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Office of Home Energy Programs sees surge in applications, budget changes and system strain
Summary
DLS and DHS discussed a 24.1% fiscal 2026 increase for the Office of Home Energy Programs driven largely by Strategic Energy Investment Fund (RGGI) allocations, a 61.1% jump in applications after eligibility changes, early exhaustion of some benefit lines in 2024, and call-center and processing improvements underway.
The Office of Home Energy Programs (OHEAP) presented operations and fiscal 2026 budget pressures to the HHS Subcommittee, with DLS noting higher application volume after eligibility changes and DHS describing administrative and system fixes to address backlogs.
Subeksha Bujal of the Department of Legislative Services told the panel the fiscal 2026 OHEAP budget increases by $56 million (24.1%) to $288.2 million, primarily due to an increase in Strategic Energy Investment Fund (SEIF/RGGI) allocations. DLS reported that 94% of the OHEAP budget supports energy assistance benefits and highlighted a proposed deficiency appropriation totaling $30.9 million for fiscal 2026, of which $22.2 million is LIHEAP federal funds and $8.7 million is special funds. DLS also noted that Electric Universal Service Program (EUSP) surcharge revenue budgeted for fiscal 2026 exceeded statutory annual maximum collections and asked DHS to explain funding coverage for deficiency appropriations.
DLS noted a 61.1% increase in applications for energy assistance in fiscal 2024 after Chapter 207 (2023) raised income eligibility thresholds and implemented categorical eligibility; the office paused issuance of some benefits in April 2024 when federal funds were exhausted and updated benefit levels in fiscal 2025 to spread assistance across more households. Exhibit figures presented by DLS show that average benefit sizes fell in fiscal 2025 compared with 2024 and that recipients of some programs (e.g., gas arrearage assistance) declined because of program limits, prior receipt rules and a reduced maximum arrearage benefit.
Carnita White, Principal Deputy Secretary for DHS, and Courtney Thomas Winterberg, acting director for OHEAP, described steps taken after a surge of nearly 243,252 applications in 2024: local-site visits to 20 administering agencies, system upgrades, expanded access to a customer relationship management tool and staff training. White said processing rates and denial rates have improved in 2025, noting that year-to-date approvals reached 74% and denial rates dropped to below 25% from a 2024 spike above 50% for some programs.
DHS acknowledged call-center and fulfillment cost pressures linked to Medicaid redeterminations and mailed notice changes, and said it is monitoring administrative expenses and working with vendors to improve answer rates. DHS confirmed it does not expect additional LIHEAP funding from the federal government and is reviewing options for potential supplemental benefits if funds remain.
DLS recommended committee narrative and reporting requirements related to processing times, denial rates and performance measures; DHS concurred with several recommendations and disagreed in part with requested reductions to communications funding, arguing the fiscal 2026 amounts are needed to cover required mailings.
