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The Trump administration has fired the entire staff overseeing a $4.1 billion federal program that helps low-income households afford heating and cooling, leaving states scrambling to secure $378 million in unpaid funds.
The Low Income Home Energy Assistance Program (LIHEAP), which serves 6.2 million families annually, was abruptly left without personnel after a dramatic restructuring of the Department of Health and Human Services (HHS).
“The way they did it, there was no warning,” said Mark Wolfe, executive director of the National Energy Assistance Directors Association. Several senior LIHEAP employees reported arriving at work only to find themselves locked out of the building.
States in Limbo Over Remaining Federal Funds
While much of this year’s LIHEAP funding has already been distributed, $378 million remains undelivered, creating uncertainty for states that depend on federal support to assist low-income seniors and families.
In Minnesota, where snow is still falling, state officials warn that funds could run out by mid-April, leaving thousands without help to cover their heating and electric bills. The state had expected an additional $12 million to $13 million, enough to support over 10,000 households and prevent utility shutoffs.
“Winter is still happening in Minnesota. It snowed yesterday,” said Pete Wyckoff, deputy commissioner of energy resources at the Minnesota Department of Commerce. “We need that extra money to get through the rest of the season.”
In Connecticut, officials fear the program may collapse without federal oversight. The state is still owed $8 million, and emails to LIHEAP staff now bounce back unanswered.
“People we’ve worked with for years—who are deeply knowledgeable of the program—are just gone,” said Peter Hadler, deputy director of the Connecticut Department of Social Services.
White House Defends Restructuring Amid Backlash
When pressed on LIHEAP’s future, Emily Hilliard, deputy press secretary for HHS, said the agency would “continue to comply with statutory requirements” and that the restructuring would better position the department to execute on Congress’s intent.
Health Secretary Robert F. Kennedy Jr., appointed by Trump, defended the shake-up, stating that HHS needed to be ‘recalibrated’.
However, bipartisan backlash has followed, with 13 U.S. senators—including Republicans Susan Collins (ME) and Lisa Murkowski (AK)—urging HHS to restore LIHEAP’s staffing.
The senators’ letter to Kennedy warned that the layoffs could undermine a program that provides a “crucial lifeline” to millions of vulnerable Americans.
Retailers and Energy Experts Warn of a Crisis
The layoffs come as energy prices remain high and weather conditions remain extreme in many parts of the country. The LIHEAP program also helps struggling families afford air conditioning in dangerously hot summers, a growing concern amid rising temperatures.
“Some states won’t run their cooling programs this summer if this funding doesn’t come through,” warned Wolfe. “They’ll scale them back, and families will suffer.”
With no federal staff left to oversee the program, state officials fear a bureaucratic nightmare in the coming months.
“This isn’t just a numbers issue—it’s a survival issue,” said Hadler. “We need answers, and we need them now.”
As millions of low-income families brace for possible heating and cooling crises, all eyes are on the Trump administration’s next move.
