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SB 562

Human services: services or financial assistance; percentage of LiHEAP funds used for weatherization assistance; increase. Amends sec. 527a of 1967 PA 281 (MCL 206.527a).

2025-2026 Regular Session Introduced by Mary Cavanagh and 6 co-sponsors

Senate Bill 562 mandates at least 15% of LIHEAP funds for weatherization, boosting energy efficiency for low-income households and reducing future energy costs.

REFERRED TO COMMITTEE OF THE WHOLE WITH SUBSTITUTE (S-2)
#energy:other #humanservices:servicesorfinancialassistance
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Bill Summary · SB 562

Summary of Senate Bill 562 (SB 562)

Title: Human services: services or financial assistance; percentage of LiHEAP funds used for weatherization assistance; increase.
Introduced: September 18, 2025
Status: Referred to Committee of the Whole with Substitute (S-2)
Sponsor: Senator Jeff Irwin
Committee: Housing and Human Services

Purpose and Intent

Senate Bill 562 aims to amend the Income Tax Act to increase the percentage of funding from the Low-Income Home Energy Assistance Program (LIHEAP) that must be allocated for home weatherization assistance. The intent is to enhance the energy efficiency of homes for low-income households, thereby providing long-term energy savings and reducing reliance on short-term financial assistance.

Key Provisions

  • Increase in Weatherization Funding: The bill proposes to eliminate the current ceiling on the percentage of LIHEAP funds that can be used for weatherization assistance, replacing it with a minimum requirement. Specifically, it mandates that at least 15% of the total LIHEAP award must be allocated for weatherization assistance each fiscal year.

  • Removal of Sunset Clause: The bill removes the sunset provision that currently limits the allocation of LIHEAP funds for weatherization, ensuring a consistent funding stream for these services.

  • Impact on Home Heating Credit: The bill's provisions may lead to a reduction in the funds available for the Home Heating Credit, as more resources could be directed towards weatherization. If the entirety of the LIHEAP funds were used for weatherization, it could effectively eliminate the Home Heating Credit for eligible households.

Affected Parties

  • Low-Income Households: The primary beneficiaries of this bill would be low-income households that will receive increased support for weatherization, leading to improved energy efficiency and lower energy costs.

  • Department of Housing and Human Services (DHHS): The DHHS will be responsible for implementing the changes in funding allocation and managing the distribution of weatherization assistance.

Fiscal Impact

The bill is projected to have no direct fiscal impact on state or local revenue. However, it will affect the distribution of federal LIHEAP funds. The total LIHEAP award for Michigan in the fiscal year 2024-25 was approximately $183.3 million. The net impact on the Home Heating Credit remains uncertain, as increased weatherization may reduce energy usage and, consequently, claims for the credit.

Legislative Timeline

  • September 18, 2025: Bill introduced and referred to the Committee on Housing and Human Services.
  • November 4, 2025: Reported favorably with Substitute (S-2).
  • November 5, 2025: Referred to Committee of the Whole with Substitute (S-2).

This summary provides an overview of Senate Bill 562, highlighting its purpose, key provisions, affected parties, and potential fiscal implications. The bill represents a significant shift in how LIHEAP funds are allocated, emphasizing the importance of weatherization assistance for low-income households in Michigan.

Compiled from official sources — confirm details with the bill’s official record.

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