Under H.R. 1, receiving a LIHEAP fuel assistance payment no longer automatically qualifies a household for a higher Standard Utility Allowance (SUA) — unless the household includes an older adult or a person with a disability. It also prohibits states from including internet costs in the SUA.
H.R. 1 Makes Modern Life More Costly
Together, H.R. 1’s changes to the Standard Utility Allowance would strip support for essential household costs from families with low incomes.
Restricting LIHEAP-based eligibility means many families would lose out on needed food assistance dollars, even if they face high energy costs; the impact will be particularly severe in areas with high living expenses or extreme weather, where utility burdens are already disproportionately heavy.
And prohibiting states from including internet costs disregards growing evidence that digital access is a basic necessity for economic mobility and household stability.
Previously, federal SNAP law allowed certain utility costs to be factored into benefit calculations using a standardized method known as the Standard Utility Allowance (SUA). Many states use an existing option to simplify this process by automatically granting the SUA to households that receive fuel assistance through the Low-Income Home Energy Assistance Program (LIHEAP).
In 2024, the U.S. Department of Agriculture (USDA) updated SNAP rules to allow internet expenses to be included in the SUA.
This change recognized the essential role of internet access in modern life — particularly for households with low income seeking employment, attending school, or participating in job training programs.
How States and Localities Can Prepare
Cut red tape so working families can demonstrate exemptions without burdensome documentation
Support individuals who have difficulty providing documentation
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