Detroit water chief says Lifeline H2O program will run out of money within weeks

Detroit Water and Sewer Department Director Gary Brown told the City Council’s Budget Finance and Audit Standing Committee on March 4 that the local Lifeline H2O affordability program faces an immediate funding shortfall and could exhaust its available enrollment slots within weeks.

Brown said Lifeline originally helped about 28,000–30,000 households when it was funded with ARPA and other state sources. “We had 28,000 households in the program, and we paid off their arrears and gave them a fresh start,” he said. He added that Lifeline is built on three components—arrears relief, an income‑based affordable bill, and plumbing repairs to fix leaks—and that the department defines affordability as 1.8% of household income.

Today, Brown said, the program has $3,500,000 in outside funding (including a GLWA contribution) and can serve roughly 4,500 customers; DWSD currently has about 3,200 active Lifeline enrollees and expects to fill the remaining slots soon. “We’re gonna fill up the list of 4,500 very quickly, and we’ll be out of money,” Brown warned. He said DWSD is continuing to lobby Lansing and Washington for supplemental funds but emphasized that rate revenue cannot be used to subsidize customers: “You cannot use a rate dollar to subsidize another customer’s bill.”

Brown also described EasyPay, a complementary program that protects customers from shutoff without an income test: customers can sign up via kiosks with a $10 deposit. He said EasyPay enrollment stands at about 47,685 households; combined, EasyPay and Lifeline currently reach about 50,000 households—roughly 150,000 residents of Detroit.

Council members pressed DWSD staff on how to apply. Sonali Patel, DWSD public affairs director, said residents can apply online at lifeline.detroitmi.gov or call (313) 435‑2055; she said online applications typically see a roughly 12‑hour turnaround and enrollment within 24 hours.

Council members also raised questions about eligibility priorities, winter shutoff protections, and whether the Great Lakes Water Authority (GLWA) and pending Lansing legislation can supply sustainable funding. Brown said GLWA contributes through a lease‑mandated wrap fund (Detroit advocates a 1% share versus 0.5% for other jurisdictions) and that two sets of bills in Lansing are under consideration to create a pooled per‑meter funding stream; an early proposal of $2 per meter was negotiated down to $1.25 in later discussions, Brown said.

Brown asked the committee for help advocating for bipartisan state support but cautioned that some legislative drafts contain a “no‑shut” clause that utilities will not accept; he said language will need amending for utilities to support a statewide funding mechanism. He also said DWSD is prepared to provide the council with detailed budget and funding‑source information ahead of the March budget hearing (DWSD’s budget presentation was scheduled for March 13 at 3 p.m.).

Brown urged attention to plumbing and lead‑service‑line work as a third component of affordability: “You gotta go in and fix the plumbing issues within their homes…because if they have leaks, they’re gonna have $200 and $300 bills,” he said, explaining that repairs reduce chronic overuse and make affordability programs effective.

Next steps: DWSD will provide the council with data on the program’s funding, historical rate increases, and projected federal/state funding levels during the budget process. Brown and staff also said they will continue outreach and recertification efforts and advocated council assistance in securing state legislative support for outside funding.