Self-Managed Energy Assistance: Reimagining LIHEAP Delivery

This randomized controlled trial of 1,000 low-income households in Illinois evaluates whether a self-managed Low Income Home Energy Assistance Program (LIHEAP) delivery model reduces energy insecurity. Despite significant federal and state investments, only 30% of energy-burdened Illinois households receive assistance, leaving over 550,000 eligible households unserved (Pavey, 2024). Our intervention transforms traditional LIHEAP delivery from a one-time, lump-sum utility payment to a proactive model that gives recipients control over benefit allocation via text-message throughout the year. This approach leverages behavioral economics insights about present bias, liquidity constraints, and the value of timing flexibility to improve program effectiveness without additional costs. This RCT builds on a successful 31-household proof-of-concept in Flint, Michigan, which demonstrated promising outcomes: a 60 percentage point increase in bills paid-in-full and 77% of participants avoiding energy debt for a full year. The study will employ stratified randomization across geographic, household composition, and housing characteristics. Primary outcomes include disconnection rates, on-time payments, energy consumption, arrearages, and energy burden, with secondary outcomes measuring financial stress and thermal comfort. The intervention represents a cost-neutral innovation that could transform energy assistance delivery for millions of vulnerable households nationwide while building recipient financial capability and self-efficacy.