Help Paying Utility Bills: Programs That Can Lower Your Energy Costs

Heating, cooling, and electricity bills can eat up a big portion of a household budget – especially for seniors on fixed incomes or families already stretched thin. If you’re struggling to keep up with utility costs, several assistance programs exist to help. Most people who qualify don’t know these programs exist, or assume they won’t qualify. It’s worth a few minutes to check.

LIHEAP: Federal Energy Assistance

The Low Income Home Energy Assistance Program (LIHEAP) is the primary federal program for help with home energy costs. It provides grants – money you don’t pay back – to help with heating and cooling bills, and in some states, also for weatherization or energy-related home repairs.

LIHEAP is run at the state level, so benefit amounts and income limits vary. Generally, households with income at or below 150% of the federal poverty level are eligible, but some states set higher limits. Priority is given to households with seniors, young children, or members with disabilities.

LIHEAP is available seasonally in most states – funds open for heating assistance in fall and winter, and cooling assistance in summer. To apply, contact your state’s LIHEAP office or visit benefits.gov to find your state’s program. Local community action agencies also accept LIHEAP applications.

Weatherization Assistance Program

The Weatherization Assistance Program (WAP) helps low-income households make their homes more energy efficient – which reduces bills permanently rather than just covering them temporarily. Services may include insulation, sealing air leaks, upgrading heating or cooling systems, and installing energy-efficient lighting.

There’s no cost to eligible households. The average household that receives weatherization saves around $300 per year on energy costs. Income limits are generally 200% of the federal poverty level. Contact your state’s WAP office or local community action agency to apply.

Utility Company Assistance Programs

Many utility companies offer their own assistance programs that are separate from federal and state aid:

• Low-Income Rate Assistance (LIRA) – Discounted monthly rates for qualifying customers. Contact your utility company directly to ask if this exists in your area.
• Budget billing / levelized payment plans – Spreads your annual costs into equal monthly payments, eliminating spikes in winter or summer.
• Payment arrangements – If you’ve fallen behind, most utilities will set up a payment plan to avoid shutoff. Ask before your account goes to collections.
• Arrearage management programs – Some utilities forgive past-due balances over time if you stay current on new bills. Ask your utility if this program exists.
• Shutoff protections – Many states prohibit utility shutoffs during extreme weather (hot or cold) or for households with elderly, disabled, or seriously ill members. Know your rights.

State and Local Programs

Beyond LIHEAP and WAP, many states and counties have their own utility assistance programs. Some are run through community action agencies, nonprofits, or local government offices. These can sometimes help faster than federal programs, especially when LIHEAP funds are exhausted.

Calling 211 (the national social services helpline) is one of the quickest ways to find local utility assistance. It’s free, confidential, and available in most areas.

What to Have Ready When You Apply

Most programs will ask for:

• Proof of income (pay stubs, Social Security award letter, tax return)
• A recent utility bill showing your account number and current balance
• Proof of address (lease, mortgage statement, or utility bill)
• ID for all household members
• Social Security numbers for household members

Don’t wait until service is about to be shut off. Applications can take days to weeks to process, and many programs require you to be a current customer to receive benefits.

Check What Else You May Qualify For

People who qualify for utility assistance often qualify for other programs too – SNAP, Medicaid, or prescription drug help. A benefits screener can help you find everything in one place.

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Money Instructor does not provide tax, legal, or financial advice. This material has been prepared for educational and informational purposes only. Program rules and funding levels change. Verify current requirements with your state agency or local provider before applying.