# Water Debt Relief Act of 2021

This bill creates a federal program to help households that have fallen behind on their water bills. The Environmental Protection Agency would distribute $4 billion to water companies across the country to forgive or reduce the unpaid water bills that customers accumulated starting in March 2020—essentially the period when the pandemic hit and many people struggled financially.

Here's how it would work in practice: If you owe your local water company money from unpaid bills dating back to March 2020 or later, your water company could use these federal funds to wipe away what you owe. If there isn't enough money to forgive everyone's entire debt, the water company would reduce everyone's bills by the same percentage so the relief is distributed fairly. The key protection is that for five years after receiving these funds, water companies cannot disconnect your service for nonpayment, report you to credit agencies, or pursue collection actions against you. This gives households breathing room to get back on their feet without the threat of losing access to water.

The bill specifically targets people who fell behind during the pandemic crisis, recognizing that many households faced sudden job loss or reduced income. States would handle distributing the money to their local water systems, and they can use up to 4 percent of the funds for administrative costs. This is designed as emergency relief rather than a permanent solution, but it would provide immediate help to millions of Americans struggling with water debt while protecting them from the usual consequences of unpaid bills.

Water Debt Relief Act of 2021

Dingell, Debbie

Water Debt Relief Act of 2021 This bill requires the Environmental Protection Agency (EPA) to implement a residential emergency relief program. Under the program, the EPA must reimburse public water systems for providing forgiveness of the debts and fees of customers who incurred new debts on or after March 1, 2020.