Tax & Finance

Proposed Reallotment of Fiscal Year 2025 LIHEAP Funds to Eligible Recipients

🇺🇸United States··Notice·Medium Impact·View source ↗

AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.

🇬🇧 English

The Administration for Children and Families, Office of Community Services (ACF OCS) has issued a preliminary determination that unspent Low Income Home Energy Assistance Program (LIHEAP) funds from fiscal year 2025 are available for reallocation. This includes both FY25 annual LIHEAP funds and FY24 and FY25 funds appropriated under the Infrastructure Investment and Jobs Act (IIJA) that eligible recipients were unable to obligate or carry forward into FY26. The reallotment process allows these unused federal funds to be redistributed to states, territories, federally recognized tribes, and tribal organizations that received direct FY26 LIHEAP awards. This ensures that energy assistance funding intended for low-income households does not go unspent but is redirected to recipients capable of deploying it. Importantly, only direct FY26 LIHEAP award recipients are eligible to apply for these reallocated funds. Subrecipients of those entities — such as local agencies or nonprofits that receive LIHEAP funds through a state or tribe — are explicitly excluded from applying. This restricts the pool of eligible applicants to primary grant holders only.

AI-generated summary. May contain errors. Refer to official sources for legal decisions.

Key Changes

  • ACF OCS issues preliminary determination that unobligated FY25 LIHEAP annual funds are available for reallotment
  • FY24 and FY25 Infrastructure Investment and Jobs Act (IIJA) LIHEAP funds that could not be carried over are included in the reallotment pool
  • Eligible applicants restricted exclusively to entities that received direct FY26 LIHEAP awards (states, territories, tribes, tribal organizations)

+ 3 more changes with Pro

Obligations

What this law requires

high

Only direct FY26 LIHEAP award recipients may apply for reallocated FY25 and IIJA funds; subrecipients and other entities are prohibited from submitting applications

States, territories, federally recognized tribes, and tribal organizations
prohibition
high

ACF OCS must make a final determination regarding availability of unspent FY25 LIHEAP funds for reallocation based on preliminary determination findings

Administration for Children and Families, Office of Community Services (ACF OCS)
operational
medium

Eligible recipients must identify and report unobligated or uncarried-forward FY24 and FY25 IIJA appropriated funds that are available for reallocation

States, territories, federally recognized tribes, and tribal organizations with FY26 direct LIHEAP awards
reporting
high

Reallocated funds must be distributed only to direct FY26 LIHEAP award recipients, excluding any pass-through or downstream recipients

Administration for Children and Families, Office of Community Services (ACF OCS)
operational
medium

Applicant entities must demonstrate capability to obligate and deploy reallocated energy assistance funds to eligible low-income households

States, territories, federally recognized tribes, and tribal organizations applying for reallocated funds
operational

Affected Parties

U.S. state governments with direct FY26 LIHEAP awardsU.S. territories with direct FY26 LIHEAP awards+4 more…

Tags

LIHEAP,energy assistance,low-income households