Mayor and Alders Propose New Funding for Utility Rebate Program

For Immediate Release 
February 23, 2026 

As part of the City’s efforts to keep Madison affordable for working families, Mayor Satya Rhodes-Conway and several members of the Common Council are advancing legislation to reduce utility bills for low-income families in Madison. The proposal will fund and expand access to the Madison Customer Assistance Program (MadCAP) so this critical program can continue to save residents up to $30 each month on their Municipal Services Bill.  

“Working families are struggling to afford to live in Madison. One way we can help is to reduce the cost of household bills,” says Mayor Rhodes-Conway. "MadCAP eases the burden on folks who are struggling financially and helps keep them in their homes. All of Madison benefits when we keep our city accessible to folks with a wide range of incomes.” 

A first of its kind program in Wisconsin, MadCAP started in 2023 and provides a credit to households earning 50% or less of the Area Median Income (AMI) who receive a municipal bill. Funding for that credit was spread across all services on the bill, including water, sewer, stormwater, urban forestry, resource recovery, and landfill. However, the Public Service Commission of Wisconsin (PSC) recently ruled that it can no longer be funded through utility rates.  

In order to continue MadCAP, Mayor Rhodes-Conway and Alders Tag Evers, Yannette Figueroa Cole, MGR Govindarajan, Dina Nina Martinez-Rutherford, and Sean O’Brien have introduced a resolution to shift the funding for the program to non-utility sources. The annual cost to the average homeowner in Madison is less than $1 in 2026 and is expected to be around $2 per year in 2027. 

If approved, the resolution will also simplify the eligibility requirements to make it easier for income-qualified customers to sign up, and easier for City staff to administer. The proposed changes include:  

• Adopting a single qualifying income threshold instead of two separate tiers.
• Making enrollment in the City’s water conservation program a post-enrollment follow up measure rather than a prerequisite. 
• Simplifying enrollment by allowing applicants to show proof they are enrolled in another program with equal or lower income eligibility standards. This includes the Section 8 Housing Choice Voucher Program, the Women, Infants, and Children program (WIC), and Wisconsin FoodShare or SNAP benefits, depending on family size.  

This proposal will be reviewed by the City Finance Committee on March 2, and by the Common Council on March 10.