Subcommittee hears push for $60 million statewide water-assistance program

At a meeting of the House Appropriations Subcommittee on Human Services, witnesses urged lawmakers to create a permanent statewide water-assistance program and requested $60 million in the fiscal 2026 health and human services budget to help low-income households pay water bills and to stabilize utilities.

Public Sector Consultants researcher Maddie Palone, who presented statewide data, said there is no federal counterpart for water-assistance programs and described statewide need based on a new rate-and-income analysis. "There is no permanent program at the federal level that supports water assistance, unlike energy, telecom," Palone told the committee. Her team collected rate data from 500 of roughly 1,200 utilities, covering about 85% of Michigan's population, and estimated that roughly 371,000 households would qualify for a program that limits household water costs to about 3% of income. Palone said those households have an average annual gap of about $435 (roughly $36 per month) between current bills and a 3%-of-income affordability benchmark.

Sarah Rubino, representing the Michigan section of the American Water Works Association, said local water systems rely on customer rates and bear the financial effects when low-income…