As Vermont enters another heating season, the state is receiving $20.2 million in federal assistance to help low-income households pay their energy bills. The money, a block grant from the Department of Health and Human Services, arrives at the start of the federal fiscal year on October 1 and is distributed through five regional Community Action Agencies across the state.

At that funding level, Vermont's Low Income Home Energy Assistance Program typically serves between 25,000 and 30,000 households. But during the pandemic years, when Congress pumped an extra $8.3 billion into the program nationally through the American Rescue Plan, Vermont was helping more than 40,000 households annually. That emergency money is now gone, and thousands of families who received help in recent years may no longer qualify or may see sharply reduced benefits.

The stakes are particularly high in Vermont. About 40 percent of the state's households heat with oil, one of the highest rates in the country, compared to roughly 4 percent nationally. Most of Vermont lacks access to natural gas pipelines, leaving residents dependent on delivered fuels like heating oil and propane that are more expensive and more prone to price swings. Heating oil prices spiked sharply after Russia's invasion of Ukraine in 2022 and have stayed elevated since. Vermont's housing stock is also among the oldest in the nation, meaning many homes burn far more fuel per square foot than newer construction.

The result is that energy costs consume an unusually large share of income for low-income Vermonters, sometimes exceeding 20 to 30 percent of a household's budget. The state also has one of the oldest median populations in the country, and elderly residents on fixed incomes are among the most exposed when heating bills spike.

Nationally, the National Energy Assistance Directors Association has estimated that even at full baseline funding, LIHEAP reaches only about 16 to 20 percent of households that are technically eligible. Vermont's share reflects the state's cold climate and high energy burdens, but it is still far short of covering everyone who needs help.

The broader federal picture adds uncertainty. The Trump administration's push to reduce federal spending, along with restructuring at the Department of Health and Human Services, has created concern among state-level program administrators about the reliability of future LIHEAP allocations. In early 2025, some states reported delays in federal disbursements, though Vermont's program continued operating. Vermont's congressional delegation, including Sen. Bernie Sanders and Sen. Peter Welch, have been among the loudest voices in Washington pushing to protect LIHEAP funding.

Vermont administers the program through the state's Office of Economic Opportunity, and applications for heating assistance typically open in the fall. Households who received LIHEAP benefits in prior years and have not reapplied, or who were added during the expanded pandemic-era funding, should check with their regional Community Action Agency to find out whether they still qualify under current funding levels.