Maryland increases energy assistance budget by $56M amid rising application demand

The Maryland General Assembly's Health and Human Services Committee meeting on February 27, 2025, spotlighted a significant boost in funding for the Office of Home Energy Programs (OHEP), with a proposed budget increase of $56 million, marking a 24.1% rise to a total of $288.2 million for fiscal year 2026. This funding surge aims to address the growing energy burden faced by Maryland households, particularly those with low incomes.

During the session, it was revealed 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 OHEP benefits were shown to effectively reduce these burdens by 28.8% for all households and 25.8% for those with high energy needs. However, concerns were raised regarding the Benefit Targeting Index, which decreased to 88, indicating that households with the highest energy burdens received 12% less benefit compared to the average household.

The committee also discussed the dramatic increase in energy assistance applications, which surged by 61.1% in fiscal year 2024, largely due to legislative changes that expanded eligibility criteria. Despite the increase in applications, the number of households receiving benefits did not rise proportionately, with only EUSP recipients seeing a 22.1% increase. The Department of Human Services (DHS) acknowledged challenges in processing these applications, leading to delays and a temporary halt in benefits for certain programs.

DHS officials highlighted ongoing efforts to improve program operations, including technology upgrades and enhanced communication with local agencies. They reported that approval rates for applications have improved significantly in 2025, with 74% of applications being approved compared to less than 40% in the previous year.

The meeting concluded with a commitment from DHS to continue monitoring application trends and expenditures, with plans to utilize any remaining funds for supplemental benefits if available at the end of the fiscal year. The committee's recommendations included requests for further data on energy assistance participation rates and application processing times to ensure that vulnerable populations receive the support they need.