HHS Releases Large Scale Water Utility Affordability Survey Report as Part of the First-Ever Federal Water Assistance Program

Today, the U.S. Department of Health and Human Services (HHS), through the Administration of Children and Families (ACF), released the Understanding Water Affordability Across Contexts, LIHWAP Water Utility Affordability Survey Report. This report provides an analysis of the largest survey documenting rates, arrears, disconnections and fees in one dataset in the country. 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 and President Biden’s American 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.

“LIHWAP has met a critical need for households since its inception,” said HHS Secretary Xavier Becerra. “The program has served as a lifeline for families to ensure one of the most basic needs – water – is available. The survey we’re releasing today demonstrates just how important water assistance is to individuals, children, families and communities that HHS serves.”

The report released today 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.

So far, LIHWAP has served more than 1.4 million households. “That’s 1.4 million individuals and families who may have lost access to water and wastewater services without this program,” said Principal Deputy Assistant Secretary for the Administration for Children and Families, performing the delegable duties of the Assistant Secretary for Children and Families, Jeff Hild. “While we take pride in the support LIHWAP provided to so many families, today’s report shows there are many households still in need of water assistance.”

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.

“As this program comes to an end on March 31, 2024, we are proud of the work that the LIHWAP network had done to make water and wastewater services more affordable for individuals and families and the support that we’ve provided to utilities to help them maintain water access for those most in need,” explained OCS Director Dr. Lanikque Howard. “As we examine this report, we know that there is a significant need for on-going investments in utility assistance for households across the country and we are committed to doing everything we can to support families and individuals with their unmet utility needs.”

President Biden’s 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.

For more information about other utility assistance and anti-poverty programs administered by the Office of Community Services, visit https://www.acf.hhs.gov/ocs