Governor’s Budget Proposes $1 Billion for Water System Arrearages Relief
During the COVID-19 emergency, many Californians experienced job loss, reduced wages, and other hardships that made it difficult for them to pay their water bills. As the state prepares to fully reopen in the coming weeks, certain provisions of Governor Newsom’s COVID-19 related executive orders remain necessary to help Californians recover. On June 11, 2021, the governor issued Executive Order N-08-21, which extends the prohibition on discontinuing water service for residential customers and small businesses in a critical infrastructure sector until September 30, 2021.
Water systems played—and still play—a vital role in protecting health and safety by halting water shutoffs for residential customers. Governor Newsom’s 2021–22 May Revise to the state budget proposes that $1 billion in American Rescue Plan Act funds be used to provide direct payments to water systems to address customer arrearages and revenue gaps related to the pandemic. Details of this program are still being worked out through the legislative budget process. The State Water Board will share additional details as they become available.