Many Texans are feeling the heat this summer when they open the electricity bill. Family budgets are being tested by the high cost of cooling a home through record heat, leaving households wondering how to balance the budget with keeping the A/C running. Some relief is on the way. Governor Greg Abbott recently announced a historic amount of energy assistance funding for Texas households.

Governor Abbott announced on June 9, 2026 that Texas would receive $166 million in federal energy assistance funds. The Texas Department of Housing and Community Affairs (TDHCA) administers these federally funded energy assistance programs. Beginning January 1, 2027, eligible Texans can receive funds to pay utility bills, weatherize homes, and upgrade heating and cooling appliances.

This post is written for Ambit Brand customers, which is Texas households and small businesses shopping for retail electricity plans on the deregulated ERCOT market. It explains what the state is funding, who qualifies, how to apply, and what a Texas family can do until the TDHCA funds become available in January.

Funding Breakdown

Texas received $166 million in federal funding from two long-standing programs. TDHCA administers both at the local level. CEAP is the LIHEAP-funded utility bill assistance program, and the Weatherization Assistance Program (WAP) funds work that makes homes more energy efficient.

Per the Governor's June 9 announcement and the follow-up notice from TDHCA, funds may be used for: assistance with utility bills (past due or future electric, gas, or propane bills), weatherization work (insulation, air sealing, duct sealing), repair or replacement of health and safety related heating, cooling, and refrigeration equipment, and consumer counseling and case management for budgeting energy costs.

TDHCA does not take applications directly. Each of Texas' 254 counties has a local subrecipient agency (usually a city, county, or nonprofit community action agency) that distributes all funds. Related context: Texas utility shutoffs are rising, and knowing your relief options before a notice lands makes a real difference.

Who Is Eligible for CEAP and Weatherization Assistance

LIHEAP sets a national income ceiling of 150 percent of the Federal Poverty Level, and TDHCA uses that for CEAP. For 2026, a one person household is approximately $29,480; two people is $39,920; three is $50,360; and four is $60,800. For larger households, add about $10,440 for each additional person. TDHCA will release the 2027 income table before the funds become available in January.

To qualify, you do not need to already be behind on your bill. Households with a disconnection notice, a scheduled shutoff, or a documented medical need are prioritized, but any Texas family with income under the requirement may apply for help with a future bill. Both renters and homeowners qualify.

You still qualify if your income is below the limit, whether you own solar, are a customer on Texas Solar Buyback, or are on a fixed rate through 2027. The program looks at income, not what electricity plan you are on.

When and How to Apply

The best step for Texas families who believe they may qualify is to call 2-1-1 or 800-500-7074. The 2-1-1 line is a free statewide help line, and a case worker will match your ZIP code with the county CEAP provider for your location.

After finding your local agency, ask three questions. First, are you accepting CEAP or LIHEAP applications now, or should I call back after January 1, 2027? Second, what documentation do I need? That is usually a photo ID, proof of income from the last 30 days, a recent copy of your electricity bill, and Social Security cards for everyone in the house. Third, prior to the new funds opening, is there any interim assistance available right now?

Local agencies know what they have in stock. Some still have leftover funds from earlier LIHEAP cycles and can help immediately. Others will start waiting lists for the January 2027 funding. A full list of CEAP contract holders is available at tdhca.texas.gov.

Calling early will not be penalized, and there is no fee to apply. If anyone tries to charge you a fee to help you apply, it is a scam.

What Texas Households Can Do About Their Summer Bill Right Now

Waiting six months is a long time, especially when the hottest bills of the year land between July and September. Here are five practical moves any Texas household can make this week to lower the number on the next bill, no matter what your income is.

Read the Electricity Facts Label on your current plan. Every retail electricity plan in Texas comes with an EFL that lists out the energy charge, the base charge, and the TDU delivery charge by level of usage. A lot of families are on a plan that penalizes high summer usage and never notice. Plans designed for higher usage are the better choice for anyone using above 1,000 kWh per month. If you have never read one carefully, our line-by-line EFL walkthrough shows what to look for. Delivery charges specifically have moved this year, as we covered in why your Texas electric bill jumped in June 2026.

Check your contract expiration date. If your fixed-rate contract has expired and you have rolled to a month-to-month rate, your kWh price may have jumped significantly. Rolled-over month-to-month rates are often the most expensive product a retailer offers. Locking in a new fixed-rate plan like Ambit's Lone Star Classic, or moving to a straightforward variable option like Lone Star Flex, can rein that in. Our fixed vs variable guide walks through which fit which household.

Shift heavy usage into off-peak hours. The 3 to 7 p.m. window is where a lot of households run dishwashing, laundry, pool pumping, and EV charging. If your family already uses a lot of overnight or weekend electricity, a plan with free nights or free weekends may cut a meaningful percentage off your bill without changing anything about the house itself. See our free nights vs free weekends comparison to see which pattern matches your household.

Set the thermostat one to two degrees higher on days when the house is empty. The U.S. Department of Energy notes that raising the thermostat during hot weather delivers meaningful cooling savings, especially when the house is empty for eight hours a day.

Ask your current provider about a payment plan before you fall behind. Every retail electric provider in Texas has to offer a deferred payment plan under Public Utility Commission of Texas rules if you request one in good faith. Getting on a plan before a shutoff notice arrives is easier than fighting one after.

The Bigger Picture

$166 million is real help, but it is not a full solution for a Texas summer. Think of it as a safety net for the households that need it most while the rest of the state deals with rising delivery charges, a growing grid, and record peak demand. Plan choice is still the single biggest lever a Texas family controls, and the summer months are when a poorly matched plan hurts the most.

Households within the income limits should put a reminder on the calendar for January 1, 2027 and make the 2-1-1 call now to get on the local agency's list. Households above the income limits should use the summer to review the Electricity Facts Label, the contract expiration date, and the household's usage pattern. Both paths lead to the same place: a lower bill in August.

Rates and plan availability change. Plan details and Electricity Facts Labels are provided upon request as of July 14, 2026, and enrollment is subject to credit approval. Ambit Energy offers Lone Star Classic, Lone Star Flex, Free and Clear Nights, and Texas Solar Buyback plans through vipenergyservice.com. Earnings vary for Ambit consultants, and this article covers Ambit Brand plan choices for Texas customers, not the consultant opportunity.

Sources

• Texas Governor's Office. "Governor Abbott Announces $166 Million in Energy Assistance Funds." June 9, 2026. gov.texas.gov
• Texas Department of Housing and Community Affairs. "Comprehensive Energy Assistance Program (CEAP)." tdhca.texas.gov/comprehensive-energy-assistance-program-ceap
• Texas Department of Housing and Community Affairs. "Help for Texans." tdhca.texas.gov/help-for-texans
• Texas 2-1-1 statewide help line. 211texas.org
• U.S. Department of Energy. "Thermostats." energy.gov/energysaver/thermostats