New England leaders seek another $3B for fuel aid

(The Center Square) — New England leaders are calling on Congress to provide more federal money for home heating oil assistance with prices spiking amid the ongoing Middle East conflict. 

In a letter to chairpersons of House and Senate appropriation committees, Democratic Maine Gov. Janet MIlls led other leaders from the region in requesting they approve another $3 billion in funding for the Low-Income Heating Assistance Program, which would give states a total of $7 billion for fuel assistance this winter. 

"Whether through an increase in the annual appropriation or a one-time emergency supplemental funding, these additional resources are urgently needed," Mills and others, including Republican New Hampshire Gov. Kelly Ayotte, wrote.

Mills and other governors said low-income households are struggling with the cumulative impact of rising costs for groceries, housing, insurance, transportation, and other necessities. 

"For families already living on tight budgets, higher energy bills add to an increasingly difficult financial burden," they wrote. "Seniors on fixed incomes, families with young children, and people with disabilities are especially vulnerable, often facing the difficult choice between maintaining safe temperatures in their homes and meeting other basic needs." 

Under the LIHEAP program, homeowners who earn 60% of the state median income are eligible for assistance paying for fuel, electricity and weatherization upgrades. The money is provided to states annually through an allocation from Congress. In 2025, the federal government distributed $4.1 billion in LIHEAP funds.

Roughly one-third of New England homes use heating oil with the share reaching about half in some states, according to U.S. Energy Information Administration statistics.

More from this section

Counties with the most veterans in New Hampshire

New Hampshire Airports See Country's 15th Largest Surge in Travelers During the Holiday Season

But the governors said at current funding levels, the rising energy prices "will erode the purchasing power of LIHEAP assistance, forcing states to reduce benefits or serve fewer eligible households when the need is greatest." 

"While our states are working to mitigate the immediate impact of rising energy costs on vulnerable households and continue to invest heavily in energy efficiency, weatherization, and other long-term solutions, these efforts cannot fully offset the immediate financial pressures facing families this winter," the governors wrote in the letter.

The letter is the latest urging Congress to take steps to reduce home heating oil prices, fueled in part by the ongoing military action in Iran, which has restricted shipments through the Strait of Hormuz, a crucial energy choke point. 

Rising energy costs were a key issue in last week's midterm elections that saw Democrats take control of Congress by historic margins. 

Last week, the average retail price for heating oil was still hovering around $6 per gallon. That's about two dollars higher than the previous year, according to the Department of Energy. 

The National Energy Assistance Directors Association estimates that home heating oil prices are projected to increase by approximately 50% this winter. The group says low-income households in the Northeast face nearly $1.1 billion in additional heating oil costs.

"These pressures are particularly acute in New England, where cold winters, older housing, and a heavy reliance on delivered heating fuel leave families especially exposed to the dramatic price increases America is currently experiencing," the governors wrote. "Timely action will help states sustain assistance and protect vulnerable households from the consequences of unaffordable home energy costs that are far beyond their control."