America Faces a Summer of Struggle: The Impact of Energy Costs and Shrinking Assistance Programs
By Dr. Conor M. Harrison (Associate Professor of Economic Geography, University of South Carolina), Dr. Elena Louder (Postdoctoral Researcher in Geography, University of South Carolina), Dr. Nikki Luke (Assistant Professor of Human Geography, University of Tennessee), and Dr. Shelley Welton, J.D. (Professor of Law and Energy Policy, University of Pennsylvania)
Introduction
Trump Slashes Aid for Low-Income Energy, Amid Warming Temperatures
Brace yourselves, America, 'cause we're heading straight for one of the hottest summers on record. Millions of families across the nation will struggle to foot the bill as temperatures and energy costs rise, a vicious cycle triggered by global warming and exacerbated by political decisions.
A survey conducted in 2023 revealed that nearly one out of four Americans went without paying their full energy bill for at least a month. Moreover, one out of four admitted it was a regular occurrence where they kept their homes at uncomfortably cool or hot temperatures to save a buck. By 2025, 75% were worried about the increase in energy costs.
Conservative estimates predict that utility companies switch off power to over 3 million U.S. households annually due to residents failing to pay their bills.
The Trump administration took a stab at dealing with the soaring energy prices. On President Trump's second day in office during his 2025 term, he declared a national energy emergency by executive order, underscoring the devastating impact high energy prices have on the low-income demographic.
Energy Secretary Christopher Wright expressed concerns about utility disconnections and set the goal to "eliminate that number – aiming for zero shut-offs."
However, the administration's proposed budget for 2026 eliminated funding for the Low Income Home Energy Assistance Program (LIHEAP), an essential federal program providing assistance to help low-income households pay their utility bills. April 1, 2025, marked the unfortunate day when the entire LIHEAP staff was laid off.
For many families already juggling multiple resources to keep up with the power bills, things just got a whole lot harder without the federal office catering to energy bill assistance.
The High Cost of Affordable Energy
Our research focuses on communities in South Carolina and Tennessee, where many residents are forced to make perilous trade-offs. Creeping energy prices force low-income households to choose between necessities, child care, and paying the utility bills.
One elderly participant who suffered from serious health conditions explained that she often skipped buying medications in order to pay her utility bill. Another researcher, who assists low-income families directly with energy bill assistance, admitted, "You walk into these homes and it's so hot. It's like you can't breathe. How do you stay in here? It's just unreal." Regrettably, these stories are becoming alarmingly common – particularly in low-income communities and communities of color.
Electricity prices are expected to rise alongside worsening climate change: more frequent heatwaves and extreme weather events put extra stress on the grid and drive demand higher. Furthermore, the rapid growth of energy consumption by data centers, powered by advancing artificial intelligence, contributes to the acceleration of price rises.
Shrinking Resources for Assistance
The Low Income Home Energy Assistance Program (LIHEAP), established in 1981, distributes federal funds to states as block grants intended to help low-income families pay their utility bills. In fiscal year 2023, the program distributed US$6.1 billion in energy assistance, preventing disconnections for over 5.9 million households.
The program's small staff played vital roles in disbursing money, providing implementation guidelines, monitoring state-level fund management, and evaluating program performance. Historically, LIHEAP has prioritized heating assistance in cold-weather states over cooling assistance in warmer ones. However, recent research suggests that the allocation formula needs to be revisited in response to the growing need for air conditioning. The layoffs claimed the staff who could direct this work.
It is unlikely that other sources of funding can fill the gaps created by the absence of LIHEAP resources. The program's funding has never been sufficient to address the need in full. In 2020, LIHEAP assisted just 16% of eligible households.
Research indicates that many households rely on a variety of local nonprofits, faith-based organizations, and informal support networks (family and friends) to help pay the bills and maintain power connections. For example, a research participant named Deborah said she sought help from church to church whenever faced with a utility disconnection. In South Carolina alone, United Way received over 16,000 calls seeking help with utility bills in 2023.
These charitable services serve as a crucial lifeline for vulnerable families, especially in the communities we study in the South. However, research suggests that faith-based programs don't reach as many people as public programs.
Without LIHEAP, the limited resources provided by nonprofits and the personal connections families put together will be stretched even thinner, especially as other charitable services, such as food banks, also face funding cuts.
The Future Ahead
The $4.1 billion that Congress allocated to LIHEAP for the 2025 fiscal year has already been expended. As the program's staffing cuts impact its responsiveness to growing requirements, Congress must decide whether to eliminate program funding permanently.
The stakes couldn't be any higher. Take Maricopa County in Arizona, home to Phoenix, for instance. Heat-related deaths have surged here by 1,000% over the past decade, with hundreds of these deaths occurring indoors.
We fear that gutting LIHEAP puts the goal of energy affordability for all Americans – and their lives – at risk. Until more affordable energy sources, such as solar and wind power, can be put into widespread use, an expansion of federal assistance programs is critical, not a contraction. Expanding LIHEAP's funding and reach and improving home weatherization programs are good starting points.
Requiring utility companies to forgive past-due bills and refraining from utility shut-offs during the hottest and coldest months would provide a significant relief to struggling families. Currently, approximately two dozen states have rules in place to prevent shut-offs during the most brutal summer heat.
For the moment, the cuts mean more pressure on nonprofits, faith-based organizations, and informal networks. As we head into another exceptionally hot summer, let us fervently hope that cuts to LIHEAP staff do not signal a growing, preventable death toll.
Originally published by The Conversation on 05.13.2025, under the terms of a Creative Commons Attribution/No derivatives license.
Enrichment Data:
- The elimination of LIHEAP could lead to increased energy insecurity, financial burdens, and negative impacts on the health and well-being of vulnerable populations.
- Energy insecurity can force families to make difficult trade-offs – such as choosing between buying food, paying for child care, and keeping the lights on.
- Heating and cooling systems are essential for low-income households to maintain basic levels of health and comfort, particularly during extreme weather events.
- Housing insecurity and homelessness may rise as families are unable to afford utility bills or maintain their homes.
- The cuts to LIHEAP funding will further disadvantage low-income communities and widen social inequality gaps.
- Additional options for addressing the growing energy affordability crisis include scaling up affordable energy sources, such as solar and wind power, and providing universal energy assistance to all low-income households.
- As the climate change advances and energy costs continue to rise, the health-and-wellness of low-income families may be compromised, particularly during extreme weather events, as they struggle to afford energy for essential heating and cooling systems.
- The elimination of funding for the Low Income Home Energy Assistance Program (LIHEAP) could lead to a surge in energy insecurity, causing financial burdens for vulnerable populations and potentially forcing them to prioritize paying utility bills over necessary expenses like food or medication.
- In the face of shrinking assistance programs and rising energy costs, the climate-change and energy industries must collaborate to address the challenges posed by global warming and find innovative, sustainable solutions for increasing energy affordability. Financial investments in environmental-science research and development of clean, renewable energy sources could pave the way for a more equitable and stable energy future.
