FY26 Appropriations Update: Funding Increase for LIHEAP
February 9, 2026
On February 3, President Trump signed the Fiscal Year 2026 Labor, Health and Human Services (LHHS) bill, as part of a minibus package, into law.
This package includes $4.045B for the Low Income Home Energy Assistance Program (LIHEAP), which provides assistance to eligible low-income households with the goal of managing and meeting their immediate home heating and/or cooling needs. This is a $20M funding increase from FY25 funding levels.
States can direct up to 15% of LIHEAP dollars to their Weatherization Assistance Programs (WAP), making this funding increase another big win for the Building Performance Association (BPA) and the contractors, programs, and partners across our network.
This law comes on the heels of the Fiscal Year 2026 appropriations package containing annual funding for several Federal agencies, including the Department of Energy (DOE) and the Environmental Protection Agency (EPA), which President Trump signed into law on January 23.
Thanks to BPA’s advocacy and collaboration with other stakeholders, that package maintained or increased funding for several core programs that support energy efficiency, weatherization, and state-administered energy efficiency programs. Specifically, the enacted appropriations package included:
- DOE Weatherization Assistance Program (WAP): $369M in FY26, an increase of $3M over FY25 enacted levels;
- DOE State Energy Program (SEP): $66M in FY26, equal to FY25 enacted levels;
- DOE Residential Buildings Integration (RBI): $65M in FY26, an increase of $5M over FY24 enacted levels; and
- EPA ENERGY STAR: $33M in FY26, an increase of $1M over FY24 enacted levels.
As always, your participation is critical to protecting and advancing energy efficiency programs that support small businesses, local jobs, and cost savings for families. Though the FY26 appropriations cycle has concluded for our key programs, the FY27 process will begin shortly.
Join our Action List for early updates on sign on letters, lobby days, and other advocacy opportunities to protect and build on our wins.