Federal shutdown delays money for Minnesota heating bills

Money that helps low-income Minnesotans pay for heating bills could be delayed for months by the federal government shutdown.

The Minnesota Department of Commerce said it’s taking applications for the Low Income Home Energy Assistance Program (LIHEAP), but it can’t pay out benefits without cash from the feds.

Commerce said its money typically arrives about a month after Congress approves a budget. That means the cash may not arrive until November or later even if the shutdown is resolved soon.

“As temperatures begin to drop, this delay could have serious impacts,” said Commerce spokeswoman Nancy Linden in a written statement.

The state’s Cold Weather Rule protects customers from losing electricity or heat until April 30 as long as they meet certain conditions. To keep heat on, however, the law says a customer must agree to a payment plan that is based on their financial circumstances.

The delay comes as many utility customers are struggling to keep up with their energy bills. Most of Minnesota’s largest power companies are shutting off heat or electricity for their customers in record numbers in the years after a temporary ban on the practice during the COVID-19 pandemic.

Minnesota’s most recent LIHEAP budget was roughly $125 million, and Commerce expects a similar amount for the coming year.

The program typically helps about 125,000 Minnesota households a year keep their heat on. Commerce says the majority of payments in Minnesota are to households in greater Minnesota, and much of the money goes to people over age 60.

In April, Minnesota’s Commerce department feared it would run out of LIHEAP money after the Trump administration laid off the entire staff of the program that distributes the cash.