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DWSD says Lifeline affordability program faces funding shortfall; enrollment falls from 27,000 to about 10,000

2772837 · March 21, 2025
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Summary

DWSD officials told council the Lifeline affordability program — which capped customer bills at 1.8% of household income — no longer has funding to cover prior enrollment levels: DWSD contributes about $2.4 million under a Cox order and the state adds about $8 million, supporting roughly 10,000 households compared with 27,000 at peak; councilors

Detroit Water and Sewage Department officials told City Council on Monday that the department’s Lifeline affordability program has far fewer participants than it did in earlier years because available funding has dwindled.

Director Gary Brown said the Lifeline program previously enrolled about 27,000 customers and capped participant bills at 1.8% of household income. He said DWSD’s contribution to Lifeline is roughly 1% of the department’s annual budget (about $2.4 million under the cited ‘‘Cox order’’) and that the State of Michigan contributes about $8 million. Brown said those combined funds currently support roughly 10,000 residents; the department sent approximately 6,000 customers letters indicating funding is not available to continue support for all prior enrollees.

Brown and council members described DWSD’s year‑and‑a‑half lobbying effort in Lansing and Washington for a statewide or federal funding mechanism. Brown said the department proposed a meter surcharge (initially $2 per meter) to create a statewide pool of funds but was unable to secure a vote on the legislation in Lansing. Brown said DWSD will continue advocacy in Washington during Water Week and seek regional partners to pursue federal support for utility affordability programs.

Council members said the shortfall creates immediate hardship concern in neighborhoods and urged continued state and federal outreach. Council voted without objection to add a resolution encouraging DWSD to pursue regional or national solutions and to participate in discussions about a national low‑income water assistance mechanism.

Ending: DWSD said it will continue advocacy and bring updates on federal and state outreach efforts; council members asked DWSD to include estimates of unmet need and program costs in follow‑up materials.