Will Donald Trump’s FY26 budget plan leave 6 million households without heat or air conditioning? Here’s what’s at stake

A leaked budget proposal tied to U.S. President Donald Trump’s fiscal year 2026 financial plan has triggered alarm over the potential elimination of a key federal energy assistance programme, as per a report by USA Today.

If enacted, the plan would withdraw all funding from the Low-Income Home Energy Assistance Program (LIHEAP), placing nearly 6 million vulnerable American households at risk of losing access to heating and cooling.

LIHEAP Faces Complete Defunding Under Trump Budget

According to documents reviewed by the National Energy Assistance Directors Association (NEADA), the proposed FY26 budget from the Department of Health and Human Services (HHS) allocates zero funding for LIHEAP, as quoted in a report by USA Today.


The programme, designed to help low-income families meet their home energy costs, has historically served as a critical safety net, especially during extreme weather.

The fiscal year for the U.S. federal government begins on October 1 and runs through September 30.

With LIHEAP unfunded under this proposal, up to 5.9 million households may be left without assistance to maintain basic energy needs, including air conditioning in summer and heat in winter.

Early Impacts Already Being Felt

Despite the proposed budget cuts officially taking effect in FY26, immediate consequences are already being observed.

NEADA reports that 750,000 households may lose support this summer due to HHS layoffs within the LIHEAP division.

Earlier this month, the agency laid off its entire LIHEAP team—effectively halting its ability to allocate the approximately $378 million still available for distribution in the current fiscal year.

Without staff to determine state-level allotments, remaining funds cannot be disbursed, placing low-income families at heightened risk during the approaching summer heat.

Criticism Mounts Over Priorities in Trump Budget Plan

The decision to propose eliminating energy aid for the poor comes amid broader tax relief plans for wealthier Americans.

“This budget removes critical resources from the poorest households in America just to finance tax breaks for the well-off,” said Mark Wolfe, NEADA’s executive director. “It is unconscionable”, as quoted in a report by USA Today.

He added that even a modest $500 energy grant can be the difference between life and death for families, especially those facing extreme temperatures and without protection from utility shut-offs.

Wolfe also warned that only 17 states and Washington D.C. offer protections against summer energy disconnections, further amplifying the danger.

Families Across America at Risk

The proposed defunding of LIHEAP comes at a time when one in six American families is behind on their utility bills. Data shows that Americans currently owe about $21 billion in unpaid energy costs, a 30% increase since the end of 2023.

Most recipients of LIHEAP are among the nation’s most vulnerable: the elderly, people with disabilities, and families with young children.

Approximately 70% of households receiving LIHEAP support include at least one member in one of these at-risk groups.

As the debate over the Donald Trump budget plan intensifies in Washington, lawmakers and public advocacy groups are expected to push back strongly against the proposed cuts, citing serious humanitarian and economic consequences for millions of working-class families.

FAQs

What is LIHEAP?

LIHEAP stands for the Low-Income Home Energy Assistance Program. It is a federally funded initiative that helps low-income households pay for essential heating and cooling services, especially during extreme weather conditions.

What changes are proposed in Trump’s FY26 budget?

According to a leaked proposal reviewed by USA Today, the FY26 budget plan recommends eliminating all federal funding for LIHEAP. This would completely defund the program beginning October 1, 2025.