LANSING, Mich. (Sept. 24, 2025) — State Sen. Jeff Irwin (D-Ann Arbor) has recently introduced a bill to direct more funds from the federal Low Income Home Energy Assistance Program (LIHEAP) to help save energy long-term and make lasting improvements to Michigan housing. Introduced last week, Senate Bill 562 would allocate a minimum of 15% of LIHEAP dollars to weatherization.
“Many people who struggle to pay their energy bills could significantly lower their future costs if they had the means to improve their insulation or get more efficient appliances,” said Sen. Irwin. “When we use federal energy assistance dollars to make homes more efficient, the vast majority of people no longer need help paying their bills a year later.”
LIHEAP is a lifesaving federally funded program that assists low-income and very low-income households with energy bills. In 2024, Michigan used LIHEAP funds to help more than 564,000 households through the Home Heating Credit, the State Emergency Relief program, the Michigan Energy Assistance Program, and the Weatherization Assistance Program. While current Michigan law caps LIHEAP weatherization funding at 15%, Senate Bill 562 would instead set a minimum of 15% of LIHEAP funding for weatherization, such as sealing air leaks, adding insulation, installing programmable thermostats, and fixing outmoded furnaces.
“Energy costs are rising across the country, including in Michigan,” said Grace Michienzi, Senior Director of Policy at the Michigan Energy Innovation Business Council. “Supporting more weatherization projects will not only reduce energy bills for families, but will help to grow and support energy efficiency jobs across Michigan, a sector that already supports over 76,000 jobs.”
“By leveraging LIHEAP for long-term home improvements like insulation, furnace upgrades, and energy efficiency measures, we’re not just helping households pay a bill this month; we’re reducing their energy burden for years to come. This approach strengthens family stability, stretches federal dollars further, and ensures that vulnerable households can live with dignity in healthier, more affordable homes,” said Shama Mounzer, Chief Programs Officer at Wayne Metropolitan Community Action Agency.
While each home is different, in a sample of Wayne Metropolitan Community Action Agency clients whose homes were weatherized, only 4% required energy assistance the following year. Weatherization reduced all gas-heating households’ gas bills by an average of 10-15% and reduced half of clients’ electricity bills by an average of 20%.
Senate Bill 562 has been referred to the Senate Committee on Housing and Human Services, which Sen. Irwin chairs.