LANSING, Mich. — The Michigan Infrastructure & Transportation Association (MITA) expressed strong support for Senate Bills 950 and 951, introduced by Sen. Sam Singh (D-East Lansing), which would establish the Michigan Water Trust Fund, a dedicated, self-sustaining funding mechanism to address the state’s pressing water and underground infrastructure needs.
SB 950 would establish the Michigan Water Trust Fund within the state treasury and create a grant program to distribute resources to communities, while SB 951 would generate revenue for the fund by requiring bottled water companies to obtain licenses and pay a 25-cent-per-gallon royalty on water withdrawn from Michigan sources. Estimates indicate the royalty structure could generate approximately $300 million annually for water infrastructure investment.
Grant funding under the program would be directed toward a wide range of critical water infrastructure needs, including lead service line replacement, drinking water access for low-income residents, private well testing, stormwater and flood resilience projects, emergency bottled water assistance, and on-site wastewater systems. A seven-member Water Trust Fund Board, appointed with the advice and consent of the Senate, would oversee grant recommendations to ensure accountability and transparency.
“Michigan sits atop one of the world’s greatest concentrations of fresh water, yet too many of our communities are still struggling with aging pipes, lead contamination, and inadequate water systems,” said Rob Coppersmith, Executive Vice President of MITA. “While Michigan may have access to some of the world’s greatest freshwater reserves, those resources mean little if the systems delivering water to our homes, schools, and businesses are failing. Sen. Singh’s legislation takes a smart, sustainable approach, asking the companies that profit from Michigan’s water to help fund the infrastructure that makes that water worth protecting. We strongly encourage the Legislature to advance these bills.”
Michigan’s water and underground infrastructure face a significant and growing investment gap. Decades of deferred maintenance have left water mains, sewer systems, and drinking water treatment facilities in need of urgent repair and replacement. The Water Trust Fund would provide communities, particularly smaller and lower-income municipalities, with a reliable funding source outside of the annual appropriations process.
“MITA members are the ones called when a water main ruptures at two in the morning,” Coppersmith added. “They understand better than anyone what years of deferred maintenance ultimately cost, in emergency repairs, public health impacts, and lost confidence in basic services. The Water Trust Fund creates a sustainable funding source to help Michigan get ahead of these failures rather than perpetually respond to them. That means cleaner water, safer communities, good-paying construction jobs, and infrastructure built to last.”
The bills are designed as a linked package: SB 950 does not take effect unless SB 951 is also enacted, ensuring the fund’s revenue mechanism and grant program are established together. The fund is structured to grow responsibly, with spending capped at 70% of annual revenues until the accumulated principal reaches $800 million, after which the principal must be maintained between $750 million and $1.5 billion.