A lack of action in the Michigan House of Representatives has thrown the future of Detroit's widely used water affordability program into question.
The legislation would have provided long-term funding for the Lifeline Plan, which reduces eligible Detroiters' water bill to as low as $18 a month and wipes away debt from overdue bills. Earlier this month, Detroit Water and Sewerage Department Director Gary Brown told the Free Press that if water affordability legislation does not pass, the department would "be forced to realign the program to fit the dollars that are available."
The lack of an ongoing funding source prompted the department last week to stop taking new applications, DWSD Public Affairs Director Bryan Peckinpaugh said on Friday. The program has about $11.2 million and it's unclear how many households that funding will cover until the Wayne Metropolitan Community Action Agency -- which is administering the program -- verifies income eligibility for currently enrolled customers. Those who reach out to the agency are being referred to a payment plan meant to help customers with overdue balances.
"We don't want to set false expectations of enrollment when someone calls to apply and there may not be sufficient funding at this time to enroll them," Peckinpaugh said in an email.
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More than 25,000 households were enrolled in the Lifeline Plan as of the fall. The program, which launched in 2022, offers residents fixed monthly rates from $18 to $56 and removes past water debt based on a household's income and water use. A decade ago, Detroit drew international attention for its shut-off practices, spurring the United Nations to declare that cutting off water for those with a "genuine inability to pay" is a human rights violation.
"We're still going to move forward with finding sustained funding, but we do have to align the program to the available funding right now and we won't be able to serve all 26,000 households," Peckinpaugh said.
The Wayne Metropolitan agency is recertifying applications, or verifying income eligibility, as part of a state funding requirement announced this year. As of Dec. 18, there are 13,834 households enrolled in the Lifeline Plan and another 10,419 households with pending recertification applications, according to an online dashboard.
Brown has previously said households would not be shut off, but rather rolled into the EasyPay Plan, which allows any customer to pay a past-due balance across 36 months and be spared from having water disconnected.
In a statement Friday, he said the legislation "reflected the voices of water providers, advocates, public health officials, community action agencies, Democrats and Republicans."
The legislation sought to create a statewide residential water affordability program to reduce overdue balances and cap water bills to 3% of a household's income and establish a fund to pay for it, starting with a $2 fee per month on retail water meters or flat rate accounts.
Earlier this year, city and county leaders from across the region touted the proposed bills, introduced last fall in the Michigan House and Senate, as a way to ensure access to a basic right. But leaders from Macomb County at the time opposed the legislation, saying it would tack on additional fees and duplicate an existing assistance program.
Brown said the legislation was crucial for Michiganders across the state.
"It is good public policy to ensure low-income households can afford their water bill and the water providers have reliable revenues to meet operational and maintenance costs," he said. "These needs will only increase going forward due to rising costs to operate water and sewerage systems, replace lead service lines and to build climate resiliency. We had bipartisan support for this legislation and we were extremely close to passing these bills."
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Current funding comes from the Great Lakes Water Authority (GLWA), Michigan Water Affordability Grant and Local Water Utility Affordability Grant.
"We don't know yet what the future holds," Peckinpaugh said. "It depends on funding and how the Lifeline program transitions."
Contact Nushrat Rahman: [email protected]. Follow her on X: @NushratR.