States Routinely Request to Increase LIHEAP’s Weatherization Cap, but Must Repeat the Process Every Year

This brief examines the utilization of Low-Income Home Energy Assistance Program (LIHEAP) funds for weatherization from Fiscal Year 2016 (FY16) through FY24, as well as the waiver process states can use to increase their weatherization spending limits.

Key findings include:

• LIHEAP allows states to allocate up to 15 percent of program funds for weatherization activities and repairs that maximize energy efficiency. Since FY16, states have devoted an average of around nine percent of LIHEAP dollars to weatherization annually.  
• States can also request a waiver to allocate up to 25 percent of funds for weatherization. Since FY16, 12 states have received a weatherization waiver at least once, and 10 have received multiple waivers. During this period, between two and 11 states have submitted weatherization waiver requests in a given year. None of these waivers have been denied.
• States seeking weatherization waivers must reapply annually as required by federal LIHEAP statute, requiring them to frequently seek public comment and submit updated justifications.

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