The White House announced on Wednesday that it will make US$13.5 billion available to help low-income American households reduce their heating expenditures this winter.
US President Joe Biden’s administration is unlocking US$4.5 billion through the Department of Health and Human Services for low-Income Home Energy Assistance Program funding. Separately, the Department of Energy will spend US$9 billion from the Inflation Reduction Act funding to assist up to 1.6 million households in improving their houses to reduce energy expenses.
According to the White House, the new financing would assist Americans with heating costs, unpaid utility bills, and repairs to home energy appliances that will help cut their energy costs.
Families are already struggling to pay their electric and gas bills, with around one in every six U.S. households in arrears, according to October estimates from the National Energy Assistance Directors Association. Based on the agency’s estimates, US families are approximately $16.1 billion delinquent on their utility bills.
The US Energy Information Administration (EIA) predicts that the average household will spend $931 on gas heat this winter and $1,359 on electric heat. This represents a 28% increase for gas and a 10% increase for electric over the previous year.
Further, homes using heating oil will spend roughly $2,354 for heat this winter, up 27% from last year, while propane users’ expenses will jump 5% to $1,668.
Natural gas or electricity is used to heat almost 90% of the approximately 130 million US households.
Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.