Government releases $1.2 billion in heating subsidies

WASHINGTON (Reuters) - The U.S. government on Tuesday released $1.2 billion to states to help low-income families pay their heating bills.

The Department of Health and Human Services, which oversees the energy assistance program, said it released such a large sum of money to ensure states have the resources to help residents cope with freezing temperatures across the country and high unemployment rates.

"The release of these funds will assist millions of Americans who may not be in the position to afford heating costs during these cold winter months," HHS Secretary Kathleen Sebelius said in a statement.

The Low Income Home Energy Assistance Program, commonly known as LIHEAP, was allocated $5.1 billion for fiscal year 2010, including more than $590 million in emergency funding.

Last week, a department spokesman said the agency will likely also release some of these emergency funds in the next few weeks, to supplement the block grants already being distributed.

Led by Democrat Jack Reed of Rhode Island and Republican Olympia Snowe of Maine, a group of 48 Senators have called on the Obama administration to release the emergency funding as soon as possible in light of recent cold weather and the economic crisis.

(Reporting by Ayesha Rascoe; Editing by Marguerita Choy)