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Adds a new subsection (d) to section 414 establishing a 'Weatherization Readiness Fund' from which the Secretary shall distribute funds to States receiving financial assistance under this part, describes permitted uses (repairs to dwelling units with significant defects or hazards to enable weatherization), and authorizes appropriations.
Makes multiple amendments to subsection (c) (financial assistance / State average cost per unit): replaces a stated dollar amount in the introductory matter to paragraph (1), adjusts wording in paragraph (2) to require units be 'fully weatherized,' increases the amount in paragraph (4) from $3,000 to $6,000, adjusts internal cross-references (redesignates paragraph (6) as (7)), and inserts a new paragraph (6) allowing the Secretary to increase per-unit financial assistance beyond the limit in paragraph (1) when market conditions require.
Conforming amendment to subsection (b)(1)(C) updating an internal citation from '415(c)(6)(A)' to '415(c)(7)'.
Creates a new Weatherization Readiness Fund within the Weatherization Assistance Program to give States dedicated money to repair homes that currently have structural defects or hazards that prevent weatherization work. Authorizes $30 million per year for fiscal years 2026–2030 and updates the program’s financial-assistance rules, including adjusting wording and dollar amounts and allowing the Secretary to raise the per-unit assistance limit if market conditions require it.
Establish a fund called the Weatherization Readiness Fund. The Secretary shall establish a fund, to be known as the Weatherization Readiness Fund, from which the Secretary shall distribute funds to States receiving financial assistance under this part in accordance with subsection (a).
Use of Weatherization Readiness Fund: States must use funds for repairs to dwelling units to remediate structural defects or hazards so weatherization measures may be installed.
Definition of eligible dwelling unit for fund use: a dwelling unit occupied by a low-income person that, on inspection under the program, was found to have significant defects or hazards that prevented installation of weatherization measures.
Authorization of appropriations for the Weatherization Readiness Fund: In addition to amounts authorized under section 422, there is authorized to be appropriated to the Secretary $30,000,000 for each of fiscal years 2026 through 2030 to carry out this subsection.
Amend Section 415(c) (Financial assistance) by replacing the first-sentence numeric amount and replacing the (c) text. The amendment text includes striking “$6,500” and inserting “inserting5,000”, and replacing the (c) Financial assistance text so paragraph (1) begins: “Except as provided in paragraphs (3), (4), and (6);”. (Text as presented in the section.)
Who is affected and how:
Low- and middle-income households: Many weatherization programs prioritize low- and moderate-income households; this fund helps households with homes that currently cannot be weatherized due to structural defects or hazards by paying for the repairs that make them eligible. That should increase the number of households that ultimately receive energy-efficiency upgrades and lower energy bills.
Homeowners and Renters: Owners of eligible single-family homes and rental properties with qualifying defects can benefit when States use readiness funds to repair conditions that prevented weatherization; renters may benefit indirectly if landlords use funds or if State programs address rental units.
State Governments and Weatherization Program Agencies: States (and their subgrantees) administer weatherization grants and will receive, prioritize, and oversee readiness funds. Agencies will need processes to screen, approve, and manage repair projects and to document that readiness work enables subsequent weatherization.
Contractors and Home-repair Workforce: Local contractors and tradespeople who perform repairs and weatherization work may see increased demand; procurement and workforce capacity will affect rollout speed.
Department of Energy / Secretary: DOE must incorporate the new fund into program guidance and exercise new discretion to raise per-unit assistance limits when market conditions warrant.
Overall effects: The measure is intended to expand the pool of homes that can receive weatherization by removing physical barriers, increasing energy-efficiency outcomes and likely lowering household energy costs. Key implementation challenges include State capacity to identify eligible units, manage readiness repairs, prioritize funds equitably, and ensure coordination between repair and later weatherization activities. The authorized funding is modest relative to nationwide need but should clear many individual barriers to weatherization at the household level.
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Read twice and referred to the Committee on Energy and Natural Resources. (Sponsor introductory remarks on measure: CR S2477-2478: 2)
Introduced April 8, 2025 by John F. Reed · Last progress April 8, 2025
Read twice and referred to the Committee on Energy and Natural Resources. (Sponsor introductory remarks on measure: CR S2477-2478: 2)
Introduced in Senate