
Recommendations for LIHWAP Reauthorization
Improving Implementation
The federal government may consider the following modifications to a water assistance program based on the first LIHWAP to increase enrollment and improve implementation:
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Allow applications through multiple pathways, without requiring in-person meetings, ensuring accessibility for all applicants.
Support modern enrollment options, including online applications, utility websites, and automated phone systems, to streamline participation.
Provide administrative funding to cover costs related to billing system updates, staffing needs, or other modifications necessary for program implementation—without increasing water rates.
Offer data-sharing tools and guidance to help utilities securely match eligible households while protecting sensitive customer and utility information.
Improve income verification processes by ensuring asset calculations are accurate and do not create unnecessary enrollment barriers.
Align income eligibility limits with existing state utility and housing assistance programs for households that do not qualify under categorical eligibility. Avoid applying an additional asset test beyond income requirements.
Ensure assistance is available to customers with lower arrears by setting a low minimum benefit level, recognizing that even small past-due amounts can put households at risk of disconnection.
Account for regional cost differences by allowing states flexibility to set income thresholds based on Area Median Income (AMI) where appropriate, rather than relying solely on Federal Poverty Level or State Median Income.
Reduce paperwork burdens by minimizing document requirements and ensuring remote access to applications for households with and without internet access.
Ensure renters can access assistance even when the landlord is the account holder, to the greatest extent possible.
Allow debt reduction and bill credits to cover all water utility services provided, ensuring comprehensive assistance.
Encourage state agency and utility collaboration to improve enrollment and data-sharing efforts. Agencies administering federal programs like SNAP, LIHEAP, and TANF can partner with utilities to identify and enroll eligible households.
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Support small water systems by allowing states to use a portion of their administrative funding to help these systems participate in data matching, automatic enrollment, and program reporting.
Make federal assistance available to jurisdictions that request additional support for program implementation.
Assess and expand technical assistance resources by evaluating whether existing organizations effectively reach eligible households. Where needed, states and the administering federal agency should identify additional organizations—including private sector partners—to provide technical support.
Provide technical assistance to help water systems and households navigate the program, which may include outreach and education on program eligibility and enrollment, efficient online forms/tools, and billing system modification guidance and support.
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Track state progress on enrollment and fund distribution by reviewing state plans, setting timelines and participation goals, and documenting barriers when states fall short.
Monitor program implementation to ensure utilities are effectively participating and that funding is being distributed efficiently.
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Allow states flexibility to implement effective communications plans that help utilities, community action agencies, and other service providers facilitate program participation.
Ensure adequate outreach resources so eligible households receive timely information and support with enrollment. Coordinate efforts with utilities, private companies, and other partners to reach households.
Provide guidance on localized outreach strategies that reflect the needs of different communities, ensuring messaging is relevant and effective.
Offer states a communications plan template or checklist informed by community stakeholders and outreach experts to streamline implementation.
Encourage targeted outreach for renters and households where the account holder may not be the resident paying the bill.
Encourage support for customers with incomplete applications by incorporating follow-up strategies into communications plans.
Provide additional resources for community action agencies and other partners to assist in outreach and customer education.
Clarify that drinking water, stormwater, and solid waste costs are eligible for assistance in municipalities that charge separately for these services.
Ensure utilities receive clear program information through dedicated communication channels, engagement with municipal and utility associations, and accessible program staff for troubleshooting.
Use of LIHWAP Funds
Disconnections and restoration of service: Utilities should restore service as soon as they are informed that a household will receive program benefits, even if the benefit does not fully cover arrears. Households should not face disconnection due to remaining arrears as long as they remain enrolled in the program, receive assistance annually, and make regular payments.
Direct grants to renters: States should have the flexibility to provide direct grants to assist renters and customers of non-participating water systems who would otherwise be unable to access benefits.
Plumbing measures, flushing costs, and repairs: Coordination with CSBG should support necessary plumbing repairs to restore service and reduce leaks or water waste.
Prioritization of funding: Ensure the majority of program funds are directed toward debt reduction and bill credits.
Tax liens: Allow program funds to be used to pay tax liens resulting from unpaid water/sewer bills, even if payment must be made to a local government entity rather than a utility. Households receiving benefits should not be subject to lien placement, sale, or enforcement due to remaining arrears.
Waivers, fees, charges, and interest: Utilities receiving program funds should waive charges associated with late payments or reconnections to stretch limited program dollars further. Fees and charges for nonpayment should only be reimbursed if tied to actual costs incurred by the utility rather than punitive measures.
Assistance Exemption From Taxation: Ensure that financial assistance provided under this program is not considered taxable income under the Internal Revenue Code.
Supplementing, not supplanting, existing local assistance programs: Utilities should have flexibility in how they allocate program funds relative to their existing local assistance efforts. Rather than replacing local funding, program dollars should be integrated in a way that sustains long-term affordability efforts while allowing utilities to address other critical needs.