The bill provides a one-year, $500 million boost to help low-income households and state/tribal systems avoid water shutoffs and health harms, but it increases federal spending and offers only temporary funding certainty.
Low-income households receive up to $500 million in FY2027 LIHWAP grants to help pay water and wastewater bills.
State and Tribal governments receive federal funding to prevent water service shutoffs and maintain community water access.
Households under water-affordability stress—particularly in rural and low-income communities—are less likely to lose service, reducing health and safety risks tied to loss of water access.
Taxpayers bear the $500 million FY2027 appropriation, increasing federal spending that could add to deficits or crowd out other priorities.
The funding is a one-year, temporary appropriation, creating uncertainty and potential reliance for recipients and state/tribal programs without guaranteed long-term support.
Based on analysis of 2 sections of legislative text.
Appropriates $500 million for FY2027 to HHS to fund LIHWAP grants to States and Indian Tribes to help low-income households pay water and wastewater bills.
Official title: To appropriate $500,000,000 to the low-income household water assistance program under section 2912 of the American Rescue Plan Act of 2021, and for other purposes.
Introduced June 15, 2026 by Debbie Dingell · Last progress June 15, 2026
Appropriates $500 million for fiscal year 2027 to the Department of Health and Human Services to fund the Low-Income Household Water Assistance Program (LIHWAP), supporting grants to States and Indian Tribes to help eligible low-income households pay water and wastewater bills. The bill contains a short title provision and a single substantive funding provision that mirrors the FY2021 LIHWAP appropriation level.