Minnesota Department of Commerce says energy costs could soon go up

Minnesotans are looking at potentially higher energy costs under new proposed federal budget cuts.

Currently, Minnesota’s Energy Assistance Program is funded by the federal Low-Income Home Energy Assistance Program.

The proposed federal budget for 2026 calls for the elimination of that program.

The Minnesota Department of Commerce says this cut would mean Minnesota would lose about $125 million in funds each year.

These funds help more than 125,000 households pay their utility bills each winter.

“Without energy assistance, thousands of Minnesotans would face higher energy costs,” said Grace Arnold, the Minnesota Commerce Commissioner. “And beyond that, they would be at risk of having their utilities shut off in the middle of winter, receiving no help when their furnace breaks, and have no heat in the middle of winter. Or being forced to choose between heating their homes and buying groceries or medicine.”

Officials stress that the potential cuts could impact much of northern Minnesota due to our higher energy costs, especially in the winter months.