Fighting for Reliable, Affordable Water in Every Tap 

Why We Need the Affordable Water Now Legislative Package

(H.B. 4555, 5170-5173)

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The need for affordable water is undeniable in Michigan, where water bills have surged by an average of 40% since 2010 and up to 320% in some cities. The Affordable Water Now Act proposes a crucial solution that could lower water costs while increasing water utility efficiency and total collections. 

Americans and Michiganders are tired and unable to keep up with rising costs. Michigan is surrounded by freshwater, and there is no reason we should pay more than most Americans for this basic need. The Affordable Water Now Bill offers a solution for families overburdened by escalating costs–a pathway to fair, affordable water rates. 

Key Components: Giving Michigan Families a Break

• Income-Based Water Billing: This approach adjusts water bills using a sliding scale relative to federal poverty level (FPL) and household income, ensuring water costs are manageable and everyone pays their fair share. 

• Debt Forgiveness: Offers debt forgiveness for customers who keep up with their adjusted bills, alleviating financial stress on households and preventing costly water shutoffs.

• Water Shutoff Protections: Protects enrolled customers from water shutoffs and households with minors, pregnant individuals, seniors, or those with medical needs. Limited renter protections included.

• Data Transparency: Requires drinking water, sewerage, and stormwater providers to file detailed annual reports and maintain public websites to ensure transparency, accountability, and equitable access to services. 

What is Driving Skyrocketing Water Rates? 

Rising water rates are driven by reduced federal investment, escalating maintenance costs, aging infrastructure, a changing climate, and a declining ratepayer base. Rather than address these issues with sustainable and responsible solutions, rising costs are pushed to households, making basic water services unaffordable.
Shutting off water to households unable to keep up with rising rates actually costs millions of dollars a year. Instead of wasting that money, we could increase collections and reduce wasteful spending through tiered water rates based on income. 

Demonstrated Success - Philadelphia’s Tier Assistance Program (TAP) 

Philadelphia’s TAP has significantly improved water bill collection rates, which ensures that water utilities operate more effectively. After implementation, billing collection rates under TAP for low-income households have remained robust at approximately 72%, a substantial increase over pre-TAP figures. Over a two-year period, these rates have occasionally climbed to as high as 95.7%, showing a consistent improvement in payment compliance. The success of this program shows that billing for water at a fair rate can actually lead to more payments. 

What are The Benefits of Affordable Water? 

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• Attracting and Retaining People by Making Michigan More Affordable: By reducing the water bill burden, the bill would foster greater financial independence and stability for families.

• Building Safer, Stronger Communities: Consistent and affordable water access ensures public health and community strength. Students miss fewer days of class, workers miss fewer days of work, and families thrive when basic needs are met consistently. 

• Enhancing Michigan’s Economic and Environmental Resilience: The bill would support job growth through investments in water infrastructure and complement efforts towards sustainable energy and efficient resource use.

• The Affordable Water Now Bill is not just a legislative measure; it is a commitment to Michigan’s future strength and prosperity. 

• Voters are demanding policies that lower costs and pave the path to greater financial stability and prosperity. 

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How does the sliding income scale work? 

Those receiving federal or state assistance or earning up to 200% of the FPL qualify for the water affordability program. Water rates are capped as follows:

• ≤135% FPL – 2% of monthly income

• 135%-150% FPL – 2.5% of monthly income

• 150%-200% FPL – 3% of monthly income

What water services are capped according to the sliding income scale?

Under the Affordable Water Now Act, drinking water, sewer, and stormwater will be capped according to the income sliding scale.

Does this include tenant protections? 

Yes. Tenants in multi-dwellings without submeters are protected from water shutoffs if the landlord fails to pay the bill. Those in sub-metered units can enroll in the water affordability program if they meet the 200% FPL requirement, and landlords must reduce rent by the tenant’s water payment.

How does the water debt forgiveness part of the program work? 

Qualified customers receive full debt forgiveness if arrears are $1,500 or less at enrollment. If over $1,500, forgiveness is granted in stages:

• $1,500 at enrollment

• Another $1,500 after 12 months of participation and consecutive payments

• Remaining balance after 24 months of participation and consecutive payments

Who is included in the ban on water shutoffs? 

The ban on water shutoffs includes:

• Qualified Customers – Those with a household income at or below 200% of the federal poverty level.

• Tenants in Multifamily Dwellings – If the landlord is responsible for the water bill, the utility cannot shut off service for nonpayment.

• All Customers During a State of Emergency – Water systems must halt shutoffs and restore service until the emergency ends.

• Protected customers - households with seniors, customers with medical needs, pregnant people, and kids under the age of 18

The Senate Package has a funding mechanism and the Affordable Water Now Package does not. Why not and wouldn’t it be better to have a funding mechanism like the Senate version?

The Affordable Water Now package does not include a built-in funding mechanism because it is designed to give water utilities the flexibility to decide how best to generate the revenue needed to support their most vulnerable customers. Utilities have long set water rates to meet revenue needs, and research shows they could fund a low-income affordability program locally with only a one-time 5–10% increase on the remainder rate base. If state or federal dollars are added, that increase could be even lower.

By contrast, the Senate package relies on a flat monthly fee of $1.25, which increases to $2 over three years and is capped at $3 per meter. However, independent analysis shows that capping household bills at 2–3% of income would actually require around $6.52 per month to sustain the program. Once the funding has been depleted the benefits like debt forgiveness, shutoff protections, and discounted bills will be cut off leaving the most vulnerable population quickly wondering how to pay for water, groceries and other basic necessities.  In addition, many eligible families may never be able to access this program due to a shortage of funding. 

In short, a fixed fee that doesn’t meet the need risks failing the very families it aims to help. The Affordable Water Now approach avoids this trap by providing flexibility, equity, and sustainability without locking the state into a fee structure that underdelivers.