Heating Assistance Programs Narrowing Eligibility This Season

For decades, the Low Income Home Energy Assistance Program (LIHEAP) has been a reliable safety net for retirees. If your Social Security check was low enough, you qualified for a grant to fill your oil tank or pay your gas bill. In 2026, that safety net has developed major holes. Facing a “fiscal cliff” of expiring pandemic-era subsidies and flat federal funding, state agencies are quietly tightening the velvet rope on who gets help.

This season, eligibility is no longer just about your monthly income. New “resource tests,” lower income caps, and strict prioritization protocols are disqualifying thousands of middle-income seniors who received aid in previous years. If you are banking on that $600 grant to get you through February, you need to check the new fine print immediately. Here are the specific ways heating assistance programs are narrowing eligibility this winter.

1. The “Asset Test” Surprise

Historically, most fuel assistance programs only looked at your income (pension, Social Security). They didn’t care if you had a nest egg in the bank. In 2026, to preserve dwindling funds for the “poorest of the poor,” several states have reintroduced or tightened “Liquid Asset Tests.”

• The Change: Agencies are now asking for bank statements to verify your “available resources.” In states like Missouri, resources cannot exceed $3,000 for a household to qualify. Similarly, Medicaid-linked assistance programs in states like Massachusetts have asset limits as low as $2,000 for single applicants.
• The Impact: Responsible seniors who saved a small emergency fund for home repairs are being penalized, while those with zero savings are prioritized.

2. The Shift from “State Median” to “Federal Poverty”

Federal law allows states to set income limits as high as 60% of the State Median Income (SMI) or 150% of the Federal Poverty Guideline (FPG). When funding was flush, states used the higher SMI number to help more people.

• The Change: To stretch 2026 budgets, many program administrators have reverted to the stricter 150% Federal Poverty Guideline.
• The Impact: This creates a massive “eligibility cliff.” Under the 2026 guidelines, 150% of the poverty level for a two-person household in most states is roughly $30,660 (derived from the $20,440 base). If you earn $31,000, you are now considered “too rich” for help, whereas previous years might have allowed up to $40,000 under state median rules.

3. The “Priority Group” Waitlists

In previous years, applications were often processed on a first-come, first-served basis. Now, agencies are strictly enforcing “Priority Group” tiers to manage delays caused by federal funding hold-ups.

• The Change: Funds are legally ring-fenced for households with members over 60, disabled residents, or children under 6. In Rhode Island, for example, these groups are explicitly given priority for crisis grants to restore service.
• The Impact: If you are a 58-year-old worker with no major disability, your application may be placed in a “pending” status indefinitely. You technically qualify, but the agency will not release funds to “Tier 2” applicants until late winter—if any money is left at all.

4. The Exclusion of “Fees” from Grants

As utility bills evolve, so do the charges. Many electric and gas bills now include high fixed “Infrastructure” or “Modernization” fees that have nothing to do with fuel usage.

• The Change: LIHEAP grants are designed to cover energy burdens, but with flat funding, the purchasing power of these grants has eroded against rising fixed costs. Grants often cannot cover the full bill when non-usage fees (like storm recovery riders) inflate the total.
• The Impact: You might receive a grant for $500, but because your utility bill has $60 in monthly fixed fees, you still end up owing money every month. The grant no longer wipes out the bill entirely because the “non-fuel” portion remains your responsibility.

5. The “Crisis” Definition Narrowing

“Crisis” grants—extra money released when you are about to run out of fuel—used to be flexible. You could apply if you had less than a quarter tank of oil.

• The Change: In 2026, many agencies have redefined “Crisis” to mean you must be effectively empty or have received a formal Disconnect Notice. Federal standards now often define a crisis as having less than 5% fuel capacity or a disconnect notice within 48 hours.
• The Impact: You can no longer proactively top off your tank to avoid anxiety. You must wait until you are in a genuine emergency—often days away from freezing—before the system unlocks the extra funds.

Apply Anyway, But Have a Plan B

Even if you think you might be disqualified, apply immediately. Denial letters can actually unlock other local charities (like the Salvation Army or United Way) that require a LIHEAP rejection letter before they can help you. However, do not assume the money is coming. If you have a small savings account, be prepared to spend it on fuel this year, as the system effectively views that rainy day fund as your primary heating plan.

Did you get denied for fuel assistance this year after qualifying in the past? Leave a comment below—tell us which new rule tripped you up.