We’ve heard the quip that Democrats haven’t found a problem they couldn’t throw money at thousands of times, but there’s truth to the remark. The latest example of this phenomenon is the Biden administration’s response to rising energy costs.
Vice President Kamala Harris is announcing that $13 billion in federal funds from the “Inflation Reduction Act” (keep reading once you’ve stopped laughing) will go to help low-income families weatherize their homes in preparation for cold temperatures this winter.
“This includes providing direct consumer rebates for installations of heat pumps, heating, ventilating, and air conditioning systems, and water heaters, as well as for upgrading electrical wires,” reports the Washington Examiner. “The funds will also provide direct assistance to help with high heating costs through the Low Income Home Energy Assistance Program, or LIHEAP.”
One administration official said that the funds “will enable up to 1.6 million homes to make critical upgrades to their homes installing up to 500,000 heat pumps,” adding, “President Biden’s economic plan is helping households access energy efficient equipment the next time they need to make home repairs so they can save money on their utility bills — not just this year but for years to come.”
“Years to come” is right. The White House hypes this program as one that will save recipients $1 billion a year, which means that the initiative will take 13 years to pay for itself. That’s government efficiency at its finest.
Energy costs have risen and will continue to do so this winter. The National Energy Assistance Directors’ Association (NEADA) says that American families will pay 17.8% more to heat their homes this winter.
The “average cost of home heating is estimated to increase by 17.8% since last winter heating season from $1,025 to $1,208,” reads a NEADA report. “This would be the second year in a row of major price increases. Between the 2020-21 and 2022-23 winter heating seasons, the cost of home energy has increased by 36%.”
The report also points out that “these are the highest prices in more than 10 years.”
Related: In Biden’s America, 1 in 6 U.S. Households Can’t Afford Their Energy Bills
The U.S. Energy Information Administration (EIA) predicts that households will pay more in home heating costs under most circumstances this winter.
“Many households across the United States are likely to spend more on energy in the winter of 2022–23 compared with recent winters, reports the EIA’s Winter Fuels Outlook. “Higher forecast energy expenditures are the result of higher fuel prices, combined with higher heating demand because of a forecast of slightly colder weather than last winter.”
Moreover, lower-income American families are behind on their utility bills. One in six households is behind on its electric bills, and NEADA notes that as of August, “the national arrearage balance totals almost $16.1 billion.” This has been the case for about a year, and increasing energy prices won’t help the situation.
Biden administration policies are responsible for this rise in energy costs and are at least partly to blame for families being unable to pay their bills. Runaway spending has led to inflation, and families are finding that their paychecks don’t go as far as they used to. Yet this administration continues to spend taxpayer money hand over fist.
Throwing money at the problem won’t help American families, especially when these families will be on the hook for the next thirteen years before the plan pays for itself. It’s also unlikely that the administration will be able to implement this program in time for recipients to reap the benefits this winter, which experts say could be slightly colder than recent winters.
But who cares whether the program will be effective? It’s only money that the White House is burning, and there’s no doubt the administration thinks burning that cash could turn into votes next week.
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