Maryland increases energy assistance budget by $56 million for fiscal 2026

The recent Health and Human Services (HHS) Committee session held on February 27, 2025, highlighted significant developments in Maryland's energy assistance programs, particularly the Office of Home Energy Programs (OHEP). The proposed fiscal 2026 budget for OHEP reflects a substantial increase of $56 million, or 24.1%, bringing the total budget to $288.2 million. This increase is primarily attributed to the strategic energy investment fund, which aims to alleviate the energy burden faced by low-income households.

During the session, it was reported that the average energy burden for households receiving assistance was 9.1%, with high-energy burden households facing an even steeper average of 13.6%. The benefits provided by OHEP have been effective in reducing these burdens by 28.8% for all households and 25.8% for those with high energy burdens. However, concerns were raised regarding the benefit targeting index, which decreased to 88, indicating that households with the highest energy burdens received 12% lower benefits compared to the overall average.

The committee also discussed the significant increase in energy assistance applications, which surged by 61.1% in fiscal year 2024. This rise is largely due to legislative changes that expanded eligibility criteria, allowing more households to qualify for assistance. Despite the increase in applications, the number of households receiving benefits did not see a proportional rise, particularly in the gas assistance program, which faced funding exhaustion in April 2024.

The Department of Human Services (DHS) was urged to provide clarity on the processing times for applications and the reasons behind the decline in gas assistance recipients. Additionally, the committee recommended adopting a narrative to request data on energy assistance participation rates among vulnerable populations, emphasizing the need for transparency and accountability in the program's operations.

As the session concluded, the committee acknowledged the ongoing challenges faced by OHEP, including operational inefficiencies and communication gaps with local agencies. DHS officials reported efforts to enhance program operations, including technology upgrades and improved training for local agencies, which have led to a higher approval rate for applications in 2025.

The discussions from this meeting underscore the critical role of energy assistance programs in supporting Maryland's low-income households amidst rising energy costs. As the state moves forward, the effectiveness of these programs will depend on continued oversight, adequate funding, and responsive adjustments to meet the needs of the community.