-income households in that State
(based on the most recent satisfactory data
available to the Department of Health and Human
Services (HHS)) bears to such expenditures in all
States-except for reductions that ensure the
following:
1) No State receives less than it would have
received under the previous formula if the
appropriation for that year was $1.975 billion
(the "old formula");
2) If the regular block grant fund's appropriation
exceeds $2.25 billion then no State whose share
of such funds is below one percent (under an
appropriation of $2.25 billion) receives a lower
share than it would have received under an
appropriation of $2.14 billion; and
3) If the regular block grant fund's appropriation
is too low to allocate such funds in the fashion
described above then the amount which all States
receive will be ratably reduced.
Under these conditions, the new formula kicks in
when the amount of such funds that is available to
the States exceeds $1.975 billion and the old
formula holds when the amount of those funds equals
or falls below $1.975 billion.
The Human Services Amendments of 1994 (P.L. 103-
252) amended Section 2602(e) of the LIHEAP statute
to provide for a permanent authorization of an
emergency contingency fund. See Attachment 2 for
the relevant portions of the LIHEAP statute, as so
amended. On January 20, 2010, the Secretary of
Health and Human Services released $490,000,000 of
these funds because of the unusually cold weather
during the late fall and winter and the continuing
effects of the economic downturn. See LIHEAP-IM-
2010-4 for details about this release.
The Energy Policy Act of 2005 (P.L. 109-58) amended
P.L. 97-35 to authorize $5.1 billion for the
regular block grant fund through FY 2007. Except
as modified by the appropriations for FY 2009 and
FY 2010; the allocations, uses and all other
conditions of these funds remain the same as those
set by P.L. 97-35 as amended. See LIHEAP-IM-2009-2
for details about the FY 2009 modifications and the
CONTENT section of this memorandum for details
about the FY 2010 modifications.
CONTENT: On December 16, 2010, the President signed
Consolidated Appropriations Act, 2010 (P.L. 111-
117). This law provided Federal agencies with new
appropriations for FY 2010-including $5.1 billion
for LIHEAP. The LIHEAP appropriation consisted of
$4,509,672,000 for the regular block grant fund and
$590,328,000 for the emergency contingency fund.
It also contained two special provisions which
superseded current law (that set by P.L. 97-35, as
amended) on the allocation and use of these funds.
These provisions apply only to funds that were
appropriated for FY 2010 or that were available for
obligation in FY 2010.
Of the $4,509,672,000 appropriated for the regular
block grant fund, HHS set aside (a) $27 million for
the leveraging incentive program (Leveraging) and
the Residential Energy Assistance Challenge Program
(REACH); and (b) $300,000 for Training and
Technical Assistance (T&TA) activities.
Special Provisions Affecting FY 2010 LIHEAP Funds
P.L. 111-117 contained the following two provisions
that superseded current law on the allocation and
use of FY 2010 LIHEAP funds. These provisions
apply only to funds that were appropriated for FY
2010 or that were available for obligation in FY
2010.
Provision One required HHS to allocate the
$4,509,672,000 in regular block grant funds in
the following fashion:
• $3,669,880,000 according to the formula that
normally takes effect when the regular block
grant fund's appropriation falls below $1.975
million (the "old formula"); and
• $839,792,000 according to the formula that
normally takes effect when the regular block
grant fund's appropriation exceeds $1.975
million (the "new formula").
Provision Two allowed grantees the option to set
their income eligibility maximum at or below 75
percent of State median income (SMI). For FY
2010, States can set their income maximums at
the higher of 150 percent of the HHS poverty
guidelines or 75 percent of State median income
instead of 60 percent of SMI. This provision
applies only to (1) LIHEAP funds that are
appropriated for FY 2010; and (2) LIHEAP funds
that were appropriated for a fiscal year prior
to FY 2010 but that remain available in FY 2010
(such as any funds carried over from FY 2009).
Both of these provisions are identical to special
provisions that were established for the FY 2009
appropriation. In addition, the amounts
appropriated for FY 2010 are the same as the
amounts appropriated for FY 2009. Despite these
facts, most States' FY 2010 regular block grant
allocations differ from their FY 2009 regular block
grant allocations. This difference is due to the
updates that HHS made to the data that underlies
the new formula. The new formula is updated
annually each spring. As a result, some States
will see increases, while others will see decreases
from FY 2009. Note that this is the first time in
the program's history in which the exact same
appropriation level ($5.1 million) and the exact
same formula methodology was used to allocate funds
from one fiscal year to the next (FY 2009 and FY
2010). The new formula update for FY 2011 will be
available in June 2010. We will transmit the
updated information to States shortly thereafter.
See Attachment 3 for the portion of P.L. 111-117
that appropriates FY 2010 LIHEAP funds and
delineates the special provisions on the allocation
and use of these funds.
A table summarizing the FY 2010 LIHEAP funds is
shown below. For a summary of all LIHEAP regular
block grant allocations, see Attachment 4.
FY 2010 LIHEAP Regular block Emergency
APPROPRIATION Grant Contingency
Amount Appropriated $4,509,672,000 $590,328,000
Amount for $27,000,000
Leveraging/REACH
Amount for T & TA $300,000
Total -Leveraging, $27,300,000
REACH and T & TA
____________________________________________________
(Totals below exclude Leveraging and REACH)
Amount Available for $4,482,372,000 $590,328,000
Grantees
Amount Allocated to $4,482,372,000 $490,000,000
Grantees
Total FY 2010 Funds $4,972,372,000
Allocated to Grantees
Total FY 2010 Funds $100,328,000 (emergency
Remaining for contingency)
Allocation
Total FY 2010 Funds $5.1 billion
Appropriated
____________________________________________________
HHS allocated the $839,792,000 by (1) adding to
that figure the amount that triggers the New
Formula ($1.975 billion); (2) determining, through
the New Formula, the hypothetical State and
Territorial allocations under an appropriation at
this level ($2,814,792,000); (3) determining,
through the New Formula, the hypothetical State and
Territorial allocations under an appropriation of
$1.975 billion; and (4) subtracting the State and
Territorial allocations of $1.975 billion from the
State and Territorial allocations of
$2,814,792,000.
HHS allocated regular block grant funds to each
direct-funded Tribe and Tribal Organization by
deducting (setting aside) such funds from the gross
allocation(s) of the State(s) in which the Tribe's
low income households reside.
Uses of FY 2010 Block Grant Funds
With the exception of Provision Two, which allows
grantees to raise their income eligibility maximum
to a level at or below 75 percent of SMI, the
normal LIHEAP rules apply to the regular block
grant funds. Grantees may use these funds for any
purpose authorized under the LIHEAP statute
(including heating assistance, crisis assistance,
weatherization, administrative costs, Assurance 16
activities, and carryover).
Grantees must obligate at least 90 percent of the
regular block grant funds no later than September
30, 2010. Grantees may carry over up to 10 percent
of these funds into FY 2011.
Leveraging, REACH and T & TA
HHS plans to set aside $27 million for the
Leveraging and REACH programs. HHS awarded
$1,015,000 in REACH funds-based upon FY 2009 REACH
applications-shortly after passage of the first
Continuing Resolution in October. We plan to award
an additional $1 million of REACH funds-based upon
FY 2010 applications submitted by March 30, 2010.
Approximately $25 million will be issued under the
leveraging incentive program, based upon the
leveraging applications that were submitted in
accordance with LIHEAP-AT-2009-8.
HHS set aside the total $300,000 allowed for T&TA
activities. If less money is needed for this
purpose, HHS will redistribute the unused portion
to LIHEAP grantees under the regular block grant.
ATTACHMENTS: (1) A copy of the relevant portions of the Human
Services Reauthorization Act (P.L. 98-558)
(2) A copy of the relevant portions of Title XXVI
of the Omnibus Budget Reconciliation Act of
1981 (the Low-Income Home Energy Assistance Act
of 1981), as amended (P.L. 97-35)
(3) A copy of the relevant portions of the
Consolidated Appropriations Act, 2010 (P.L.
111-117)
(4) Regular LIHEAP Block Grant allocations of
$4,509,672,000 to States, Territories and
Indian Tribes/Tribal Organizations.
________________/s_______________
Nick St. Angelo
Director
Division of Energy Assistance
Office of Community Services
Attachment 1
98 STAT. 2878 PUBLIC LAW 98-558-OCT. 30, 1984
Public Law 98-558
98th Congress
An Act
Oct. 30, 1984
[S. 2565] To extend programs under the Head Start Act, and for
other purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, That this Act
may be cited as the "Human Services Reauthorization Act".
TITLE VI-LOW-INCOME HOME ENERGY ASSISTANCE
STATE ALLOTMENTS
SEC. 604. (a) Section 2604(a)(2) is amended to read as follows:
"(2) For purposes of paragraph (I), for fiscal year 1985 and
thereafter, a State's allotment percentage is the percentage
which expenditures for home energy by low-income households in
that State bears to such expenditures in all States, except that
States which thereby receive the greatest proportional increase
in allotments by reason of the application of this paragraph from
the amount they received 97 Stat. 871. pursuant to Public Law 98-
139 shall have their allotments reduced to the extent necessary
to ensure that-
"(A)(i) no State for fiscal year 1985 shall receive less
than the amount of funds the State received in fiscal year
1984; and
"(ii) no State for fiscal year 1986 and thereafter shall
receive less than the amount of funds the State would have
received in fiscal year 1984 if the appropriations for this
title for fiscal year 1984 had been $1,975,000,000, and
"(B) any State whose allotment percentage out of funds
available to States from a total appropriation of
$2,250,000,000 would be less than 1 percent, shall not, in any
year when total appropriations equal or exceed $2,250,000,000,
have its allotment percentage reduced from the percentage it
would receive from a total appropriation of $2,140,000,000."
(b) Section 2604(a) is amended by adding at the end thereof
the following new paragraph:
"(4) For the purpose of this section, the Secretary shall
determine the expenditure for home energy by low-income
households on the basis of the most recent satisfactory data
available to the Secretary."
Attachment 2
Title XXVI of the Omnibus Budget Reconciliation Act of 1981,
P.L. 97-35
LOW-INCOME HOME ENERGY ASSISTANCE ACT OF 1981
as amended
SHORT TITLE
Section 2601. This title may be cited as the "Low-Income Home
Energy Assistance Act of 1981".
HOME ENERGY GRANTS AUTHORIZED
Section 2602.
(e) There is authorized to be appropriated in each fiscal
year for payments under this title, in addition to amounts
appropriated for distribution to all the States in accordance
with section 2604 (other than subsection (e) of such section),
$600,000,000 to meet the additional home energy assistance
needs of one or more States arising from a natural disaster or
other emergency. Funds appropriated pursuant to this
subsection are hereby designated to be emergency requirements
pursuant to section 251(b)(2)(D) of the Balanced Budget and
Emergency Deficit Control Act of 1985, except that such funds
shall be made available only after the submission to Congress
of a formal budget request by the President (for all or a part
of the appropriation pursuant to this subsection) that
includes a designation of the amount requested as an emergency
requirement as defined in such Act.
DEFINITIONS
Section 2603. As used in this title:
(1) The term "emergency" means-
(A) a natural disaster;
(B) a significant home energy supply shortage or disruption;
(C) a significant increase in the cost of home energy, as
determined by the Secretary;
(D) a significant increase in home energy disconnections
reported by a utility, a State regulatory agency, or
another agency with necessary data;
(E) a significant increase in participation in a public
benefit program such as the food stamp program carried out
under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.),
the national program to provide supplemental security income
carried out under title XVI of the Social Security Act (42
U.S.C. 1381 et seq.) or the State temporary assistance for
needy families program carried out under part A of title IV
of the Social Security Act (42 U.S.C. 601 et seq.), as
determined by the head of the appropriate Federal agency;
(F) a significant increase in unemployment, layoffs, or the
number of households with an individual applying for
unemployment benefits, as determined by the Secretary of
Labor; or
(G) an event meeting such criteria as the Secretary, in the
discretion of the Secretary, may determine to be
appropriate.
(7) The term "natural disaster" means a weather event (relating
to cold or hot weather), flood, earthquake, tornado,
hurricane, or ice storm, or an event meeting such other
criteria as the Secretary, in the discretion of the Secretary,
may determine to be appropriate.
(9) The term "Secretary" means the Secretary of Health and Human
Services.
Section 2604.
(e) Notwithstanding subsections (a) through (d), the Secretary may
allot amounts appropriated pursuant to section 2602(e) to one
or more than one State. In determining whether to make such an
allotment to a State, the Secretary shall take into account
the extent to which the State was affected by the natural
disaster or other emergency involved, the availability to the
State of other resources under the program carried out under
this title or any other program, and such other factors as the
Secretary may find to be relevant. Not later than 30 days
after making the determination, but prior to releasing an
allotted amount to a State, the Secretary shall notify
Congress of the allotments made pursuant to this subsection.
Attachment 3
H.R.3288 (P.L. 111-117)
Consolidated Appropriations Act, 2010
SEC. 4. STATEMENT OF APPROPRIATIONS.
The following sums in this Act are appropriated, out of any
money in the Treasury not otherwise appropriated, for the
fiscal year ending September 30, 2010.
DIVISION D--DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND
EDUCATION, AND RELATED AGENCIES APPROPRIATIONS ACT, 2010
TITLE II
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Administration for Children and Families
low income home energy assistance
For making payments under subsections (b), (d), and (e) of
section 2602 of the Low Income Home Energy Assistance Act of
1981, $5,100,000,000, of which $4,509,672,000 shall be for
payments under subsections (b) and (d) of such section; and of
which $590,328,000 shall be for payments under subsection (e)
of such section, to be made notwithstanding the designation
requirements of such subsection: Provided, That all but
$839,792,000 of the amount provided in this Act for
subsections (b) and (d) shall be allocated as though the total
appropriation for such payments for fiscal year 2010 was less
than $1,975,000,000: Provided further, That notwithstanding
section 2605(b)(2)(B)(ii) of such Act, a State may use any
amount of an allotment from prior appropriations Acts that is
available to that State for providing assistance in fiscal
year 2010, and any allotment from funds appropriated in this
Act or any other appropriations Act for fiscal year 2010, to
provide assistance to households whose income does not exceed
75 percent of the State median income.
