Maine Lawmakers Boost Low-Income Home Energy Aid Program

A Major Boost for Heating and Electric Assistance

Facing a brutal winter, volatile heating oil prices, and high electric bills, Maine lawmakers moved in early 2023 to substantially expand low-income energy assistance. The Legislature passed an emergency budget bill that included $50 million for home heating assistance, with $40 million of that dedicated to the Low Income Home Energy Assistance Program (LIHEAP). The emergency bill also included $450 relief checks for many Maine residents. The heating measure passed the House on a bipartisan 114-29 vote and cleared the Senate 24-10.

Federal LIHEAP Increase

On top of the state action, Maine received a $6.5 million boost in federal LIHEAP funding through the year-end federal spending bill, bringing Maine's total federal LIHEAP funding for the heating season to roughly $50 million. For a heavily rural state where many homes rely on delivered heating oil and propane, the combined state and federal increase represented one of the largest single-year expansions of home energy assistance in Maine's history.

Expanding Help with Electric Bills

Maine also moved to help residents cover rising electricity costs through the Low-Income Assistance Program, often called LIAP. The Governor and Legislature provided one-time additional funding from the unappropriated surplus of the General Fund that boosted LIAP from $15 million to $22.5 million and widened income eligibility. The Office of Public Advocate estimated the expanded funding and higher income caps allowed the program to serve about 46,000 additional Maine residents during the winter, a significant expansion of the typical LIAP footprint.

Who Qualifies

LIHEAP is generally available to households with incomes at or below 60 percent of the state median income. Applications are processed through Community Action Agencies across Maine, which also deliver weatherization assistance and crisis fuel help. The Low-Income Assistance Program for electric bills is administered through the electric utilities, with enrollment typically tied to participation in programs such as LIHEAP, SNAP, or TANF. Eligible customers receive monthly credits on their electric bill rather than a lump sum.

Why the Boost Mattered

Maine homeowners faced particularly severe energy cost pressure during the 2022 and 2023 heating seasons. Heating oil prices had climbed sharply, and standard offer electricity rates increased significantly across the state. Without the legislative and federal boost, many low-income homeowners, including seniors on fixed incomes and working families in rural counties, would have faced impossible choices between heating, food, and medicine. The expanded programs also helped local utilities and oil dealers avoid a spike in past-due accounts and shutoffs.

Ongoing Support

Low-income energy aid is now a permanent fixture of Maine's safety net. Each year, MaineHousing and the state's Community Action Agencies open LIHEAP applications ahead of the heating season, typically in the fall. Homeowners experiencing a crisis, such as running out of oil or facing a disconnect notice, can call 211 or contact their local Community Action Agency for emergency fuel assistance. Weatherization help through the Energy Efficiency Measures and Home Energy Assistance Weatherization programs can also reduce future bills by improving insulation, sealing air leaks, and replacing inefficient heating systems.

A Policy Model

Maine's coordinated approach, pairing federal LIHEAP dollars, state general fund appropriations, utility-administered electric credits, and weatherization services, is increasingly cited as a model for other cold-climate states seeking to stabilize energy costs for low-income homeowners.