The bill amends the eligibility requirements for the Low-Income Home Energy Assistance Program (LIHEAP) in Iowa, allowing households with a gross income of up to 250% of the federal poverty level to qualify. This change is applicable to households residing in electric utility service territories where rates for electricity have increased between July 1, 2023, and July 1, 2025. Additionally, the bill stipulates that a household's eligibility will terminate four years after the rate increase in their service area.

To support the increased administrative costs associated with the expanded eligibility, the Department of Health and Human Services (HHS) is required to assess a fee on electric utilities. Nonprofit electric utilities may pass this fee onto non-participating ratepayers, while for-profit electric utilities are prohibited from charging their ratepayers for this fee. The bill aims to enhance support for low-income households facing rising energy costs while ensuring that the financial burden of program administration is appropriately managed.