HUNTSVILLE, Ala. — About 250 Huntsville Utilities customers were hit with an unexpected $100 surcharge on their electricity bills this month after an executive order from President Donald Trump froze federal funding meant to assist low-income households with energy costs.
The funding, part of a $1 million allocation under the Infrastructure Investment and Jobs Act (IIJA), had provided supplemental $100 grants to eligible households already receiving aid through the Low-Income Home Energy Assistance Program (LIHEAP). The grants were rescinded following Trump’s “Unleashing American Energy” order, which paused disbursement of funds tied to the IIJA and other federal programs. Huntsville Utilities confirmed the surcharge in letters sent to affected customers, explaining that the previously applied credit was now invalid and would be added to their next bill.
The executive order has drawn sharp criticism from local leaders and advocates, who argue it contradicts Trump’s campaign promises to lower energy costs. Instead, residents like those in Huntsville are now bearing the financial burden.
While Alabama still receives $53 million annually for LIHEAP from the Department of Health and Human Services, the supplemental IIJA funding was intended to provide additional relief during a time of rising utility costs. To qualify for LIHEAP assistance, households must earn less than 150% of federal poverty guidelines or 60% of the state median income—criteria that apply to many struggling families in north Alabama.
Huntsville Utilities has urged residents impacted by the surcharge to contact local community action agencies for emergency assistance.
For now, Huntsville residents are left grappling with higher bills—a stark reminder of how federal policy decisions can hit home.