LANSING — Michigan lawmakers are proposing a bipartisan bill package to expand water affordability across the state, a policy supporters say would help low-income households get by.
“This bill package isn’t just about addressing water affordability — it’s about doing so in a way that makes fiscal sense,” said Sen. John Damoose, (R) District 37, Harbor Springs.
Residents within 135% of the federal poverty income level would have their water rates capped at 2% of average household income in the area.
Those within 200% would have their payments capped at 3%, with hardship waivers available for those making slightly more.
“It not only caps bills, but also provides funding for plumbing repairs and arrearage forgiveness, addressing the underlying issues that drive costs higher for struggling households,” said Kerry Baughman, executive director of the Northwest Michigan Community Action Agency.
A study from the nonpartisan group Public Sector Consultants found that more than 15,000 households in the northwestern Lower and eastern Upper Peninsulas would be eligible for some form of assistance.
“This legislation is a game changer for community action in the communities we serve,” Baughman said. “Helping seniors and young families rise out of poverty starts with the basics — a safe home, food on the table, and affordable utilities.”
On average, households would qualify for between $30 and $40 of monthly assistance, less than half of a standard water bill in those areas.
The assistance would come from a $1.25 monthly surcharge for higher earners, which would increase to $2 in the coming years.
“The surcharge collected in Northern Michigan will stay in Northern Michigan, helping our friends and neighbors afford water,” Baughman said.
Supporters of the proposal say that the fee would make a big difference for struggling families.
“We get tired of being nickel and dimed all the time with one fee after another, but let me be clear — this small investment will generate funds that directly benefit communities and families across our state and the utilities that provide them with clean water,” Damoose said.
The bill package has just been introduced, but lawmakers say they’re optimistic it could receive broad support.
