According to an executive order issued by President Donald Trump, approximately 2,000 low-income households in Alabama stand to lose federal assistance to help them pay high energy bills.
Many of the recipients had already applied the $100 credit to their power bills. With the funding removed, the amount will be added to the next bill.
Huntsville Utilities, a city-owned electric utility in north Alabama, told Inside Climate News that it notified 255 such customers earlier this month of the funding loss.
“Community Action Agency of Huntsville/Madison & Limestone Counties has notified us that the grant you received for $100.00 on January 23, 2025 is no longer valid due to President Trump’s Executive Order to rescind the funding behind the grant,” according to the letter. “The grant you received for $100.00 has been debited to your account and will be due with your next invoice.”
The funding came from a $1 million award included in the Infrastructure Investment and Jobs Act, according to the Alabama Department of Economic and Community Affairs (ADECA), the state agency in charge of administering the federal grant.
The $1 million was intended to provide additional assistance to families who were already enrolled in the US Department of Health and Human Services’ Low-Income Home Energy Assistance Program.
According to ADECA spokesman Mike Presley, the funding for the program has been paused due to Trump’s executive order “Unleashing American Energy,” which directs agencies to “immediately pause the disbursement of funds appropriated through the Inflation Reduction Act of 2022 (Public Law 117-169) or the Infrastructure Investment and Jobs Act.”
The Trump administration’s efforts to use executive orders to revoke funding already allocated by Congress have sparked what many refer to as a “constitutional crisis,” as the executive branch under Trump attempts to seize control from the other branches of government.
Democrats and others argue that the moves violate the US Constitution, which clearly grants Congress the sole authority to appropriate and legislate.
“President Trump is still illegally blocking hundreds of billions of dollars in investments that are owed to communities across the country,” said U.S. Senator Patty Murray (D-Wash.) in a statement last week.
“If Donald Trump or Elon Musk want to cut funding that is helping to create good-paying jobs across the country, they can go to Congress and get the votes they need. Murray stated that defying the constitution and unilaterally taking your tax dollars is not how this works.
“These funds were intended to reduce energy costs for families. Approximately 2,000 households are currently in limbo, with higher bills and the possibility of disconnections.
In this case, the broader constitutional debate is making it more difficult for low-income Alabamans to pay their electric bills.
Daniel Tait, executive director of Energy Alabama, a nonprofit clean energy advocacy group, described the move as “yet another example of politics getting in the way of helping everyday Alabamians.”
“These funds were meant to lower energy costs for families,” Tait said in an email. “Approximately 2,000 households are now in limbo, with higher bills and potential disconnections. Every congressional representative and senator should be demanding answers and working to provide relief for Alabamans.”
Presley stated that at the time of the pause, “approximately 2,000 households statewide had applied for and were at some point in the process of receiving the $100 supplemental award.”
According to Presley, Alabama will still receive $53 million from the HHS for the Low-Income Home Energy Assistance Program in fiscal year 2025. The executive order only affected the Jobs Act’s $1 million supplemental funding.
To be eligible for LIHEAP assistance, households must have a total income that is less than 150 percent of the federal poverty guidelines or 60 percent of the state median income.
That works out to $48,225 for a four-person household. The amount awarded is determined by income, the number of household members, and whether the household includes people over 60 or under 18.
“Community action agencies are currently providing emergency assistance with home heating bills to eligible households through that funding, which can range from $280-$550,” Presley told CNN via email. “There is no pause in that funding.”
Presley stated that ADECA is awaiting further guidance from federal agencies on how to proceed.
