Maryland increases energy assistance budget by $56 million amid rising demand

The Maryland General Assembly's Appropriations Committee convened on March 3, 2025, to discuss the Office of Home Energy Programs (OHEP) and its budget for fiscal year 2026. The meeting highlighted a significant budget increase of $56 million, or 24.1%, bringing the total to $288.2 million. This increase is primarily attributed to the strategic energy investment fund revenues allocated for energy assistance.

Savick Shah Bujal from the Department of Legislative Services presented data indicating that the average energy burden for households receiving assistance was 9.1%, with higher burdens for vulnerable populations. The committee expressed concerns over a decrease in the benefit targeting index, which suggests that households with the highest energy burdens received lower benefits compared to previous years. The Department of Human Services (DHS) was asked to explain this trend and the implications for low-income households.

The committee also discussed the rising number of applications for energy assistance, which surged by over 61% in fiscal year 2024, largely due to legislative changes that expanded eligibility. However, the number of households receiving benefits did not increase proportionately, raising questions about the efficiency of the application processing system. DHS officials acknowledged operational challenges and delays in benefit issuance, which were exacerbated by a lack of resources and communication.

In response to these issues, DHS outlined several strategic actions taken to improve operations, including upgrading technology and enhancing training for local agencies. They reported a reduction in application denial rates and improved processing times in 2025 compared to the previous year.

The committee recommended several actions, including restricting funds pending further reports on application processing times and denial rates. DHS agreed to provide the requested data and emphasized their commitment to maximizing available resources for energy assistance.

Overall, the meeting underscored the critical need for effective energy assistance programs in Maryland, particularly as energy costs continue to rise. The committee's recommendations aim to ensure that vulnerable populations receive the support they need while addressing operational inefficiencies within the OHEP.