As ACF prepares to celebrate World Water Day 2024 this month, the release of this report intends to fill a gap in current knowledge related to water and wastewater affordability in the United States. Additionally, the Water Utility Affordability Survey Report, as well as the LIHWAP Implementation and Impact Report , released in January, can be used to help inform grant recipients’ and stakeholders’ efforts to establish permanent water utility assistance programs at the national, state, and local level.
The survey, conducted by ACF’s Office of Community Services (OCS) for its Low Income Household Water Assistance Program (LIHWAP), includes information from over 1,800 water and wastewater providers across the country, representing the 49 states and the District of Columbia.
LIHWAP, the first-ever federal water assistance program, was funded through the Consolidated Appropriations Act, 2021 andAmerican Rescue Plan Act. LIHWAP was authorized as a temporary emergency program to help prevent disconnections, pay arrearages, and reduce rates charged for drinking water and wastewater services for households with low incomes. Many LIHWAP programs across the country have already closed due to exhausting available funding, and any grant recipients with remaining funds will close their programs by March 31, 2024.
The report released highlights the differences in water affordability across the country, including differences between urban, rural and tribal utilities. The findings show, on average, 20% of households are in debt to their water utility -- and for tribal communities that increases to 32% of households.
The report indicates the average household debt per utility is $285, but among tribally owned utilities, the average household debt is $502. And while nearly 90% of all participating utilities charge late fees and disconnection or reconnection fees to help the utility offset the cost of this debt, the increasing costs of maintaining and providing water and wastewater services has led to financial challenges for many utilities.
Fiscal Year 2025 Budget provides $4.1 billion for the Low Income Home Energy Assistance Program (LIHEAP), helping families access home energy and weatherization assistance, and proposes to allow States the option to use a portion of those funds to provide water bill assistance to low-income households.
In addition to the resources listed above, LIHWAP quarterly updates and information on key performance indicators can be found on the LIHWAP Data Dashboard .