EPA Report Highlights Water Affordability Challenges in the U.S.

EPA Report Highlights Water Affordability Challenges in the U.S.

December 17, 2024

WASHINGTON - Today, December 17, the U.S. Environmental Protection Agency released a report to Congress detailing water affordability across the U.S. among households and utilities.

The report - "Water Affordability Needs Assessment" - summarizes decades of research by utilities, academics, and associations, and includes recommendations, such as potentially establishing a federal water assistance program; increasing education, outreach, and knowledge around solutions to address affordability; and increasing ways to reduce water infrastructure capital and operating costs.

EPA estimates that between 12.1 million and 19.2 million households throughout the U.S. lack access to affordable water services. Nationally, the cost of unaffordable water service bills ranges from $5.1 billion to $8.8 billion.

"Accessing clean and safe water is part of everyday life, and it should be affordable for everyone across the country," said EPA Principal Deputy Assistant Administrator for Water Bruno Pigott. "The Biden Administration and Congress recognized communities need assistance, and that's why the Bipartisan Infrastructure Law includes $50 billion for water and wastewater projects, almost half of which is to be provided in grants."

Large-scale, sustainable change requires addressing how water utilities are funded, how rates are set, and how assistance programs are established to support all rate payers, the report states. It also requires continued investment in the nation's aging infrastructure. A national water assistance program could serve as a critical tool for alleviating some of the financial stress faced by households and utilities around the country.

"Water affordability is not just a public health necessity, it is a moral imperative. Many families in Maryland and across the nation already struggle with high rates, even as the cost to maintain our aging water infrastructure increases," Sen. Ben Cardin (D-MD) said. "This report is a long-awaited first step towards standing up an assistance program at EPA for low-income consumers that allows for utilities to make repairs and upgrades without overburdening their ratepayers."

"Access to clean water is not a luxury-it's a fundamental human right," Rep. Blunt Rochester (D-DE), a member of the House Energy and Commerce Committee, said. "The inclusion of the Low-Income Water Customer Assistance Act in the Bipartisan Infrastructure Law, a bill I championed with Senator Ben Cardin, marked a significant step toward ensuring equitable access to safe drinking water for all. Today's report further advances this effort and highlights the nationwide need for assistance to low-income water customers. It's another critical stride in our commitment to making clean, safe drinking water accessible to every community."

"We know people are struggling to afford critical water and wastewater services, and they need support now. This report makes it clear: the time has come for a permanent federal water affordability program. I want to thank the EPA for bringing national attention to this urgent issue. Water agencies across the country are ready to act to ensure every household has access to the services they depend on," President of Water Agency Leaders Alliance (WALA) and Chief Executive Officer of Louisville and Jefferson County Metropolitan Sewer District Tony Parrott said.

Many low-income households struggle to pay their water bills, leading to economic stress and the potential to lose access to water services or even their homes in certain instances. When households are unable to pay their water bills, service disconnections can have impacts that include public health concerns, economic instability, social inequality, and psychological and psychosocial stress. Water utilities, meanwhile, are working to meet rising costs for operations and maintenance, upgrading aging infrastructure, and protecting human health and the environment, while facing difficult decisions about raising rates - often with the possible consequence of taking on substantial financial risk.

Learn more about water affordability.