State: Flint is ignoring tens of millions of dollars for water pipeline replacement

July 2018

Flint appears to be ignoring tens of millions of dollars in federal and state grant funds available to it for lead service line replacement, Michigan officials told the city's chief financial officer in a letter sent Wednesday.

The letter from the Michigan Department of Environmental Quality maintains that Flint has drawn only $27.2 million of the $167 million in state and federal funds that have been available to Flint since early 2017. Flint's use of 17 percent of available money comes, state officials said, as city officials are telling contractors they do not have enough money to pay them for more than a partial contract.

“Recently the state was notified that the city is issuing partial contracts to SLR (service line replacement) contractors under the premise that the state is withholding funds from the city. This not accurate,” DEQ Administration Deputy Director Amy Epkey wrote in the letter.

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