The Seattle City Council unanimously approved legislation Tuesday that expands the city’s Utility Discount Program, making an estimated 31,000 additional low-income households eligible for reduced utility bills beginning in 2027.
Council Bill 121222, sponsored by District 6 Councilmember Dan Strauss and co-sponsored by Council President Joy Hollingsworth, changes the program’s income eligibility from state median income to 60% of the area median income.
According to the City Council, households earning less than 60% of the area median income will be eligible beginning Jan. 1, 2027, for a 60% discount on Seattle City Light bills and a 50% discount on Seattle Public Utilities bills.
“This is about making life more affordable for working families, fast,” Strauss wrote in a newsletter to constituents. “Right now, a barista making just above the minimum wage is paying the same home utility rates as a millionaire hedge fund manager. This legislation will put money back into the pockets of working people who are struggling to get by and need help.”
City officials estimate the expanded eligibility could save qualifying households more than $1,000 per year, depending on utility usage.
The council said the current program’s eligibility is based on state median income, which is lower than the area median income standard used by other city affordability programs. The change is expected to extend eligibility to approximately 31,000 additional households, including an estimated 8,800 senior households.
According to the legislation, the expanded discounts will be funded through a small increase in utility rates, averaging about 50 cents per month for Seattle City Light customers and 27 cents per month for Seattle Public Utilities customers.
The legislation also requests annual reports on efforts to increase participation in the Utility Discount Program beginning next year through 2031.
In addition, the bill directs the city to begin work on expanding some level of utility discount to households earning up to 70% of the area median income by 2028 and up to 80% by 2029.
The legislation takes effect Jan. 1, 2027.
The vote comes just after Strauss proposed amendments to the Seattle Transit Measure that would prioritize faster bus connections between Ballard, downtown Seattle, and Link light rail stations, while requiring a larger share of the measure’s funding to be spent directly on transit service. The City Council is expected to vote on those amendments and the final transit funding package later this week.
Photo: Dan Strauss