Committee considers raising LIHEAP crisis cap to $800 amid rising disconnect amounts

Senator Ashley Spivey presented LB1033 to increase the Low Income Home Energy Assistance Program (LIHEAP) crisis-assistance cap from $500 to $800 per eligible household per program year, aiming to reflect higher real-world disconnect and reconnection amounts and to reduce administrative waiver burdens.

The sponsor said Nebraska receives roughly $40 million annually in federal LIHEAP funding and currently holds a surplus (reported around $3.4 million), with crisis assistance representing a relatively small share of the overall block grant. Raising the standard cap would reduce the number of waiver requests for amounts between $500 and $800, the sponsor argued, thereby lowering administrative workload and keeping the program compliant with the federal administrative-cost cap of 10%.

Utility and nonprofit witnesses supported the bill. Omaha Public Power District said average field disconnect amounts rose to $749 in recent data (up from $471 in 2022) and urged raising the cap to prevent service loss. United Way of the Midlands and local nonprofit partners said requests for utility help are a consistent high share of their client contacts and that raising the cap would stabilize households at imminent risk of shutoff. Witnesses reiterated that LIHEAP payments are made directly to utility providers, not to families.

Committee members questioned whether $800 would be sufficient given year-over-year increases and whether any state general-fund liability would follow; the sponsor reiterated that LB1033 uses federal block-grant funds and offered to consider a higher cap amendment if members preferred.

The committee closed LB1033 for the day with online comments recorded (19 proponents, 8 opponents). No vote was taken.