National Low Income Water Customer Assistance Program Assessment

Water affordability challenges are growing nationwide

Substantial investment is needed to upgrade aging water infrastructure, meet evolving regulations, and address climate and cybersecurity risks. These pressures have driven rate increases that outpace inflation and income growth, making water affordability an acute challenge for many low-income households.

Local utilities face structural barriers to addressing affordability. Most lack access to customer income data, administrative capacity, and ties to social service networks. Fragmented governance and regulatory diversity further complicate program delivery. While the water sector has long advocated for a federal assistance program akin to the Low Income Home Energy Assistance Program (LIHEAP), designing such a program requires navigating complex tradeoffs.

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Balancing tradeoffs to design an effective national Low Income Water Customer Assistance Program

One Water Econ collaborated with affordability experts and water sector organizations to assess national water affordability challenges and evaluate administrative pathways for a permanent federal low-income assistance program. The study estimated that 7.5 to 21.3 million households face water burdens—and explored how to deliver sustained relief efficiently and equitably.

Through qualitative analysis of five program models, including options that build on existing federal programs (e.g., SNAP and LIHEAP) and new standalone designs, the team evaluated tradeoffs in reach, administrative cost, and customer burden. Findings highlight the complexity of delivering assistance in a diverse water sector and underscore the need for coordinated federal, state, and local action. The study provides a practical framework to guide future policy design and investment in water affordability.