by 
Michigan Senate unanimously approves SB 435 to modernize heating credit inflation measure, protecting over 250,000 low-income households.
LANSING, Mich. — Michigan lawmakers took a unanimous step toward safeguarding winter energy affordability for vulnerable residents on Aug. 13, 2025, passing Senate Bill 435 with broad bipartisan support. The legislation, sponsored by Senate Majority Floor Leader Sam Singh (D-East Lansing), updates how the state adjusts its annual Home Heating Credit for inflation by replacing an obsolete measure with a more comprehensive federal index.
The bill would replace the Detroit Consumer Price Index (CPI) for Fuels and Other Utilities—slated for discontinuation by the U.S. Bureau of Labor Statistics—with the U.S. CPI for Household Energy, a broader measure capturing national heating fuel cost trends.
“As everyday costs continue to rise and Michiganders increasingly feel the stress of trying to make ends meet, we need to make sure our seniors and families around the state have a strong safety net to rely on,” Singh said in a statement following the vote. “For the hundreds of thousands of Michigan households who depend on the Home Heating Credit to keep warm in the wintertime — this legislation is a no-brainer.”
How the Home Heating Credit Works
The Michigan Home Heating Credit reduces energy costs for more than 250,000 low-income households by offering an annual tax credit to offset home heating expenses. Eligibility is based on household income, size, and a resource test, with thresholds currently adjusted annually using the Detroit CPI for Fuels and Other Utilities.
Under SB 435, the Michigan Department of Treasury would instead apply the U.S. CPI for Household Energy when calculating annual adjustments. The index swap ensures continued accuracy in benefit levels, reflecting real-world changes in heating fuel costs rather than relying on a discontinued, region-specific measure.
The change will take effect only if approved by the Michigan House and signed into law by the governor. Treasury would then implement the updated calculations in its seasonal heating assistance program.
Why the Update Matters for Michigan Residents
The Detroit CPI for Fuels and Other Utilities is being phased out due to evolving Bureau of Labor Statistics methodologies, leaving Michigan lawmakers with the task of identifying a suitable replacement. The U.S. CPI for Household Energy covers electricity, natural gas, and heating oil costs nationwide, offering a more stable and reliable measure.
Energy cost volatility remains a pressing concern in Michigan, particularly in colder regions such as the Upper Peninsula and rural Thumb communities where winter fuel needs can consume a disproportionate share of household income. Aligning the heating credit to a national CPI index provides a safeguard against under-adjusted benefits during periods of rapid energy price inflation.
Political Context and Bipartisan Cooperation
SB 435’s unanimous passage in the Senate underscores bipartisan agreement on the need to protect heating affordability. This is not the first move toward energy cost relief: in December 2024, Gov. Gretchen Whitmer signed legislation expanding utility bill assistance eligibility and promoting long-term affordability measures.
Sen. Singh framed the bill as part of a broader commitment to safeguarding essential needs: “By making this necessary change to account for upward inflation, we can ensure our folks who are facing financial challenges can continue to access the resources they need now and into the future.”
Next Steps
The bill now moves to the Michigan House for review. If approved, the Treasury will integrate the new CPI measure into the Home Heating Credit program in time for the next heating season.
Advocates for low-income households say the change is overdue. A more accurate inflation measure helps ensure benefits keep pace with actual energy market conditions—critical for seniors, people with disabilities, and working families on tight budgets.
Related Coverage and Broader Context
- Michigan Home Heating Credit eligibility and application details are available through the Department of Treasury.
- Whitmer’s 2024 utility relief legislation parallels SB 435’s affordability goals (michigan.gov).
- Legislative history and status for SB 435 can be tracked via LegiScan.
Read More Interesting Feature Stories From ThumbWind
- Michigan Feature News Stories – Unveiling the diverse and vibrant people, captivating places, and remarkable events that come together to make the Great Lake State unique.
- Strange Political News – A sarcastic take on official news from around the U.S., exploring the absurdities that often arise in the political landscape while providing a humorous perspective on current events and highlighting the quirks of politicians and policies.
- Michigan Hometown News – News and events from Michigan’s Upper Thumb region worth knowing, including local stories, impactful interviews, and updates on community happenings that shape the culture and lifestyle of the area.
Your Turn – Like This, or Hate it – We Want To Hear From You
Please offer an insightful and thoughtful comment. We review each response. Follow us to have other feature stories fill up your email box, or check us out at ThumbWind News
