Governor Hochul Announces $434 Million to Make Local Water Infrastructure Projects Affordable Across New York State

Governor Kathy Hochul today announced $434 million to make water and sewer infrastructure improvement projects more affordable for communities statewide. The Environmental Facilities Corporation (EFC) Board of Directors approved low-cost financing and State and federal grants that empower local governments to modernize aging systems without passing high costs on to local ratepayers. These investments protect public health and the environment, reduce future risks and support good-paying jobs.

"Affordability means investing before problems become crises,” Governor Hochul said. “That's why we're making historic investments to help communities modernize their water infrastructure, protect public health and keep costs low for families across New York.”

EFC’s Board approved low-cost financing and previously announced grants through New York’s premier water infrastructure investment programs that help communities avoid overly burdensome rate increases. Board approval is a milestone in the funding process and allows communities to enter into funding agreements with EFC and access funds for their projects. Projects that reach the Board approval stage have completed environmental reviews and satisfied all other program requirements.

The funding announced today builds on EFC’s continued investments in drinking water and sewer projects in New York City. The Board approved $361 million in low-cost financing for 11 critical projects. With this funding announced today, EFC has provided $1 billion in financial assistance to these 11 projects as part of the State’s broader commitment to support affordable clean water in New York City.

Funding is provided through:

The Clean Water and Drinking Water State Revolving Funds: A mix of State and federal dollars that deliver more than $1 billion in low-cost financing and grants annually to New York communities. The federal Infrastructure Investment and Jobs Act has significantly bolstered the State Revolving Funds since 2022, driving critical investments to help modernize New York’s water and sewer infrastructure. This additional funding ceases this year.
The State’s Water Infrastructure Improvement and Intermunicipal Water Infrastructure Grants: Proven vehicles for affordability that have saved ratepayers more than $8.3 billion statewide since 2015. EFC is currently reviewing applications for $425 million in grant funding made available through these programs, representing the first installment of the Governor’s bold $3.75 billion clean water investment plan delivered in the FY 2027 Enacted State Budget.
The State’s Green Resiliency Grants: Launched by Governor Hochul in 2023 to protect New Yorkers from the impacts of extreme weather, with $121 million awarded to date.

Combining State and federal funding ensures every dollar goes further in modernizing aging infrastructure across the State, protecting public health and the environment. Fully funded State Revolving Funds are necessary for New York to meet the ongoing need for communities to repair, rehabilitate, and modernize aging infrastructure.

Environmental Facilities Corporation President and CEO Maureen A. Coleman said, “Governor Hochul's commitment to affordability is delivering real savings to pockets and pocketbooks across the State. Her nation-leading investments in clean water infrastructure fulfill her promise to make essential needs affordable for all New Yorkers, in communities both large and small. Every grant and low-cost loan help local governments safeguard public health and protect the environment while reducing the impact on household water and sewer bills.”

New York State Department of Environmental Conservation Commissioner Amanda Lefton said, “Improving water quality in our communities will deliver real results to millions of New York residents. The approval of $434 million in low-cost financing today and both federal and state grant funding emphasizes Governor Hochul’s commitment to clean water for all New Yorkers and our environment.”

State Health Commissioner Dr. James McDonald said, “Governor Hochul is committed to ensuring all New Yorkers have safe drinking water. These investments ensure local governments can affordably make improvements to their water infrastructure to protect the health of their communities without overburdening ratepayers. The Department’s Bureau of Water Supply Protection will continue to work with municipalities to identify funding opportunities and assist with applications and project development to make the most of all available funding.”

New York Secretary of State Walter T. Mosley said, “Affordability is one of the priorities for New Yorkers who are looking for livable, healthy communities. This investment of $434 million will allow towns, cities and villages to put shovels in the ground to modernize water and sewer systems that are critical for growth that will help the development of our environment and offer clean water at a low cost for local governments and residents.

Funding was approved for projects in the following regions:

Capital Region

Village of Corinth, $1.6 million State grant for the replacement of approximately 5,217 linear feet of sanitary sewer, 5,542 linear feet of storm sewer, and 22 manholes along Palmer and Gobel Avenues. By reducing the amount of groundwater and stormwater entering the system through aging clay pipes, the project will help the wastewater treatment plant operate more efficiently and maintain reliable treatment of wastewater before it is released to the Hudson River.EFC previously awarded interest-free financing to the project.

Finger Lakes

City of Canandaigua, $4.8 million in low-cost financing for the construction of headworks improvements at the water resource recovery facility to address overflow events during wet weather and protect water quality in the Canandaigua Outlet.

Hudson Valley

Town of Amenia, $3.9 million in State grant and low-cost financing for upgrades to the drinking water treatment plant, groundwater source, and the storage and distribution systems. The upgrades will improve system reliability and reduce the risk of unplanned failures.
Village of Pawling, $2.8 million in State and federal grants for development of five wells in the Lower Baxter Wellfield, construction of a treatment facility to treat the Lower Baxter and Umscheid Wells, and replacement of 2,000 linear feet of water main. The project is helping the Village provide an adequate and reliable supply of potable water to users. EFC previously awarded interest-free financing to the project.
Town of Warwick, $16 million in State grant and interest-free financing for the planning, design, and construction of upgrades to the Wickham Sewer District No. 1 Wastewater Treatment Plant that was built in the 1980s. The project will replace many components in poor or non-operational condition and improve treatment to protect water quality in the Longhouse Creek.

New York City, $361 million in low-cost financing as part of EFC’s continued support of the following drinking water and sewer projects:

Excavation and construction of Shafts 17B-1 and 18B-1, which are part of City Tunnel No. 3, Stage 2 in Queens. The project will provide redundancy for the water system and allow for better flow control and management.
Construction of a second water conveyance tunnel from the Kensico Reservoir to the Catskill/Delaware Ultraviolet Disinfection Facility in Eastview. Completion of this project would enhance operational resiliency and redundancy for the water supply system.
Improvements to the Hillview Reservoir that are necessary to cover the 900-million-gallon Hillview Reservoir, the final location where chemical treatment is provided upstream of the City’s distribution system, providing secondary treatment for at least 90% of the City’s water supply, and 50% of the City of Yonkers’ water supply.
Design and construction of primary treatment improvements at the Wards Island Wastewater Resource Recovery Facility to help maintain water quality in the East River.
Planning, design and construction of new backup power equipment at the Jamaica Wastewater Resource Recovery Facility to ensure uninterrupted treatment during emergencies.
Planning, design and construction of improvements to the sludge thickening process at the Oakwood Beach Wastewater Resource Recovery Facility to enhance operations and reduce energy consumption to protect water quality in Raritan Bay.
Design and construction of improvements to the Borden Avenue Pump Station to achieve water quality standards in the Dutch Kills stream, a tributary of Newtown Creek.
Design and construction of the 235th Street Pump Station to reduce combined sewer overflows to the Hudson River.
Design and construction of the rehabilitation of the 108th Street Pump Station to resolve operational issues and protect water quality in the Upper East River.
Design and construction of main sewage pump replacements at the Coney Island Wastewater Resource Recovery Facility to protect water quality in Jamaica Bay.
Design and construction of headworks improvements at the Port Richmond Water Resource Recovery Facility, replacing equipment that is 50 years old, to protect water quality in Kill Van Kull.

Long Island

Town of Riverhead, $17.6 million in interest-free financing for the construction of sludge facilities at the water resource recovery facility and waste facility. The project willreduce operational expenses and environmental impacts to protect water quality in the Peconic River.
Suffolk County Water Authority, $2.8 million in State grants for construction of granular activated carbon absorption vessels to remove PFAS from Well No. 3 at the Hawkins Road Well Field and Pump Station, and Well Nos. 2A and 3A at the Station Road well field.

North Country

Town of Lorraine, $4.4 million in federal grant and low-cost financing for connection to the Village of Adams water system and installation of approximately 14,000 linear feet of water main and associated appurtenances to serve the new Water District No. 1. The project will provide public water to 63 mostly residential customers that currently rely on private wells.
Town of North Elba, $5.4 million in low-cost financing for upgrades to the sewer district’s collection system. The project will reduce the amount of groundwater and stormwater entering the system and protect water quality in the Chubb River.

Southern Tier

Town of Bainbridge, $4 million in State grant and interest-free financing for sewer improvements to make the system more resilient during wet weather events and protect water quality in the Susquehanna River.
Town of Bath, $1.2 million in State grant for the design and construction of the Lake Salubria sewer extension which will ultimately take 127 failing septic systems out of service to protect Lake Salubria. EFC previously awarded low-cost financing and a federal grant to the project.
Village of Painted Post, $8.2 million in State grant and low-cost financing for improvements at Well No. 4, which will improve water quality and quantity, and protect public health.

Western New York

City of North Tonawanda, $1.5 million in State grant for the planning, design, and construction of new green infrastructure stormwater management practices and separate storm sewers along Oliver Street.

U.S. Senator Charles Schumer said, “These water infrastructure projects will create jobs and support communities across New York, from the Hudson Valley to the North Country. Access to clean drinking water and safe modern sewer infrastructure is fundamental to public health and boosting economic growth. I am proud to have secured millions in federal funding through the Clean Water and Drinking Water State Revolving Funds so New York communities can upgrade their water infrastructure systems. I will always fight to keep New York’s drinking water clean, sewer infrastructure strong, and our communities safe and healthy.”

New York State Association of Towns Executive Director Christopher A. Koetzle said, “There is nothing more important that local governments do than provide safe, clean and affordable water to its residents, and these grants will help some of our communities better meet that obligation. We are thankful for the Governor's commitment to our local governments. The Association will continue to make state and federal investments into our sewer and water infrastructure a top priority for us as we continue to advocate for various funding programs.”

New York State Association of Counties Executive Director Stephen Acquario said, “Water infrastructure is easy to overlook until it fails, but counties and local governments work every day to confront emerging contaminants such as PFAS and 1,4 dioxane and ensure water is clean, wastewater is treated safely and communities remain healthy and resilient. Modernizing these essential systems requires significant investment, and this $434 million in financing and grants will help communities make critical upgrades while shielding families from steep rate increases. We thank Governor Hochul and the State Legislature for continuing to invest in the affordable, modern water infrastructure New Yorkers depend on.”

New York State Conference of Mayors Executive Director Barbara Van Epps said, "The New York State Conference of Mayors applauds Governor Hochul's continued investment in New York's water and wastewater infrastructure. These grants and low-cost financing opportunities allow municipalities to move forward with critical projects without placing the full financial burden on local taxpayers. This funding represents a vital investment in the long-term strength and resiliency of our communities."

Nation-Leading Investments in Water Infrastructure

New York State continues to increase its historic investments in water infrastructure. The FY 2027 budget announced by Governor Hochul sets the national standard with a transformational $3.75 billion water infrastructure investment plan, which brings total clean water investments to $10 billion since 2017. New Yorkers can track projects benefiting from EFC’s investments using the interactive project impact dashboard.

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