ST. PAUL, MN –  Today, the Biden administration announced the state may use American Rescue Plan (ARP) funds to provide relief to some consumers facing higher energy costs. The announcement allows funds to support Low-Income Home Energy Assistance Programs (LIHEAP) but did not address the needs of middle-class Minnesotans who are also struggling under President Biden’s energy policies and the highest inflationary costs in 31 years. 

“Inflation is an emerging concern for many Minnesotans.  Everyone’s dollar is worth less, not just the dollars of low-income families,” said Senate Energy Committee Chair Dave Senjem (R-Rochester). “I greatly welcome additional money into the Low-Income Home Energy Assistance Program to keep people warm this winter, but all Minnesotans deserve reliable and affordable energy, and we should be advancing policies that recognize the needs of all consumers as well as pursuing cleaner energy sources.”

Inflation and energy is a major concern heading into winter. Earlier this month the Star Tribune reported Xcel and CenterPoint both requested a 6.5% rate increase for next year while their customers are already paying about $10 more each month to cover the cost of the February ice storm in Texas. Minnesota Power filed a 17.5% rate increase request, raising consumer costs by an average of $15 per month. Natural gas costs are already 70% higher than last year, inflation is making everyday needs less affordable and higher energy costs present a serious challenge for all families and a dire outlook for low and fixed-income families.  

“The policies from the Biden Administration to limit reliable and affordable domestic energy resources for Minnesotans are a top driver to increasing energy costs,” Senjem continued. “Today’s announcement is a band-aid approach that doesn’t help all the Minnesotans who will struggle with skyrocketing energy costs this year.”