[Congressional Record Volume 141, Number 199 (Thursday, December 14, 1995)]
[Senate]
[Pages S18588-S18589]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                                 LIHEAP

  Mr. JEFFORDS. Mr. President, as my colleagues know, it is cold 
outside. This morning in my home State of Vermont it was minus one 
degree in Burlington, minus 9 degrees in our capital city of Montpelier 
and in the Northeast Kingdom, there were 18 inches of snow on the 
ground. This weekend the temperature fell below zero in Minnesota. It 
was 20 degrees in Delaware and it has even dropped to below freezing in 
Atlanta, GA.
  With these cold temperatures, and the subfreezing days that are sure 
to follow, one has to wonder how nearly 6 million low-income American 
families are going to make it through the winter. In past years, the 
Low-Income Home Energy Assistance Program [LIHEAP] has provided aid to 
these families.
  LIHEAP is a block grant provided to the States that help low-income 
Americans with an average income of $8,000 heat their homes. This year 
however, states have not received sufficient funds to meet the needs of 
their low-income citizens.
  Since we have yet to pass a fiscal year 1996 appropriations bill for 
the Departments of Labor, Health and Human Resources, and Education, 
LIHEAP has been funded by the two continuing resolutions [CR's] that we 
have passed and the President has signed. These two CR's funded LIHEAP 
at 90 and 75 percent of last year's level respectively, but, and this 
is the key, the CR's limited LIHEAP spending to the proportional daily 
rate of the duration of the CR.
  This cap on the spend-out rate means that States have received only 
75 days' worth of funds. In past years States received 60 percent of 
their allotments in the first quarter. This year, they have received 
only slightly greater than 20 percent. The vast majority of LIHEAP 
funds are used for heating assistance. Requiring that LIHEAP funds be 
spent out evenly throughout the year makes no sense. While it may leave 
LIHEAP funds available in June, many low-income families would not be 
able to heat their homes this winter.
  Last year at this time, the Department of Health and Human Services 
had dispersed around $800 million to the States. So far this year, 
States have received only $230 million. As Senator Kennedy pointed out 
yesterday, LIHEAP funds were to be reduced by 10 or 25 percent, not 70 
percent.
  What has this meant in Vermont? Instead of the $4.5 million we had 
received last year by this time, Vermont has received only $1.3 
million. This is not enough to meet the needs of the 25,000 low-income 
Vermonters who rely on LIHEAP to avoid freezing in the winter. Gov. 
Howard Dean has had to delay the start of this year's program until 
December, and I can assure my colleagues that it can get quite cold in 
Vermont in October and November.
  I think it is fairly clear that we are not going to be able to pass 
all the remaining appropriations bills by the end of this week, so we 
are going to have to take up another CR. It is critical that this CR 
not include the spend-out limitation on LIHEAP. Last week Senator 
Kennedy and I sent a letter to Appropriations Committee, Mark Hatfield, 
asking him to address this problem.
  Fifty-two other Senators, Republicans and Democrats joined us in 
signing this letter, and although the Northeast/Midwest Senate 
Coalition, which I cochair, coordinated the effort, Senators from all 
over the Nation cosigned. I ask unanimous consent that a copy of this 
letter along with the 54 Senators who cosigned the letter be printed in 
the Record following my remarks.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  (See exhibit 1.)
  Mr. JEFFORDS. Although most Senators who signed the letter would like 
to see LIHEAP increased, the letter does not ask for additional LIHEAP 
funding. It simply asks that States be allowed to spend the LIHEAP 
funds that have been appropriated under the two CR's this winter when 
the funds are needed. There are similar efforts being undertaken in the 
House. In addition to Senator Kennedy, I want to thank Senators 
Abraham, Cohen, Snowe, Moynihan, Kohl, Leahy, and Wellstone for their 
assistance in gathering support for this letter. I also want to thank 
Senator Specter for his continued support of LIHEAP. I think we have 
made it very clear that this spend-out restriction cannot be included 
in the next CR.
  Mr. President, LIHEAP is a lifeline for many seniors and families 
with small children, and cutting LIHEAP will drastically increase the 
energy burden of many American families. Some Members of the House have 
argued that LIHEAP is no longer needed, but for many low-income 
Americans, the energy crisis is not over. In some areas of the country, 
energy prices are still increasing; in Vermont over the last 3 years, 
prices have gone up 21 percent. Since 1980 however, real LIHEAP funding 
has gone down 65 percent.
  In fact, no other discretionary formula grant program has seen its 
funding reduced as much as LIHEAP. The Congressional Research Service 
[CRS] performed a study of energy prices and LIHEAP funding. CRS 
concluded that, even taking changes in real energy prices into account, 
LIHEAP would have to be funded at between $1.75 and $2.39 billion to 
provide the same level of benefits as it did in 1980. 

[[Page S18589]]

  Last year, over 25,000 low-income Vermonters received a total of $7.5 
million in assistance. The average amount was $75 a month for the 5 
winter months. The average AFDC recipient only has $43 a month left 
over after paying the energy bill. Without LIHEAP assistance, many 
recipients will not be able to afford to pay their heating bills this 
winter, and many would be forced to choose between heat and food.
  As I stated earlier, LIHEAP is a block grant. Each State decides for 
itself how to structure its program and how to get the resources to 
those that need it. It is also a program that has no history at all of 
any fraud or abuse. Without LIHEAP energy providers, many of whom are 
small, unregulated businesses, may have to choose between not getting 
paid for the energy they provide and cutting off their neediest 
customers.
  Mr. President, winter is upon us. People are freezing. We must free 
up LIHEAP funds so that low-income Americans will be able to heat their 
homes this winter. We must remove the spend out rate limitation.

                               Exhibit 1


                                                  U.S. Senate,

                                Washington, D.C, December 5, 1995.
     Hon. Mark Hatfield,
     Appropriations Committee, The Capitol,
     Washington, DC.
       Dear Chairman Hatfield: We would like to call your 
     attention to a serious problem with the interim funding for 
     the Low Income Home Energy Assistance Program (LIHEAP). We 
     believe that if we are to continue funding programs under the 
     FY96 Labor/HHS Appropriations bill through a Continuing 
     Resolution (CR), states must be allowed to draw down LIHEAP 
     funds at a higher rate which takes into account their 
     historical spending practices and which is sufficient to 
     ensure the program's viability. Temperatures have dropped 
     below freezing and there is snow on the ground in many parts 
     of the country, but the language in both CRs that limits 
     state draw downs to a proportional annual rate does not 
     provide states sufficient funds to operate programs and meet 
     the heating needs of their low income families.
       In past years, states have drawn down a majority of their 
     LIHEAP funds during the fall. This allows states to purchase 
     fuel at lower rates, maintain continuity of service, avoid 
     shut offs, and plan for the upcoming winter. Furthermore, 
     nearly 90 percent of LIHEAP funds are used for heating 
     assistance during the coldest months. The CR language 
     requires that LIHEAP funds be spent out over a twelve month 
     period. While this may leave funds for heating assistance in 
     June, many low income families may not be able to heat their 
     homes this winter.
       We believe it is critical to safeguard this program which 
     protects the elderly, the disabled, the working poor, and 
     children. When it gets cold, these vulnerable Americans 
     should not be forced to choose between heating and eating. 
     Continuing delays in funding and limits on the payout rate 
     will hamper states' ability to help the 5.6 million LIHEAP 
     households survive the winter. We ask your assistance in 
     ensuring that the bulk of LIHEAP funds can be spent during 
     the cold weather months at a rate sufficient to meet the 
     needs of low income families this winter. Thank you.

           Sincerely,
         Jim Jeffords, Ted Kennedy, Herb Kohl, Bill Cohen, Paul D. 
           Wellstone, Daniel P. Moynihan, Patrick Leahy, Olympia 
           Snowe, Carl Levin, Christopher J. Dodd, John F. Kerry, 
           Larry Pressler, Wendell Ford, Rick Santorum, Claiborne 
           Pell, Alfonse D'Amato, Spencer Abraham, Carol Moseley-
           Braun, Byron L. Dorgan, John H. Chafee, Paul Simon, 
           Dick Lugar, J. Lieberman, Frank R. Lautenberg, Tom 
           Daschle, Bob Kerrey, Tom Harkin, John Glenn, Jeff 
           Bingaman, Max Baucus, Bob Smith, Paul Sarbanes, Dale 
           Bumpers, Jay Rockefeller, Jim Exon, Howell Heflin, Russ 
           Feingold, Daniel K. Akaka, Harry Reid, Dan Coats, 
           Richard H. Bryan, David Pryor, Joe Biden, Patty Murray, 
           Mitch McConnell, Ben Nighthorse Campbell, Judd Gregg, 
           Mike DeWine, Bill Bradley, Barbara A. Mikulski, Kent 
           Conrad, Chuck Robb, D.K. Inouye, Chuck Grassley.

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