LIHEAP alone no longer qualifies households for utility deduction starting Nov. 1 

SANTA FE – Starting Nov. 1, new federal requirements will change how energy assistance is counted when determining Supplemental Assistance Nutrition Program (SNAP) benefit amounts for more than 32,000 New Mexicans.  

The change, required under federal law H.R.1, affects how energy assistance payments are applied during SNAP eligibility determinations. The New Mexico Health Care Authority (HCA) is helping SNAP customers understand and prepare for these federally required changes so households who remain eligible for the energy expense deduction continue to receive it. 

“We’re reaching out early so families have time to prepare,” said Niki Kozlowski, Income Support Division director at the HCA. “If you’re unsure how this affects you, please contact us now, before your next renewal date, so we can walk you through what you may need to provide.” 

What you need to know: 

• If your household includes someone 60 years or older, or a person with a disability: You will continue to receive the deduction, known as the Heating and Cooling Standard Utility Allowance, if you receive assistance from the Low Income Home Energy Assistance Program (LIHEAP) or another home energy assistance program. These payments will not be counted as income when the HCA calculates SNAP benefits. 
• If your household does not include someone 60 years or older, or a person with disability: You must notify the HCA if you pay your own heating or cooling bills. If proof is needed, you can provide a utility bill, lease, or landlord letter. Receiving LIHEAP alone will no longer qualify your household for the utility deduction. If someone else pays your utilities, that amount counts as income and the deduction will not apply. 

The new rule applies the next time you apply for or renew benefits on or after Nov. 1. Current SNAP benefits will not change before then.  

This federal change may cause some individuals and families to lose the standard home heating and cooling cost deduction, which could result in lower monthly SNAP benefits. 

Need help? Visit your local HCA field office, call 1-800-283-4465 (Monday-Friday, 7 a.m.–6:30 p.m.), or visit hca.nm.gov/updates-about-federal-changes for more information. 

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About the New Mexico Health Care Authority
The New Mexico Health Care Authority connects New Mexicans to the care and support they need to live healthy, full lives. The agency administers Medicaid, the Supplemental Nutrition Assistance Program (SNAP), the Low-Income Home Energy Assistance Program (LIHEAP), cash assistance, child support services, and behavioral health care across the state. HCA also oversees the State Health Benefits program for state employees and manages the Health Care Affordability Fund to help make coverage more affordable for working families. The agency licenses health care facilities, investigates complaints, and ensures providers deliver safe, high-quality care. In addition, HCA supports individuals with intellectual and developmental disabilities through a variety of home and community-based programs that protect health, safety, and human rights.