Expand funding to the Minnesota Energy Assistance program

 

 

The purpose of this bill is to expand the Minnesota Energy Assistance Fund to ensure that the state’s most vulnerable

residents can maintain essential utilities and avoid falling into or furthering financial debt. This expansion will

support Minnesotans who are currently enrolled in Medical Assistance, qualify for SNAP benefits, rely on Social

Security, or live below the poverty line. While the Energy Assistance Fund currently serves approximately 125,000

households, an estimated 514,000 households in Minnesota live below the poverty line. leaving roughly 389,000 families

at risk of financial insecurity. By increasing funding, this bill will help more qualifying households afford their

utility costs and maintain stability. The Minnesota Department of Commerce, which currently administers the program,

will continue to manage it under this expansion.

 

 

Currently, Minnesota’s Energy Assistance Program supports approximately 125,000 households. Of these, 44% are

individuals over the age of 60, even though there are more than 1.1 million Minnesotans in that age group. Additionally,

39% of assisted households include a person with a disability, while the state has over 594,000 residents with

disabilities. 18% of participating households have children under age 6, according to census data Minnesota is home to

about 1.2 million children, with 12.9% living below the poverty line. Although Minnesota’s cold weather laws prevent

utilities from being shut off during the winter months, unpaid bills continue to accumulate, leaving many families with

significant debt once the protection period ends. This bill seeks to expand eligibility for the Energy Assistance

Program, enabling more households to access vital support and maintain their utilities year round.

 

 

Minnesota Energy Assistance program- The Minnesota Energy Assistance Program (EAP) is a state-administered program that

helps income-qualified households pay for home heating costs and furnace repairs.

Poverty line- A poverty line is a minimum income threshold used to determine if a person or family is living in poverty.

Financial insecurity- Financial insecurity is the state of uncertainty and anxiety about being able to meet financial

needs, both present and future

 

 

Funding for this program will come from a half percentage point tax on Minnesotans making over $400,000 a year.

According to the World Population report, 45,660 people are making over $400,000 in the state of Minnesota, increasing

the fund by $91,320,000. Almost doubling the current fund, assisting an additional 125,000 Minnesota households

 

 

Under this bill, there are no penalties for non-compliance, as funding is acquired through taxation.

 

This bill will become effective on January 1st, 2027