ABSTRACT
The Home Energy Assistance Act of 1980 authorized direct grants to offset the rising energy costs of eligible households and of assisted housing projects. States administered the program, but had to have plans approved by the Office of Family Assistance in the Department of Health and Human Services (HHS) before funds could be disbursed. States received 100 percent reimbursement for funds distributed to low-income households; 7.5 percent of the reimbursement could be used for state administrative costs. The reconciliation act shifted administrative responsibility for the energy assistance program to the states and sets minimum standards for control and reporting of the use of funds. States have been given greater control over transferring of funds and at least twenty-seven states have shifted part of the funds allocated under the block grant to other block grants. The 1983 Reagan budget proposes merging the low-income energy assistance block grant with the aid to families with dependent children (AFDC) emergency assistance program.
