Office of Home Energy Programs sees 24% budget jump as applications surge; DHS cites operational fixes

The Health and Social Services Subcommittee reviewed the Department of Human Services’ Office of Home Energy Programs (OHEP) budget, which DLS said increases by $56.0 million (24.1 percent) to $288.2 million for fiscal 2026.

DLS analyst Savick Shah Bujal summarized program data and concerns, citing a 61.1 percent increase in applications in fiscal 2024 after Chapter 207 of 2023 expanded eligibility and implemented categorical eligibility and automatic enrollment for certain benefit recipients. DLS recommended committee narrative requesting additional data on participation by vulnerable populations and recommended restricting some funds pending a report on application processing times and denial rates.

Nut graf: Why it matters

The budget and administration of energy assistance affect low‑income households directly; rapid increases in demand, reductions in per‑household benefit levels, and pauses in payments in 2024 prompted legislative requests for data and prompted DHS to commit to operational changes.

What DHS told lawmakers

Principal Deputy Secretary Carnita White and OHEP acting director Courtney Thomas Winberg described actions taken after the surge in applications: more than 243,252 applications in 2024; 20 on‑site visits with local administrating agencies; system upgrades; expanded customer‑relationship management tools; training and standardized procedures; and new automation to reduce manual reviews. DHS reported it had adjusted benefit levels to stretch available funds and had introduced a new crisis benefit for winter 2025.

Key program and budget details

- Allowance and deficiency: DLS reported a fiscal 2026 allowance of $288,200,000, a $56,000,000 increase primarily driven by a $55.6 million boost in Strategic Energy Investment Fund (CIF/RGGI) revenues. DLS noted a proposed fiscal 2026 deficiency appropriation of $30.9 million (including $22.2 million from LIHEAP and $7.8 million from the electric universal service program).

- RGGI and CIF: DLS reported fiscal 2024 RGGI auction receipts to Maryland totaled $214.2 million—the largest year to date—and fiscal 2026 CIF funding for energy assistance was budgeted at $150.0 million.

- Benefit changes and targeting: DLS noted the benefit targeting index fell to 88 for FY2023 (indicating high‑burden households received relatively smaller benefits) and questioned the decline. DHS said it revised benefit structures to target highest assistance to lowest‑income households while using flat rate models to predict expenditures.

- Applications and payments: DLS reported that although applications rose sharply in FY2024, the number of households receiving benefits did not rise proportionally for all programs; MEAP (heating) and gas arrearage benefits were temporarily exhausted in April 2024, and DHS suspended new benefit issuance for those programs. DHS said it reduced some individual benefit amounts to cover more households.

Customer service and call center metrics

Courtney Thomas Winberg described progress on customer service measures after launching a new call center in August 2024 and expanding tracking for energy assistance queries. DHS provided preliminary call metrics: since August 2024 the call center had an overall answer rate of 58 percent with an average wait time of 18 minutes 14 seconds; more recently reported figures showed an answer rate of 87 percent (average wait 6 minutes 17 seconds) for a recent month and 98 percent answer rate with a 41‑second wait time in the most recent week cited.

DLS recommendations and DHS responses

DLS recommended restricting certain funds pending submission of an application processing report and asked DHS to explain excess USP (electric universal service program) revenue budgeting, the use of CIF fund balances, and the impact of benefits reductions. DHS concurred with several DLS recommended actions, explained that some communication and postage costs had been misreported across budgets, and said it was monitoring expenditures and considering supplemental benefits if excess funds remain at fiscal year end.

Ending

The subcommittee heard testimony from DHS and DLS on operations, funding sources (federal LIHEAP, RGGI/CIF, ratepayer surcharges), and steps DHS has taken to stabilize application processing. DHS pledged continued monitoring and reporting and to provide requested data on processing times, denial rates and participation among vulnerable groups.