Water associations advise Congress to establish permanent low-income ratepayer assistance

April 27, 2023
Leading water associations AMWA, AWWA, NACWA, and WEF have submitted a memo detailing recommendations for a permanent federal low-income household water assistance program.

Five leading water associations — the American Water Works Association (AWWA), Association of Metropolitan Water Agencies (AMWA), National Association of Clean Water Agencies (NACWA), National Association of Water Companies (NAWC), and Water Environment Federation (WEF) — have submitted formal policy recommendations to Congress and the White House on establishing a permanent federal low-income household water assistance program (LIHWAP), according to an AMWA press release.

As part of their recommendations, the groups released also released a detailed analysis, “Low-Income Water Customer Assistance Program Assessment Study,” which establishes that water affordability is a significant challenge for 20 million U.S. households and puts the annual need for federal funding to address this challenge as high as $7.9 billion.

The water groups’ lead recommendation is that establishing a permanent program by building upon the existing Low Income Household Water Assistance Program (LIHWAP) at the U.S. Department of Health & Human Services is the most viable and practical option at this time.

The associations’ memo is supported by 15 months of research, as well as the collective judgement of water industry experts across the U.S. To support the concept of building on top of the LIHWAP program, the Study includes an examination of existing federal low-income assistance programs, key elements that a water program should have in order to be sustainable, and best practices for structuring a new, permanent program.

“Energy has LIHEAP, food has SNAP and housing has Section 8 but there is no such program to assist struggling, low-income water and wastewater customers,” said Tracy Mehan, AWWA’s executive director of government affairs. “It is time for the federal government to step up and implement a new low-income assistance program for the water and wastewater sectors.”

 “Ensuring access to safe, clean, and affordable water for all Americans should be one of the nation’s top public health priorities,” said Tom Dobbins, AMWA CEO. “That’s why Congress must fund a permanent program to help vulnerable households maintain water service. AMWA stands united with our water sector partners in support of legislation to add residential water service assistance to the federal safety net.”

The LIWCAP Study was conducted between November 2021 and April 2023. It outlines five different potential administrative pathways for structuring a permanent federal low-income water assistance program and the relative advantages and disadvantages of these alternatives.

The study also includes a water affordability needs assessment, including granular detail on the growing prevalence and massive scope of the low-income water affordability challenge nationwide, estimating the current number of water-burdened U.S. households could be as high as 21.3 million. It represents the first detailed analysis to preview the composition, cost, efficacy, and effectiveness of a permanent federal low-income assistance program.

Despite their policy recommendation for a permanent LIWCAP program to be housed at HHS and to build off the existing LIHWAP foundation, the water groups noted that Congress has demonstrated interest in the possibility of a low-income program at the U.S. EPA.

As part of the Bipartisan Infrastructure Law, Congress authorized the establishment of a pilot low-income water assistance program at EPA and has appropriated $3 million to the Agency to assess the scale of national low-income water needs. However, because Congress has not appropriated any funds to date for program implementation, the water sector associations conclude that housing a permanent program at HHS is currently the most viable option to establish a program at this time.

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