Low-Income Energy Assistance Program Statement Announcing Proposed Legislation.

I am today announcing that my low income energy assistance program is being sent to Congress. The program would provide $1.6 billion in aid this winter, and $2.4 billion per year thereafter.

This proposal will address a critical need—alleviating the impact of higher energy prices on those who are suffering most from higher energy prices. Our energy policy must be compassionate. Without a substantial program such as this one, our most needy households, including many of the elderly on meager fixed incomes, will face almost impossible pressures on household budgets which already go entirely for the necessities of life.

The proposal has two components: an energy crisis assistance program, which will provide $400 million this year to the States to operate flexible programs to help low-income households faced with health threatening energy emergencies; and a special allowance program which will provide $1.2 billion this winter and $2.0 billion next year and thereafter, in cash assistance to all poor households. When fully implemented the special allowance program would be available to all households with incomes below 125 percent of the Federal poverty threshold. That threshold is currently $7,160 for a family of four.

While revenues from the proposed windfall profits tax will be necessary to fund this program, I am asking the Congress to move immediately to make general revenues available for the $400 million emergency program this winter. When the windfall tax is passed, its revenues will be used to reimburse the $400 million spent from general revenues. With prompt congressional action on the windfall tax and on my low-income assistance program, and close cooperation between the Federal and State Governments, we can provide help to over 7 million needy households this winter—and avoid tragedies which might otherwise occur.