February 14, 2011

Obama Budget Cuts Energy Assistance in Half

President Obama's 2012 budget proposes cutting in half spending on a program that helps low-income families pay their heating and cooling bills, to $2.57-billion.

The budget plan says that spending on the Low Income Home Energy Assistance Program doubled in 2009 after energy prices spiked.

"But energy prices are now significantly lower and the prior level is no longer sustainable," the White House said in its budget proposal.

The plan removes a trigger that was included in previous budgets allowing for additional money if energy prices rise, but it says the administration will monitor prices and propose an increase if needed.