Despite Federal Uncertainty, Connecticut Moves Ahead With Low-Income Energy Program That Serves 100,000 Households

by Karla Ciaglo CTNewsJunkie

Connecticut’s largest home heating assistance program will move forward this winter with expanded benefits and new pricing rules for fuel vendors — even as state officials brace for continued uncertainty out of Washington.

At a joint hearing last week of the Appropriations, Energy and Technology, and Human Services committees, Department of Social Services Commissioner Andrea Barton Reeves outlined the state’s $89.2 million Low Income Home Energy Assistance Program (LIHEAP) plan for the 2026 federal fiscal year.

The program, which helps low-income residents afford winter heating, is expected to serve more than 100,000 households. That number is about 5% more than last year. It is funded primarily through an $81.7 million federal block grant, with an additional $7.2 million in carry-forward funds and $225,000 in refunds.

The plan raises the basic benefit by $115 for all eligible households. For the lowest-income families that rely on deliverable fuels like oil and propane, total assistance this winter could reach $1,920 — made up of a $645 base benefit and three crisis payments of $425 each.

A challenge for officials is that the federal landscape has become increasingly unstable. In April, Connecticut lawmakers condemned a sweeping round of federal layoffs under the Trump administration that eliminated the entire LIHEAP staff at the U.S. Department of Health and Human Services. While Congress has not reduced the program’s funding, the loss of personnel has left states without a clear federal point of contact for guidance or oversight.

“It’s very hard to predict what’s going to happen with the program,” Barton Reeves said. “I know the president’s budget has suggested it would be eliminated altogether. We really are just continuing to administer the program with what we have in front of us right now.”

She added that while federal offices are currently unstaffed, DSS has been provided with an email address for communication.

Deputy DSS Commissioner Peter Hadler said that although the block grants are still flowing, the state is operating without direction from Washington.

“We still have to comply with federal regulations, whether or not there are staff in Washington to answer the phone,” he said.

Hadler noted that the department held on to surplus funds from last winter, when mild temperatures reduced heating demand. That created a cushion for the months ahead.

Barton Reeves added that rental assistance levels will remain flat this year to support the across-the-board increase in basic benefits.

“We believe this will allow us to meet whatever the demand might be,” she said.

Several lawmakers asked DSS how the state can protect vulnerable residents if federal dollars run out midseason. Sen. Cathy Osten, D-Sprague, warned against “taking pennies from the poorest of the poor,” noting that many already keep their thermostats dangerously low.

“Many people keep their heat just like I do, at 61 degrees,” she said. “So it’s not like they’re keeping it at 90 and overusing their benefits. They’re trying as much as possible to keep their house at a level that does not freeze their pipes. How much more can we take away from people that don’t have anything?”

Other legislators called for stronger outreach to ensure eligible households apply and suggested integrating LIHEAP with the state’s low-income utility discount programs. Hadler said that would require legislation and improved data-sharing agreements with utilities.

The plan also introduces several operational upgrades aimed at making the program more efficient and attractive to fuel vendors. Fuel suppliers will now be paid within 10 days of delivery, which is a faster turnaround designed to improve cash flow and vendor satisfaction. Enrollment also is being modernized, with a new online portal replacing older, paper-based systems.

One of the most significant changes is the overhaul of how the state reimburses fuel vendors. In the past, payments were based on broad county-level pricing estimates that often didn’t reflect real-time market conditions. Under the new system, vendors will be paid using two formulas: one based on a fixed discount from the retail price, and the other using a set margin above the wholesale “rack” price, which is the cost fuel suppliers charge vendors.

Officials say this approach is not only more accurate but also more transparent and fair, which they hope will encourage broader participation from vendors across the state. Barton Reeves described the new structure as a “more responsive system” that can better adapt to price fluctuations and local market differences.

Weatherization assistance will also continue, with $500,000 reserved to help remove barriers to energy-efficiency upgrades in partnership with the Department of Energy and Environmental Protection.