The Central Arkansas Development Council announced Tuesday in a press release that its summer LIHEAP (Low-Income Home Energy Assistance Program) Utility and CARES Assistance Programs are “being suspended immediately due to depletion of funds” and additional applications will not be accepted at this time.
LIHEAP was enhanced via an $8.2 million federal funding injection through the CARES (Coronavirus Aid, Relief and Economic Security) Act in July. The funding was split into two programs, with $6.97 million going towards LIHEAP and $1.23 million towards the Summer Cooling Program.
Qualifying for LIHEAP assistance has several requirements, including being an Arkansas resident, being in need of financial assistance for home energy costs and being enrolled in one of several qualifying social service programs or having an income below 150% of the federal poverty guidelines.
The CARES Act broadened LIHEAP’s reach during the COVID-19 pandemic, allowing agencies such as the CADC to expand their services.
The LIHEAP program, for example, had its maximum benefits increased to $1500 from $500, and participants were able to show past-due notices rather than shut-off notices. This broadened reach, however, also caused their funds to deplete quickly, leading to the current suspension of services.
“With those added amounts, we had triple the amount we could pay out to customers… In previous years we would pay enough for the utility bills to be paid, but this year we’ve been able to pay people’s past due notices, as well as put credit on people’s bills,” CADC representative Todd Anderson said.
With utility companies unable to disconnect service during the COVID-19 pandemic, some customers accumulated large bills. The program, Anderson said, normally services around 10,000 applicants. This year around 14,000 applied and were processed. That, in addition to the larger amounts the agency is now permitted to pay, led to the funds being quickly depleted.
Anderson said that the agency had already reached out to the state to look for additional funding, however.
“We contacted the state [Tuesday] to say we are out of funds. Oftentimes the state can find additional money if there are, for example, other agencies that don’t need the amount of funding they have received. That’s why we have suspended the program, not closed it. Normally, it runs until September 30, and if we’re able to secure more funding we will open it back up,” Anderson said.
According to the CADC press release, the agency will announce on its website and social media page if additional funding is secured and services resume.
For more information relating to CADC’s utility assistance program visit cadc.com/utility-assistance
