Biden Unveils $13.5 Billion Package To Ease Household Energy Costs
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President Joe Biden’s administration will release $13.5 billion to enable low-income earners battling with skyrocketing energy bills.
The White House announced the package earlier on Wednesday. The U.S. Department of Health and Human Services will provide $4.5 billion as part of the funding, through Low-Income Energy Assistance Program (LIHEAP).
Households To Pay More For Energy This Winter
According to the projection by the U.S. Energy Information Administration (EIA), U.S. consumers are expected to pay up to 28% more to heat their homes in this year’s winter than last year because of the escalating fuel prices. As a result, the U.S. government wants to reduce the burden on Americans, especially households with low income.
The new funding will be used to help Americans clear their utility bills as well as repairs of home energy appliances that will help to reduce their energy costs.
In another package, the U.S. Department of Energy will be allocating $9 billion in funding from the Inflation Reduction Act, as a way of offering support to 1.6 million households. The fund will be used to upgrade their homes to lower energy bills.
Nearly 90% of 130 million households depend on electricity or natural gas for heat. The rest use wood, propane, or heating oil.
According to a forecast by EIA, an average household will spend roughly $1,359 for electric heat and $931 for gas this winter. This represents a 10% increase in electricity and a 28% increase in gas compared to last year.
Households Face Energy Issues As Gas Prices Surge
Homes using propane will see their cost rise by 5% to $1,668 while those using heating oil will pay 27% higher than what they spent on heating oil last year. Despite the enormous surge in price, gas will still be the cheapest source of heat for households in the U.S.
More families are now facing challenges to pay their electric and gas bills. According to a report by NEADA, U.S. families are about $16.1 billion short of their utility bills. This could further increase during the winter if no stimulus package is sent.
