Michigan stands at a critical turning point. The water systems that underpin public health, economic vitality and daily life are aging faster than they are being repaired. Without solutions, more Michigan households will be pushed to the brink.

That is why the Legislature’s consideration of the proposed water affordability program with a dedicated funding source is timely and necessary. The legislation recognizes a fundamental truth: every community in Michigan faces rising investment needs, and many lack the resources to manage those costs alone. A statewide, funded water affordability program offers a smart solution  that protects residents, stabilizes utilities, and strengthens Michigan’s economy.

Headshots of Mami Hara and Gary Brown.
Mami Hara is the CEO of the US Water Alliance and member of the Value of Water Campaign. Gary Brown is CEO of the Detroit Water and Sewerage Department. (Courtesy photos)

The scale of Michigan’s water challenge is significant. A recent study by the Value of Water Campaign finds that Michigan needs approximately $85 billion over the next 20 years, or about $4.2 billion annually, just to bring its drinking water and wastewater systems into good working condition. That figure does not include ongoing operations and maintenance costs, nor does it fully capture the investments needed for stormwater infrastructure, PFAS treatment or lead service line replacement—areas where federal data, especially in rural communities, often undercount true needs. When those factors are included, the investment gap grows even wider.

Water affordability challenges are often framed as an urban issue, but the data tells a different story. Rural communities face some of the highest per-capita infrastructure needs in the nation — nearly double those of urban areas. In Michigan, the disparity is stark. Over a 20-year period, rural areas require roughly $1,200 per person per year in water infrastructure investment, compared to about $530 per person per year in urban areas. These communities not only face higher costs per resident, they often lack the capacity and revenue base to design and sustain local water affordability programs.

The economic stakes extend far beyond household water bills. A single day without water service would cost Michigan’s real estate sector an estimated $184 million, health care $144 million, and hospitality and food services $84.7 million. Reliable water service is not optional — it is foundational to economic stability and growth.

The proposed Michigan water affordability program and funding source would take meaningful steps to address these risks. The legislation would establish a statewide Water Residential Affordability Program that limits water bills to no more than 3% of household income for families earning up to 200% of the federal poverty level. It would strengthen protections against water shutoffs, improve tenant access to billing information and create an office to ensure consistent implementation statewide. Through a relatively modest investment, the program would provide predictable support for residents most at risk of losing access to safe water.

The benefits extend well beyond households and would provide utilities to structure rates to invest in infrastructure and reduce the risk of emergency repairs.

Those investments pay off. Every $1 million invested in water infrastructure generates approximately $2.5 million in economic output and supports 10 jobs. Strong water policy protects public health, attracts businesses and helps communities grow. 

Still, the challenges facing Michigan’s water systems cannot be solved by state action alone. Historically, the federal government covered 50% to 60% of water infrastructure investment costs. Today, federal dollars account for just 7%. As federal investment has declined, the burden has shifted almost entirely onto local utilities and ratepayers. Communities now fund roughly 99% of water operating costs, totaling nearly $119 billion annually nationwide. Without renewed federal commitment, rate increases will continue to fall hardest on those least able to afford them.

This initiative will not solve every water challenge Michigan faces, but it can serve as the cornerstone of a broader statewide strategy—one that aligns necessary infrastructure investment with the realities of household affordability. It is a practical, forward-looking response to a problem that affects every corner of the state.

Years from now, as infrastructure needs grow more urgent and investment decisions become more difficult, Michigan will be better positioned because it chose foresight over delay. 

Passing this legislation now will help safeguard public health, protect the economy, and ensure that safe, reliable water remains within reach for every family—no matter where they live.

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