Residents across the Golden State are seeing a wave of relief this week as California rolls out a massive payout in utility debt forgiveness. A total of $880 million has been poured into clearing the water and wastewater bills of nearly 4 million Californians, the state reported. In a sweeping move that benefits 1.3 million households and businesses alike, the debt forgiveness stems from the crippling economic turmoil brought on by the pandemic, as reported by the Office of the Governor.
SACRAMENTO — Following an influx of federal funds, California's leadership took decisive action, and as a result, praise and relief echo across its vast geography – the cities and valleys resounding a sigh that emanates from lifted financial burdens; the program has doled out significant financial supplanting ever since it first began in 2021 – after Governor Gavin Newsom and the California Legislature tapped into nearly $1 billion from the American Rescue Plan. Newsom set the tone in April 2020 by enacting an executive order preventing the discontinuation of water services for nonpayment during the pandemic, a lifeline for many struggling Californians.
Notably, the City of Los Angeles claimed a substantial percentage of the allotted funds, getting nearly 30% of the whole, a boon to both the Los Angeles Department of Water and Power (LADWP) and Los Angeles City Sanitation (LASAN). According to the Governor's Office, this financial assistance enabled the clearance of dues for over 204,000 customers. Thanks to the participation of 944 community water systems, nearly the entire population of California, representing 96%, is under the wing of this program.
The news comes as a hallmark of California's response to the economic effects of the pandemic – a response that underscores the state's broader strategy of delivering direct relief through tax refunds, utility and rent relief, small business grants, and tax credits. CalEPA Secretary Yana Garcia, State Water Board Chair E. Joaquin Esquivel, and Los Angeles Mayor Karen Bass were among the officials who gathered this week to celebrate the tangible impact of these efforts on Californians' lives.
