State Releases Major Funding to Help Cover Energy Bills

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Mobile Rundown Staff

As winter cold snaps give way to summer heat waves, keeping a home comfortable can stretch household budgets thin. 

This week, the state announced a significant round of funding aimed at easing that pressure for thousands of Alabama households.

Governor Kay Ivey approved roughly $43.8 million in home energy assistance grants designed to help low-income residents manage heating and cooling costs throughout the year. 

The funding will be distributed through the Alabama Department of Economic and Community Affairs, commonly known as ADECA.

The grants support utility expenses during periods when energy use typically spikes, offering relief during both colder winter months and peak summer heat.

State Releases Major Funding to Help Cover Energy Bills

Where the Money Comes From and How It Works

The funding combines regular allocations from the Low-Income Energy Assistance Program (LIHEAP) along with supplemental dollars provided through the federal Infrastructure Investment and Jobs Act passed in 2021.

Together, these sources allow ADECA to expand assistance beyond standard levels, reaching more households and covering a broader portion of energy-related costs. 

The goal is simple: reduce the risk of households falling behind on utility bills during extreme weather.

Governor Ivey said the funding helps ensure assistance remains available when temperatures rise or fall to uncomfortable levels, particularly for people living on very limited incomes.

Who the Program Is Designed to Support

State officials emphasized that the grants focus on residents facing the greatest challenges paying for energy. 

That includes households with seniors, people with disabilities, and families caring for young children.

ADECA Director Kenneth Boswell said the program centers on emergency assistance for residents with the lowest incomes, especially during periods when energy use becomes unavoidable. Heating and cooling can quickly become one of the largest monthly expenses, especially in homes that rely heavily on electricity.

For many families, even short-term help can provide breathing room during months when utility bills climb.

Local Agencies Will Handle Applications

Rather than processing applications centrally, the state relies on 18 local community action agencies to manage the grants. You can check the list here.

These organizations accept applications, verify eligibility, and distribute assistance within their service areas.

Application periods are set individually by each agency, and ADECA noted that funding availability may vary based on timing and demand. 

Residents interested in applying are encouraged to contact their local agency directly for details on enrollment windows and required documentation.

This local approach allows agencies familiar with community needs to handle requests directly and respond more quickly when assistance becomes available.

Funding Amounts Across the State

Grant amounts vary by region based on population and demand. 

In south Alabama, Mobile Community Action received $3.8 million to serve residents in Mobile and Washington counties. 

Neighboring counties in Baldwin, Clarke, Conecuh, Escambia, Marengo, Monroe, and Wilcox will be served by the Community Action Agency of South Alabama, which received $2.8 million.

Other notable allocations include $9.27 million for northeast Alabama counties, $4.27 million for west Alabama counties, and $2.2 million for Montgomery County. 

Smaller counties received targeted funding scaled to local needs, ensuring statewide coverage.

Each agency listed by ADECA includes a dedicated phone number for inquiries, allowing residents to connect directly with the office serving their county.

As temperatures continue to fluctuate across Alabama, the new funding provides a timely boost for households managing rising utility costs, reinforcing a support system designed to step in when energy bills hit hardest.

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