Delayed heating assistance kicks off a winter of energy challenges

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The longest-ever government shutdown has ended, but its impacts on everyday Americans are still trickling out.

After weeks of shutdown-induced delays, the U.S. Department of Health and Human Services in late November finally released $3.6 billion in Low-Income Home Energy Assistance Program funding. The program helps millions of households cover heating costs, and in years past has been sent out in early November. The delay forced several states to pause their disbursal of heating-assistance funds to residents.

That delay has undeniably hurt low-income families, as most LIHEAP recipients also rely on other federal assistance programs, like SNAP and WIC, that were paused during the shutdown. A more existential threat to LIHEAP may still be on the horizon: In its 2026 budget, which Congress has yet to pass, the Trump administration aims to end the program and ​“to instead support low-income individuals through energy dominance, lower prices, and an America First economic platform.”

But those lower prices are nowhere to be seen. The National Energy Assistance Directors Association estimates that home heating costs will rise by about 7.6% this winter, growing faster than the rate of inflation. Rural families who rely on trucked-in propane and gas deliveries could be hit particularly hard, the Daily Yonder reports.

The Trump administration is also targeting other programs that could help the situation. Earlier this year, the EPA considered ending or privatizing the Energy Star program, which helps buyers pick energy-efficient appliances over more costly options. While the EPA ended up renewing contracts with the consulting firm that manages the program in November, Energy Star’s fate is still uncertain, E&E News reports.

Then there’s the U.S. Department of Energy’s proposal to eliminate all funding for the Weatherization Assistance Program in its 2026 budget. WAP has helped millions of low-income families make energy-efficient home improvements throughout its 50-year lifespan.

These programs have all delivered on their affordability promises — and in Energy Star’s case, with minimal federal investment. The Institute for Market Transformation estimates the program has helped Americans save $40 billion on their energy bills each year but cost the federal government just $32 million to operate in 2024. Every dollar of WAP funding, meanwhile, delivers $1.72 in energy benefits plus another $2.78 in health and other benefits — a pretty clear bang for the federal government’s buck.

More big energy stories

Gas pipelines find unlikely allies in the Northeast

New York and New England governors once led the nation in phasing out fossil fuels. But as heating costs rise this winter, some Democratic leaders are pivoting back to gas. Just last month, New York paused its groundbreaking ban on gas hookups in new construction, while Massachusetts considered — but ultimately rejected — moves that would have weakened progress on all-electric buildings.

Even some clean energy victories have come with concessions for fossil fuels. After the Trump administration lifted its stop-work order on the Empire Wind offshore project, New York officials authorized a gas pipeline they had rejected three times before, though Gov. Kathy Hochul (D) denied it was a quid pro quo. And when Revolution Wind faced a federal stop-work order of its own, Connecticut Gov. Ned Lamont (D) proposed a deal involving gas to get things rolling again.

Trump targets Biden-era fuel economy rules

President Donald Trump is taking aim at the Biden administration’s ambitious fuel economy regulations. The rules put in place in 2022 require light-duty passenger cars and trucks to average 50.4 miles per gallon by the 2031 model year. This new change would lower the standard to about 34.5 mpg — essentially the same level that was in place during Trump’s first term.

In a statement, the White House called the Biden-era regulations an ​“EV mandate” that would’ve raised the cost of a new car by as much as $1,000. But analysts told Politico that weakening fuel standards won’t make cars cheaper in the short term. The Biden administration rules were also anticipated to save drivers a combined $35 billion in fuel costs over the lifespan of their vehicles.

Clean energy news to know this week

Greece’s coal-to-solar sprint: Greece is rapidly abandoning coal power while scaling up solar generation, but in the mining region of Western Macedonia, the economy hasn’t kept up. (Canary Media)

The war on the war on coal: More than 20 years in, the Sierra Club’s Beyond Coal campaign has quietly helped retire hundreds of coal-fired power plants in the U.S., but it faces a new era of challenges as the Trump administration looks to revive the coal industry. (Canary Media)

Backing up small nuclear: The DOE awards $400 million to the Tennessee Valley Authority to build a small modular reactor in Tennessee and another $400 million for Holtec to build two SMRs at the Palisades nuclear plant in Michigan. (news release)

What’s next for FirstEnergy? Ohio utility regulators order FirstEnergy to pay about $250 million for violations related to the state’s power plant bailout scandal, including $186 million that will be returned to ratepayers, though consumer advocates say harsher penalties are still necessary. (Canary Media)

Coal’s mounting cost: Trump administration orders to keep a large Michigan coal plant open beyond its May 31 retirement date have now cost utility customers about $113 million. (The Guardian)

Methane meltdown: The EPA will delay enforcement of a Biden-era requirement that oil and gas companies limit methane emissions — and may repeal the measure altogether. (New York Times)

Clean conversions: A provision of Illinois’ clean-energy law paved the way for utility programs that have helped hundreds of residents replace their gas appliances with electric alternatives at no cost. (Canary Media)

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