Federal Cuts and Climate Pressures Deepen Energy Poverty Crisis in Maryland
Maryland faces a growing energy poverty crisis as federal cuts to assistance programs and climate-driven heatwaves force hundreds of thousands of households to choose between basic utilities and other essentials.
The collision of climate-driven heatwaves, aging housing infrastructure, and soaring utility bills with federal cuts to critical support programs has created an energy poverty crisis affecting hundreds of thousands of Maryland households. HR 1, signed into law on July 4, enacted devastating cuts to the Low Income Home Energy Assistance Program (LIHEAP), Medicaid, SNAP, and Children's Health Insurance Program, eroding the safety net that keeps vulnerable families alive during extreme weather conditions.
LIHEAP, launched 45 years ago to help low-income households pay utility bills, faces reduced funding despite the persistent crisis it was designed to address. The U.S. Energy Information Administration reported that 17 million Americans received utility shutoff notices last year, highlighting the scale of the problem. When households spend more than 6% of their income on utilities, they enter energy poverty, and a national assessment by the American Council for an Energy-Efficient Economy found low-income families spend 8.1% of their income on energy—more than three times the rate for wealthier households.
Maryland faces particularly severe challenges, with nearly 20% of households spending over 6% of their income on utilities. A 2023 report from the Institute for Energy and Environmental Research found that more than 18% of households were trapped in energy poverty, and in 2024, Maryland's Office of Home Energy Programs received 270,000 applications for assistance. The South Atlantic region, from Maryland to Florida, bears the greatest share of energy burden yet receives minimal federal relief.
Under HR 1, Section 10004 restricts the Standard Utility Allowance used to determine SNAP eligibility, limiting automatic access to households with elderly or disabled individuals. The Maryland Department of Human Services estimates that more than 684,000 SNAP-dependent residents could lose both food assistance and utility relief. The FY2026 federal budget proposes eliminating LIHEAP outright, abandoning over 270,000 Maryland households during extreme weather events.
Governor Wes Moore has responded with policy measures including a $19 million energy relief fund and the Next Generation Energy Act, which sets targets for new renewable capacity and battery storage while capping ratepayer impacts. He also enacted the Renewable Energy Certainty Act, lifting zoning restrictions for solar development. However, the $19 million fund breaks down to less than $75 per household, offering minimal relief against rising utility bills. Progress under the Clean Energy Jobs Act of 2019, which mandates that 50% of electricity come from Tier I renewables by 2030, has slowed due to permitting backlogs and federal policy changes.
Offshore wind development, anchored by the state's Renewable Portfolio Standard and Offshore Wind Renewable Energy Credits, faces threats following federal executive orders freezing new leases and stripping tax incentives through HR 1. As transportation emissions rise and funding gaps persist, the state's climate agenda risks shifting the burden onto communities already hardest hit by energy poverty, making immediate and comprehensive policy action essential for protecting vulnerable Maryland residents.