Shuffling $3M in Leftover Energy Aid to Needy States
Published Date: 3/31/2026
Notice
Summary
The government is planning to shuffle around leftover energy help money from 2025 to states, tribes, and territories that got new funds for 2026. This means about $3.18 million will be reallocated to make sure no funds go to waste. If you’re part of these groups, keep an eye out and get ready to comment by April 30, 2026!
Analyzed Economic Effects
3 provisions identified: 1 benefits, 1 costs, 1 mixed.
Reallotted Funds Treated as FY26 Money
Recipients that get reallotted funds must treat them as FY26 funds and are subject to FY26 rules, including obligating at least 90 percent of their total block grant allocation for the fiscal year by September 30, 2026. Recipients must also include these funds on FY26 CRRs (Line 1.1), reconcile them on Federal Financial Reports (FFRs), record households served on FY26 Household Reports, and include them in FY26 caps for administrative costs, carryover, Assurance 16 activities, and weatherization assistance.
$3.18M Reallocated to LIHEAP Recipients
The agency proposes to reallocate a total of $3,181,108.07 to LIHEAP recipients that received FY26 direct awards. This total comes from $2,697,089 of FY25 LIHEAP funds plus $484,019.07 in IIJA funds and would be treated as FY26 funds for use by those recipients.
Only Direct FY26 Awardees Eligible
Only states, territories, tribes, and tribal organizations that received FY26 direct LIHEAP awards may receive the reallotted funds; subrecipients of those recipients and other entities may NOT apply for these funds. The agency conducted outreach beginning the week of August 25, 2025 and again the week of February 2, 2026 to notify affected recipients.
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