CONCORD — Community agencies are set to start releasing heating assistance subsidies this week, but state officials are limiting aid to only the most needy households due to a major reduction in federal funding.

Under guidelines issued this week by the state Office of Energy and Planning, Community Action agencies are to release heat subsidies only to households whose incomes are below 125 percent of the federal poverty level. Those making up to 200 percent of the poverty level can be placed on a wait list for assistance, as state officials and members of the congressional delegation press for additional aid.

The federal government has cut funding for the Low Income Home Heating Program, known as LIHEAP, nearly in half this year, to $14.7 million.

“In order to protect the health and safety of New Hampshire citizens, we will target funding to families most vulnerable to being left out in the cold,” Joanne Morin, director of the state energy office, said in a statement. “We will also continue to push President Obama and Congress to adequately fund heating assistance for struggling families.”

The price of a gallon of fuel oil is about a dollar higher than it was last year. At current prices, heating a home with an oil-burning furnace could cost at least $800 more this winter than last year.

Should they face an immediate cut-off of heat, all households that make up to 200 percent of the poverty level will be eligible for emergency benefits.

Because of the change in eligibility for LIHEAP aid, the state energy office said fuel vendors may not receive official notifications until next week.