Flint Residents to Receive Settlement Payouts from Water Crisis Fund

Flint Residents to Receive Payouts from Water Crisis Settlement Fund

This week, residents of Flint will begin receiving notifications detailing their share of the Flint water settlement fund. Starting on Friday, eligible individuals with approved claims can utilize an online portal to access their compensation.

With claims submitted by nearly 26,000 individuals, this fund—exceeding $600 million—was established by the state of Michigan, the city of Flint, McLaren Flint Hospital, and Rowe Professional Services to address lawsuits arising from the Flint water crisis.

Over ten years ago, the city of Flint’s water source was changed under the direction of an emergency manager appointed by then-Governor Rick Snyder. This decision aimed to cut costs but resulted in improper water treatment. The switch led to lead and other contaminants releasing into the city’s tap water from the Flint River.

U.S. District Court Judge Judith Levy recently approved the payment process, allowing funds to be distributed to claimants on a rolling basis. Initially, letters being sent pertain to property claims, with around 7,000 approved claims each valued at approximately $1,000.

According to the special master managing the settlement, most payments will be modest. Certain claims, particularly those concerning young children affected by high lead levels during the crisis, may receive up to $100,000.

Settlement Fund Allocation

The distribution of the settlement fund is structured as follows:

• Children 6 and under at the time of the crisis receive 64.5%
• Children aged 7-11 are allocated 10%
• Children aged 12-17 are allocated 5%
• Adults with eligible injury receive 15%
• Residential property damage claims are allocated 3% (up to $1,000 per property)
• Business loss claims receive 0.5% (up to $5,000 per business)

Overall, there are 30 different claim categories. The precise amount of the Flint water settlement fund remains uncertain as it has grown from interest since its initial creation in 2020, originally valued at $626.5 million.