WASHINGTON, DC - In an effort to help low-income families and seniors struggling to pay their energy bills, U.S. Senator Jack Reed (D-RI) today joined with community leaders, LIHEAP advocates, and a bipartisan coalition of lawmakers in a push to include significant home-energy assistance funding in the economic stimulus package.

"One of the most effective ways to help Americans struggling with rising energy costs and the slowing economy is to provide additional LIHEAP funding in the economic stimulus bill. Not only would this fully fund the program for fiscal year 2008, but it would help jumpstart our faltering economy," said Reed, chairman of the Northeast-Midwest Coalition. "With a boost to their budgets, households will be freer to spend on other vital essentials. Families will not have to choose between heating their homes and putting food on the table. States could get LIHEAP funding to families immediately, and families will spend those funds quickly and in the local economy."

Approximately 30,000 Rhode Island households rely on LIHEAP to assist with the costs of heating their homes each year and to pay delinquent utilities bills so they can re-establish service. Senator Reed helped secure nearly $18 million for Rhode Island's LIHEAP program in 2008.

Studies show that LIHEAP is a proven dollar multiplier, which is critical for economic stimulus. Each LIHEAP dollar distributed generates more than five dollars of economic activity. LIHEAP also helps create jobs - for every million dollars spent, an average of 94 jobs are created nationally.

Last week, 35 U.S. Senators wrote a bipartisan request to congressional leadership to add $3.62 billion for the Low-Income Home Energy Assistance Program (LIHEAP) to the economic stimulus package. The increase would fully fund the LIHEAP program at $5.1 billion in fiscal year 2008 and provide an additional $500 million in contingency funds.

"An infusion of LIHEAP funding can be used by low-income households to help cope with their rising home energy bills. LIHEAP funds will be spent quickly and immediately to stimulate the economy and provide a vital safety net to families and seniors so they do not need to choose between eating and paying their energy bill," wrote the senators.

According to a report by the AARP, the actual low-income energy bills in the winter of 2005 and 2006 totaled over $29.8 billion more than low-income households could afford to pay. Federal energy assistance during that period amounted to $1.94 billion, leaving a gap of almost $28 billion in energy assistance needs. Only about 5 percent of the low-income residential energy bill is covered by LIHEAP.

In December, Congress passed a consolidated appropriations spending bill containing a total of $2.57 billion for the Low Income Home Energy Assistance Program (LIHEAP).

Skyrocketing energy prices and severe weather have made additional LIHEAP funding a necessity for low-income families and seniors. Funding in the stimulus package would be used immediately by these households to help them pay their energy bills, jumpstart the economy, and support small businesses that deliver fuels.