California Finance Local News

$880 Million Allocated to Clear Water Utility Debt for 1.3 Million Households in California; People Rejoiced

$880 Million Allocated to Clear Water Utility Debt for 1.3 Million Households in California; People Rejoiced

In a recent announcement, California Gov. Gavin Newsom shared that the state has taken the initiative to cover the water and wastewater utility bills for a significant number of Californians, reaching a total of 4 million individuals.

Over $880 million was allocated from the state’s Water and Wastewater Arrearages Payment Program to eliminate the outstanding debt of more than 1.3 million households and businesses, benefiting a total of 4 million individuals.

A news release stated that the arrearages program was initiated in 2021 with the approval of Gov. Newsom and the California Legislature. The program received almost $1 billion in federal funding from the Biden-Harris Administration’s American Rescue Plan. Its purpose is to alleviate the burden of water and wastewater debt for households and businesses affected by the pandemic.

Los Angeles was allocated a significant portion of the funds to assist the Los Angeles Department of Water and Power (LADWP) and Los Angeles City Sanitation (LASAN) in addressing the water and wastewater bills of over 204,000 customers as reported by KTLA.

In April 2020, the governor issued an executive order that prevented water suppliers from disconnecting service to California households and businesses due to unpaid bills.

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