Michigan Finalizes Flint Water Crisis Settlement Plan

FLINT, MI — The Michigan House has approved bills allowing the state to issue bonds to cover Michigan's $600 million portions of a settlement relating to the Flint water crisis.

The House approved the bills Wednesday after the Michigan Senate approved them last week. The bills authorize a loan from a state economic development fund, which the state would pay over the course of three decades at $35 million annually, according to The Detroit News.

"A settlement does not turn back the clock and it does not right these grave wrongs," said Senate Democratic Leader Jim Ananich of Flint, who sponsored the bill. "No amount of money can do that. However, it is a powerful acknowledgment of the real harm done to us."

Related: $600M Preliminary Settlement Reached In Flint Water Lawsuits

A preliminary agreement in the Flint water-related civil lawsuits was reached in August, offering a state of Michigan-backed settlement of $600 million to parties who were affected by the city of Flint's 2014 transition of its public water supply to the Flint River, with the majority of the money going to settle claims filed on behalf of children affected during the crisis.

Michigan Attorney General Dana Nessel said at the time that the settlement was agreed to following more than 18 months of negotiations, though several steps must be taken before the money will be disbursed, Nessel said.

"This settlement focuses on the children and the future of Flint, and the State will do all it can to make this a step forward in the healing process for one of Michigan's most resilient cities," Nessel said at the time. "Ultimately, by reaching this agreement, I hope we can begin the process of closing one of the most difficult chapters in our State's history and writing a new one that starts with a government that works on behalf of all of its people."

Flint switched its water source from the city of Detroit to the Flint River to save money in 2014, while under the control of a state-appointed emergency manager, the Associated Press reported. State environmental regulators advised Flint not to apply corrosion controls to the water, which was contaminated by lead from aging pipes.

Residents quickly began complaining that the water was discolored and had a bad taste and smell. They blamed it for rashes, hair loss and other health concerns, but local and state officials insisted it was safe, the Associated Press reported.

Researchers with Virginia Tech University reported in summer 2015 that samples of Flint water had abnormally high lead levels. Shortly afterward, a group of doctors announced that local children had high levels of lead in their blood and urged Flint to stop using water from the river.

Then- Gov. Rick Snyder eventually acknowledged the problem, accepted the resignation of his environmental chief and pledged to aid the city, which resumed using Detroit water.

Researchers said in late 2016 that lead was no longer detectable in many homes. But residents used bottled water for drinking and household needs for over a year, and trust issues remain between the residents and the water provided to them.

Information and reporting from the Associated Press was used in this report.