Water Affordability

Water affordability is a critical issue affecting millions of Americans who struggle to pay for essential water services. Between 12.1 million and 19.2 million U.S. households face water bills that consume a disproportionate share of their income, making access to clean and safe water a financial challenge. This burden is intensified by aging infrastructure, increased operational costs, and environmental pressures, which all contribute to rising water rates nationwide.

Why Water Bills Are Rising

Over the past five years, water bills have increased by 24%, surpassing inflation and forcing many households to allocate more of their limited budgets to water services. Utilities must invest in replacing aging pipes, complying with stricter water quality regulations, and managing the impacts of droughts and floods. These necessary improvements drive rate increases, as explained in Why Your Utility Bills Are Rising in 2025. Nationwide, more than $625 billion is needed to repair and upgrade drinking water and wastewater infrastructure in the coming decades.

Who Is Most Affected

Water affordability challenges disproportionately impact low-income households, rural communities, and communities of color. Many families at or below 75% of the federal poverty level spend a significant portion of their income on water bills. Black communities, in particular, face higher rates of water disconnections due to unaffordable bills and shutoff policies. Rural areas with aging infrastructure often lack the resources to absorb rising costs, resulting in water debt for about one in five U.S. households.

Federal Assistance Programs

The Low Income Household Water Assistance Program (LIHWAP) is the primary federal initiative designed to help households afford water services. Since its inception, LIHWAP has served millions of families, preventing disconnections and restoring service to those in need. The program focuses on the most vulnerable populations, including Black, Native American, and extremely low-income households. Additional federal efforts, such as EPA’s Water Technical Assistance and State Revolving Funds, support infrastructure investment to help stabilize water rates over time, though sustained funding remains essential to address ongoing affordability challenges.