by Farrah Hasan
Water affordability is an urgent and growing challenge in the United States, disproportionately affecting low-income and rural communities. While national estimates indicate that 10 to 12% of households face unaffordable water bills, the burden is unevenly distributed across states and by utility size.
This study explores how communities in different policy environments approach water affordability needs within their own communities. This study is primarily interested in small and rural systems, which are understudied in the current literature, focusing on the availability and implementation of Customer Assistance Programs (CAPs) and the federal Low-Income Household Water Assistance Program (LIHWAP), as well as general financial assistance measures undertaken by the system or third parties.
Through an exploratory and cross-state analysis of 88 utilities throughout New Jersey, Louisiana, Washington, California, and Texas, this research highlights the many ways that utilities approach issues around water affordability within their own community. Findings show that smaller utilities often lack the administrative and financial capacity to implement CAPs and frequently rely on referring customers to community organizations or other third-party entities, but with little formalization or structured program support.
This study finds that LIHWAP implementation was similarly inconsistent, with awareness and participation varying widely by state. This study reveals a varied water affordability program response landscape in which the adequacy of support depends heavily on utility size, local governance, and local nonprofit capacity. These results underscore the need for coordinated multi-level policy reforms that prioritize affordability, equity, and accountability to ensure widespread, sustainable, and affordable access to water.