$288M for Local Water Infrastructure Projects

Governor Kathy Hochul today announced $288 million was made available to help communities across the State affordably undertake water and sewer infrastructure improvement projects. The Environmental Facilities Corporation Board of Directors approved low-cost financing and State and federal grants that empower local governments to advance crucial upgrades — such as replacing lead service lines and modernizing aging systems — without passing high costs on to ratepayers. These investments protect public health and the environment, reduce future risks, and support good-paying jobs.

“My administration is tackling water quality issues head-on with strategic investments that will benefit New Yorkers for generations to come,” Governor Hochul said. “This $288 million investment lowers the cost of vital water projects for local governments, protects public health, and keeps affordability front and center across the State.”

The funding approved today includes investments in New York City from the federal Infrastructure Investment and Jobs Act (IIJA) and Governor Hochul’s Lead Infrastructure Forgiveness and Transformation (LIFT) grant program. These investments are part of the $535 million Statewide effort to help communities pay for lead service line inventory and replacement projects. These loan forgiveness grants help cover costs not fully paid for by federal grants, minimizing the financial burden on local ratepayers.

EFC’s Board approved funding from the Clean Water and Drinking Water State Revolving Funds — New York’s primary tool for financing sewer and water infrastructure. These funds, supported by both State and federal sources, offer low-interest financing to help communities afford essential projects. IIJA funding for water infrastructure is administered through the State Revolving Funds.

Fully funded State Revolving Funds are necessary for New York to be prepared to meet the ongoing need for communities to repair, rehabilitate, and modernize aging infrastructure in the future. The State Revolving Funds deliver over $1 billion annually to New York communities and have been significantly bolstered by federal funding. By making clean water financing more accessible, these programs help ensure New Yorkers have access to safe drinking water, prevent infrastructure failures that threaten the environment, and avoid costly rate increases.

EFC also approved previously awarded grants from the Water Infrastructure Improvement program, including two grants funded by the Clean Water, Clean Air, and Green Jobs Environmental Bond Act. The City of Rochester will use Environmental Bond Act funds for drinking water system improvements, including lead service line replacement. The City of Schenectady will use Bond Act and IIJA grants to improve its wastewater system. Board approval is a critical step in the funding process. It allows communities to enter into an agreement and access these dollars for project implementation.

The investment strategy of leveraging federal and State funds ensures every dollar goes further in protecting public health and modernizing aging infrastructure across the State.

New York State Environmental Facilities Corporation President & CEO Maureen A. Coleman said, “By leveraging State and federal resources, New York is making essential water infrastructure upgrades affordable for communities of all sizes. Governor Hochul’s landmark $3.75 billion plan, announced in the 2026 State of the State address, builds on New York’s nation-leading investments and will ensure communities have continued financial support for replacing lead service lines, modernizing aging systems, and delivering clean, safe water for generations to come.”

New York State Department of Environmental Conservation Commissioner Amanda Lefton said, “Since taking office, and most recently in the 2026 State of the State, Governor Hochul has made historic investments in water infrastructure and climate resiliency to support communities across the State. The availability of $288 million in grants and low-cost financing complements the $3.75 billion five-year proposal to help support DEC’s Water Quality Improvement Project and other programs to help local governments invest in critical wastewater and drinking water infrastructure that help protect public health and New York’s natural environment.” 

New York State Health Commissioner Dr. James McDonald said, “Governor Hochul is committed to removing health disparities by targeting funding like this to communities across the State so that they may afford to replace lead service lines and deliver safe drinking water to communities. This commitment is further evidenced by her recently announced plan to invest an additional $3.75 billion to ensure all New Yorkers have a basic right to safe drinking water and reliable water infrastructure that will carry us into the future.”

New York State Secretary of State Walter T. Mosley said, “New York State continues to be a nationwide leader in upgrading water infrastructure while bringing strategic investments to communities around the State. This $288 million investment will help communities across New York to affordably undertake water and sewer infrastructure improvement projects, yielding public health, environmental and economic benefits now and for generations to come.”

Senator Kirsten Gillibrand said, “Every family in New York deserves to be able to turn on the tap and trust that the water coming into their home is safe. But for too many New Yorkers, that still isn’t the case. I’m proud to have delivered funding to replace lead service lines across our state, and I will keep fighting to finish the job and ensure every New Yorker has access to safe, clean, and affordable drinking water.”

Funding was approved for projects in the following regions:

Capital Region

• Albany Municipal Water Finance Authority, $8.4 million in low-cost financing for the replacement of 5,470 linear feet of aging and undersized drinking water main, valves and appurtenances and installation of 1,170 linear feet of new water main, valves and appurtenances.
• City of Schenectady, $30 million in State and federal grants and low-cost financing for the planning, design, and construction of infrastructure improvements at the water resource recovery facility and in the lower State Street area. The State grant is funded by the Environmental Bond Act.

Finger Lakes

• Town of Groveland, $3.4 million State grant for the formation of the Groveland Water District No. 1.
• City of Rochester, $5 million State grant for the cleaning and lining of approximately 28,500 linear feet of water main and replacement of approximately 770 lead service lines. The grant is funded by the Environmental Bond Act.
• Village of Warsaw, $12.1 million in State grant and interest-free financing for improvements to the drinking water treatment plant, including new security features, structural repairs to tanks and basins, replacement of all mechanical and stationary equipment inside the mixing chamber, sedimentation tanks and multi-media filters, and new pumps for backwashing the filters.

Long Island

• Town of Riverhead, $16 million in interest-free financing for the construction of solids processing facilities.
• Village of Sag Harbor, $2 million State grant for the construction of new sewers to allow residents in Sewersheds K and L to decommission their failed or failing septic systems.

Mid-Hudson

• Village of Kiryas Joel, $3.5 million in federal grant and interest-free financing for the construction of tertiary filtration improvements at the wastewater treatment plant.
• Village of Liberty, $9.9 million in State and federal grants and interest-free financing for the planning, design, and construction of upgrades to the wastewater treatment plant.

Mohawk Valley

• Village of Dolgeville, $1 million in interest-free financing for the planning, design, and construction of sewage collection system improvements.
• Town of Indian Lake, $7.1 million in State and federal grants and interest-free financing for the replacement of the existing surface water treatment plant with a new packaged membrane filtration plant having a treatment capacity of 0.288 million gallons per day.

New York City, $114 million in State and federal grants and interest-free financing, including loan forgiveness LIFT grants, for eight projects including:

• Replacement of 3,252 lead service lines in the Bronx.
• Replacement of 456 lead service lines in Queens.
• Replacement of 683 lead service lines in Brooklyn.

North Country

• Town of Champlain, $16.4 million in State and federal grants and low-cost financing for the planning, design, and construction of a new sanitary sewer collection system.
• Village of Philadelphia, $245,044 in federal grant for the planning, design, and construction of disinfection improvements at the wastewater treatment plant.

Southern Tier

• Village of Richfield Springs, $23.5 million in State and federal grants and interest-free financing for the planning, design, and construction of wastewater treatment plant and collection system improvements.

Western New York

• Buffalo Sewer Authority, $29.3 million in low-cost financing for the design and construction of combined sewer overflow controls on Breckenridge Street in accordance with its Long-Term Control Plan.
• Niagara Falls Public Water Authority, $5.8 million in State and federal grants and interest-free financing for the planning, design, and construction of improvements to the Niagara Falls Wastewater Treatment Plant to address aging and failing equipment.

Refinancing Completed Projects Will Achieve Long-Term Debt Service Savings for New York City

The Board also took action to help ensure continued, long-term affordability of existing drinking water and sewer projects in New York City. The Board approved a $579 million bond sale for refinancing various drinking water and sewer projects and refunding certain prior bonds. Refundings are part of EFC’s proactive financial management to ensure projects remain cost-effective over the life of the financing and reduce debt service payments.

New York's Commitment to Water Quality

New York State continues to increase its nation-leading investments in water infrastructure, providing $3.8 billion in financial assistance for local projects in State Fiscal Year 2025 alone, including $1.1 billion in grants.

Governor Hochul set the national standard with a transformational $3.75 billion water infrastructure investment plan in the 2026 State of the State address, which would bring total investments to nearly $10 billion since 2017. Any community needing assistance with water infrastructure projects is encouraged to contact EFC. New Yorkers can track projects benefiting from EFC’s investments using the interactive project impact dashboard.