[Congressional Record Volume 143, Number 8 (Tuesday, January 28, 1997)]
[Senate]
[Page S703]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                                 LIHEAP

  Mr. KENNEDY. Mr. President, on the issue others have spoken to, I 
want to add my strong voice in hope and anticipation of the President's 
release of these emergency LIHEAP funds to help the families in the 
Northeast and Midwest. I think all of us have understood the 
extraordinary hardships and loss of lives that are affecting people in 
the Midwest, and people are hurting in my part of the country, in the 
Northeast, as well, with the soaring heating bills this winter.
  The reduced benefit levels and the skyrocketing prices of home 
heating oil have been a double whammy for the 5 million low-income 
families nationwide who receive LIHEAP assistance.
  Federal funding for LIHEAP is already near an all-time low--listen to 
this, Mr. President--down from $2.1 billion in 1985 to $1 billion 
today. In Massachusetts, Federal fuel aid has declined from $87 million 
to $41 million over that same period, about half of the resources in 
dollars. When you measure it out in terms of inflation, it is even less 
than that. When we see what has happened to the cost of home heating 
oil, we will see that people are in dire straits.
  Local fuel assistance directors have been successful in past years in 
stretching the limited LIHEAP funds to serve as many needy families as 
possible. This winter, however, low stocks have sent heating oil prices 
through the roof, causing excessive hardships to LIHEAP recipients 
across the Nation.
  According to the Massachusetts Division of Energy Resources, the cost 
of home heating oil has risen 20 percent, and, in some communities, 
considerably higher, from some 95 cents a gallon in December 1995, to 
over $1.15 today. Despite the oil companies' efforts to bring their 
inventories to last year's levels, heating oil prices still remain high 
because of increased world demand.
  This rise in heating oil prices has imposed a heavy burden on low-
income families, many of whom must devote a significant portion of 
their limited resources to paying their energy bills.
  Who are these families, Mr. President? Forty-three percent of the 
recipients for the LIHEAP program are elderly or disabled citizens. 
They spend an average of 19 percent of their income to keep their homes 
warm in the winter, whereas middle-income families devote 4 percent.
  That is who we are talking about: elderly people, the neediest people 
who are living and affected by this colder climate, are spending way 
out of proportion of their income in order to just remain warm.

  The AFDC recipients spend as much as 25 percent of their income for 
home heating. At the same time, these families are hard pressed and 
struggle to pay their bills for food, rent, and health care.
  A decade ago, LIHEAP assistance could sustain a low-income family 
through an entire winter, purchasing as much as 750 gallons of heating 
oil. Today, the higher cost of heating oil and the lower benefit levels 
will only purchase a third of that amount. Some 10 years ago, there was 
the ability to address this issue for the neediest families for the 
winter and now a third of the winter, even with these resources that 
would be available.
  Many local fuel assistance directors are already planning for the 
worst. According to Jim Murphy, whose TRI-CAP Community Action Program 
serves 1,500 clients in Malden, MA, over 40 percent will be without any 
heating assistance at the end of next week unless emergency funds are 
provided.
  Other communities in Massachusetts are facing a similar crisis. In 
Boston, as many as 2,000 families, out of 13,000 served by LIHEAP, have 
run out of heating oil. An additional 4,500 households will be at risk 
in the next few weeks. We are talking the next 2 to 3 weeks.
  In economically distressed towns like Gloucester, many working 
families involved in the fishing industry have already exhausted their 
annual benefits. According to Eliott Jacobson, chairman of the New 
England Energy Directors Association, charities are being tapped for 
additional assistance 2 months ahead of schedule, taxing their limited 
resources to serve the community.
  Clearly, without an immediate release of emergency funds, little 
relief is in site for these families. If another cold spell strikes, 
even more families will be without protection.
  As we mentioned, 49 Senators wrote to the President last week 
requesting the release of the emergency LIHEAP funds before more cold 
weather grips the country. This year, $420 million in emergency funds 
could be made available at the President's discretion. The letter sent 
to the President Thursday requested $300 million of that amount. I hope 
all of my colleagues will support this necessary action and will 
support action by the President to respond to these very important and 
critical needs.

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