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The multidimensional nature of energy insecurity can manifest as being unable to pay energy bills, trading off food and medicine, and unhealthy temperatures at home that prompt medical attention. While redistributive welfare policies are designed to correct the disadvantages and marginalization resulting from social inequality, many policies continue to reinforce the patterns of marginalization. Despite the high energy burden of racial minorities and the general understanding that welfare policies in the U.S. are afflicted with structural racism, we know little about the distributional impact of energy assistance programs across racial groups. By utilizing responses from the 2020 Residential Energy Consumption Survey (RECS), this work analyzes the feedback effects of participation in the Low-income Home Energy Assistance Program (LIHEAP) to understand if the program that is intended to be race-neutral is truly so, or if it perpetuates the marginalization of racial minorities. Results indicate that most racial minorities are experiencing greater and persistent energy insecurity as compared to Whites. Among income-eligible households, Blacks and American Indians are more likely to participate in home energy assistance programs than Whites. However, participation does not lead to improved energy security and results in persistent hardship and long-term negative impacts on social inclusion.