Kentucky witnesses outline LIHEAP benefits, warn federal funding may be at risk

A presenter for the cabinet told legislators the Low Income Home Energy Assistance Program (LIHEAP) had spent about $46.9 million in fiscal year 2026 and that the state is forecasting roughly $54 million for 2027, but said the program is "100% federally funded" and its future depends on Congressional appropriations in October.

Lawmakers heard that LIHEAP in Kentucky splits benefits between a fall subsidy — a one-time credit aimed at seniors and people on fixed incomes — and a crisis component that pays the minimum necessary to prevent or resolve a service disconnect. The presenter said the average subsidy benefit is about $160 and emphasized the benefit is a one-time credit, not a recurring monthly payment.

Committee members pressed program staff on program rules and limits. Staff said a past‑due notice can be used for crisis applications if the utility will issue one, and that subsidy applications are accepted each year while crisis assistance can be applied for multiple times up to component caps (for electricity the presenter cited a typical $400 cap). The presenter also noted that federal rules allow states to redirect up to 15% of LIHEAP funds to weatherization.

Kentucky’s weatherization work is managed in partnership with the Kentucky Housing Corporation (KHC), which the presenter said combined multiple funding sources to weatherize 272 homes between July 25 and May 31, with an average combined investment of about $11,000 per household. The presenter explained weatherization measures must meet a Department of Energy savings‑to‑investment ratio; cheaper fixes like air sealing and insulation typically meet that test in Kentucky, while costly window replacement often does not.

Rick Baker of the Community Action Kentucky network described the on‑the‑ground delivery model: 23 community‑action agencies operate across 120 counties using a common intake/tracking system, and their tripartite local boards (elected officials, low‑income representatives, private‑sector members) govern operations. Baker said community action agencies can braid weatherization and bill‑payment funds to reach more households.

Several legislators warned that pandemic-era ARPA and CARES funds used to support spring and summer cooling programs are dwindling and that continuation of those cooling components will depend on future federal appropriations. Representative Moore asked members to reach out to the federal delegation about proposals in the presidential budget that would eliminate LIHEAP.

The committee voted to approve the findings of fact included in members’ packets before moving on to other items.