Maine heating fund, even with leftover money, won’t go as far this winter

MaineHousing taps a $4 million reserve to give vulnerable households a winter boost

Portland – In a move designed to shore up heating supplies before the coldest months arrive, MaineHousing announced that it will distribute $4 million of surplus funds from the previous winter’s Home Energy Assistance Program (HEAP) to about 4,400 low‑income households that applied early and meet the agency’s priority criteria: adults over 60, children six and under, and people with disabilities. The credits will begin rolling out to eligible families over the next week or so.

The $4 million represents roughly 13 percent of the total HEAP money that the state expects to distribute this year. Maine is slated to receive a federal HEAP allocation of about $41 million, of which roughly $27 million will be earmarked for heating fuel. That federal money is not expected to arrive until late this month, so the state’s carry‑over funds are being used to give families a head start on the winter.

“We know this assistance will not fully offset the outsized heating burden many Mainers are facing, but acting now means some of our most vulnerable households can begin the winter with fuel in their tanks,” said Dan Brennan, director of MaineHousing, in a news release. “The benefit amount will just not be as deep. It ultimately means less oil for them,” added spokesperson Scott Thistle, citing the high cost of heating oil — currently hovering at $5.97 per gallon — which has pushed the average HEAP award to less purchasing power than last year.

Maine’s reliance on heating oil has made the state particularly hard hit by the recent price surge. In late June, the price of #2 oil, the most commonly used for heating homes in Maine, climbed to $4.40 per gallon; by September it had risen to nearly $6.00. The increase has prompted Governor Janet Mills to write to the congressional delegation, urging a boost in federal funding for Low‑Income Heating Assistance Program (LIHEAP) to keep pace with the spike. “Federal funding levels appropriated for LIHEAP this winter did not fully consider the drastic impacts of the president’s war that has sent fuel prices skyrocketing and are now insufficient for the circumstances that Maine and other cold‑climate states now face,” Mills said.

While federal money is still pending, MaineHousing is already using its carry‑over reserve to help those who applied as soon as the program opened in August. Applications are still accepted on the agency’s website and can also be submitted through local community action programs or by calling 211. The state’s 2026–2027 Winter Heating Guide lists cost‑saving resources for households of all incomes.

Last year, MaineHousing used $2 million in carry‑over funds to provide assistance to about 4,000 households during a six‑week government shutdown that left the state uncertain about forthcoming federal support. This year, the $4 million will reach 4,400 families. “The number of applications is up about 5 percent over last year, but they are still substantially lower than average in some parts of the state,” Thistle said.

The Department of Energy has also announced a global oil release. On Friday, the Group of Seven (G7) countries unveiled plans to put 100 million barrels of oil and fuel products into the market over the next several weeks. Sen. Susan Collins lauded the move, saying it should “put immediate downward pressure on energy prices.”

Despite the injection, the average HEAP award is set this summer at about $700, less than last year’s $700‑plus average. With oil prices still climbing, the amount of heating fuel households can buy on a given dollar has fallen.

The next round of federal HEAP money is expected to arrive by the end of October, and when it does, it will be disbursed to all eligible applicants as long as funds remain. For now, MaineHousing’s early use of its remaining budget is a stop‑gap intended to give the state’s most at‑risk residents a fighting chance against a winter that may see the coldest temperatures and the most expensive heating costs in decades.

Maine residents looking for assistance or additional information can contact their local community action program or call 211. The state’s Winter Heating Guide, available online, provides additional tips and resources for keeping homes warm on a budget.