Congress Faces Budget Showdown Impacting Low-Income Families

• Congress budget showdown includes WIC and LIHEAP funding.

• WIC needs $1 billion to meet rising demand for 6.7 million recipients.

• States may face waitlists and benefit cuts for WIC recipients.

Scenes on the hill as U.S. Congress runs low on time to avert a partial government shutdown

Reuters

Congress is gearing up for a budget showdown with the latest stopgap measure expiring next month. This showdown includes crucial funding for programs like the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) and the Low-Income Home Energy Assistance Program (LIHEAP), which assist low-income individuals with food and energy costs. WIC, serving 6.7 million women and children, requires an additional $1 billion to meet rising demand, as stated by the United States Department of Agriculture.

If Congress fails to act, states administering WIC may face tough decisions, potentially leading to waitlists and benefit cuts for the first time in 30 years. The Center on Budget and Policy Priorities estimates that around 2 million children and mothers nationwide could be affected, disproportionately impacting Black and Hispanic families.

LIHEAP, which helped a record 7.1 million households in fiscal year 2023, is seeking to maintain its funding at $6.1 billion. However, with energy prices remaining high and states cutting back on assistance programs, over a million households could lose support. A significant 16% of households are already behind on energy bills, totaling $20.3 billion in unpaid debt by December 2023.

3

WIC needs $1 billion to meet rising demand for 6.7 million recipients.

3

Congress budget showdown includes WIC and LIHEAP funding.

3

States may face waitlists and benefit cuts for WIC recipients.

Additionally, the House passed a bill in January to enhance the child tax credit, potentially lifting 400,000 children out of poverty in its first year. The bill aims to increase the refundable portion of the credit, providing more financial relief to families. However, the Senate has yet to vote on the bill, with concerns raised about its cost and impact on tax relief for working Americans.

As these critical budget issues remain unresolved, millions of Americans could face challenges accessing essential nutrition and energy assistance. The fate of these programs and the child tax credit now rests in the hands of Congress, with uncertainties surrounding funding levels and potential impacts on vulnerable populations.