Governor Kathy Hochul today announced that the Environmental Facilities Corporation Board of Directors approved nearly $200 million in financial assistance for water infrastructure improvement projects across New York State. The Board’s approval authorizes municipal access to low-cost financing and grants to get shovels in the ground for critical water and sewer infrastructure projects, from treatment processes to remove emerging contaminants from drinking water, to replacing lead service lines and modernizing aging systems. These investments protect public health and make projects more affordable, reducing the need for higher rate increases to fund improvements, while also creating good-paying jobs.

“Clean water is a fundamental right, and New York is leading the way in making sure communities have the resources they need to protect it,” Governor Hochul said. “This funding will help New York City and communities across the state make critical upgrades to aging infrastructure, reduce pollution, and deliver safe, reliable water, while protecting the pockets of New Yorkers.”

The Board approved a major $50 million investment in New York City, including a $25 million grant from the federal Infrastructure Investment and Jobs Act (IIJA) funding. The grant will be used by New York City exclusively for affordability programs that provide financial assistance to low-income water and sewer customers. The $25 million in interest-free financing will support a stormwater and resiliency project that is a key component of the larger Gowanus Canal Superfund Site cleanup. Construction of underground tanks and a network of improvements will fortify the City’s sewers and reduce combined sewage and stormwater overflows that have polluted the canal for a century.

Today’s announcement builds on a longstanding State-City partnership that has advanced transformative water and sewer improvements. EFC’s financial assistance over the past 15 years has saved City ratepayers more than $2.7 billion on water infrastructure projects, including more than $400 million in direct grants. Under Governor Hochul’s leadership, the State continues to deliver critical financial resources to complete essential projects, ease the burden on local ratepayers, and build stronger, more resilient neighborhoods for generations to come.

EFC’s Board approved grants and financings to local governments from the Clean Water and Drinking Water State Revolving Funds – a mix of federal and state dollars dedicated to financing community water infrastructure projects. State Revolving Fund interest rates are below market rate, and with long repayment periods, communities may save significantly on debt service compared to traditional financing. IIJA funding bolstered the State Revolving Funds and accelerated progress on essential clean water and drinking water projects.

The Board also approved executing previously awarded State grants from the Water Infrastructure Improvement and Lead Infrastructure Forgiveness and Transformation programs. EFC Board approval is a critical step in the funding process and will allow communities to access these funds for project implementation. Leveraging federal funding with state investments maximizes the impact of each dollar spent, empowering local communities to make critical system improvements they need to keep their residents safe and ensuring cost is not a barrier for project implementation.

Environmental Facilities Corporation President & CEO Maureen A. Coleman said, “Under Governor Hochul’s leadership, we are making historic investments that help communities take on complex, long-needed infrastructure projects without overburdening local ratepayers. Today’s announcement underscores the State’s unwavering commitment to affordable drinking water and wastewater service in New York City and communities statewide. We’re not just financing construction—we’re helping to deliver a cleaner, greener, more resilient future that New Yorkers deserve.”

New York State Department of Environmental Conservation Commissioner Amanda Lefton said, “Investing in local water infrastructure and ensuring all communities have access to clean water is a top priority for New York. Across the state, municipalities large and small are challenged by aging water mains, crumbling wastewater treatment facilities, and outdated sewer systems. Governor Hochul continues to make generational investments that will help communities address critical infrastructure needs and protect water quality, water quantity, and our environment while keeping costs down for cash-strapped municipalities and New Yorkers.”

New York State Health Commissioner Dr. James McDonald said, “Governor Hochul has made it clear that access to safe, clean drinking water is a top priority. This latest round of funding helps ensure those critical projects—like removing emerging contaminants—are both an affordable and achievable reality for communities across New York State. The State Health Department will continue to work with local municipalities and our state partners to make sure the water coming from the tap is safe and healthy for all New Yorkers.”

New York State Secretary of State Walter T. Mosley said, “Governor Hochul recognizes that clean water infrastructure is vital to public health, economic development and community quality of life. The Governor’s visionary commitment of $200 million in low-cost financing and grants provides local governments with the support they need to become more resilient, sustainable and prosperous well into the future.”

Senator Charles Schumer said, “Everyone deserves access to clean drinking water. These major federal investments will ensure families from Chautauqua to Port Washington have safe drinking water and our beautiful waterways stay clean, all while creating new good-paying jobs, jobs, jobs. I am proud to deliver millions in federal funding and will fight to preserve funding to modernize drinking water and water-sewer systems in the upcoming budget. I am grateful for Governor Hochul’s partnership in the fight to turn the tide on our state’s aging water infrastructure to keep our communities safe and healthy.”

Representative Grace Meng said, “From combating flooding to ensuring clean drinking water, upgrading our water infrastructure is a crucial investment in our state’s future, and I’m always proud to fight for funding that makes these types of projects possible. I thank Governor Hochul for her leadership and helping to make needed improvements happen across New York.”

Representative Joe Morelle said, “Everyone deserves to have confidence that the water from their kitchen faucet is clean and safe to use. In Washington, I’m always fighting for projects that support our community’s health and wellbeing. I’m grateful to Governor Hochul for her continued leadership and partnership in building a healthier New York for all.”

Representative Tom Suozzi said, “The Governor and the state are effectively delivering essential funds to New York’s local water providers from the Bipartisan Infrastructure Law, which I helped negotiate as a member of the Problem Solvers Caucus. The Port Washington project is a crucial investment that will enhance and protect our water infrastructure for future generations while reducing the financial burden on our local taxpayers. I will continue to work with the state to try and bring vital federal resources back to New York.”

Representative Pat Ryan said, “The freedom to drink clean water is fundamentally American. Our community has been pushing hard to ensure that every Hudson Valley family – especially our kids – has access to clean, safe drinking water. We’ve made real progress, including in Poughkeepsie. Last year, I was proud to work with the Governor to secure critical funds for lead pipe removal in Poughkeepsie. This funding is another step towards ensuring clean water for all, and I thank the Governor and all our partners for their advocacy and commitment to Hudson Valley public health.”

State Senator Pete Harckham said, “This major investment from the state ensures public health standards while supporting local municipalities. Maintaining safe, accessible drinking water sources and supply systems is integral to future growth and prosperity, and I thank Governor Hochul, my colleagues in the State Legislature and the New York State Environmental Facilities Corporation for making the financial commitment to see this through.”

Assemblymember Deborah J. Glick said, “Communities across New York are facing mounting challenges when it comes to water infrastructure—whether it’s combating contaminants like PFAS, repairing aging water and sewer systems, or replacing lead service lines. This critical funding provides much-needed support to local governments working to protect public health and ensure clean, safe water. I’m especially grateful that $50 million has been directed to support infrastructure improvements in New York City, and I thank Governor Hochul for her continued leadership in prioritizing these essential investments.”

New York City Department of Environmental Protection Commissioner Rohit T. Aggarwala said, “New York City is home to nearly half of the State’s population and will make full and beneficial use of this grant and financing, which will help the people of Gowanus as well as low-income water customers across the five boroughs. This commitment from the State represents a new and positive development in the collaboration between EFC and DEP and I’m grateful for this partnership.”

Funding was approved for projects in the following regions:

Finger Lakes

• Town of Leroy – $5 million grant for the formation of Water District No. 12, including installation of approximately 173,000 linear feet of water mains and appurtenances including hydrants, valves, and service meters.
• Town of Milo – $366,000 grant for the installation of 4,600 linear feet of water main, gate valves, hydrants, meters, and additional appurtenances along NYS Route 54 to form Water District No. 4.
• City of Rochester – $24 million for the replacement of 3,269 lead service lines, approximately 14% of the total lead and galvanized services lines in the water system. Rochester is one of 12 municipalities to receive a State grant as well as federal IIJA grants and interest-free financing for lead service line replacement. The State grant will reimburse costs that were not fully covered by IIJA grants, so upon completion of this project, the City won’t have to pay back the financing.

Long Island

• Village of Farmingdale – $4.6 million grant for the installation of an advanced oxidation process treatment system for the removal of 1,4-dioxane and a granular activated carbon treatment system for removal of PFOA and PFOS at the Ridge Road Well Site Plant No. 2.
• Port Washington Water District – $5 million in grants for the construction of a granular activated carbon treatment system for the removal of PFOA and PFOS from Hewlett Well No. 4.
• Suffolk County Water Authority – $1.5 million grant for the installation of approximately 7,500 linear feet of water main, gate valves, hydrants, meters, and additional appurtenances to provide public water to homes with contaminated private wells along Old Country Road.

Mid-Hudson

• City of Poughkeepsie – $6.7 million grant and low-cost financing package for the rehabilitation of the Fallkill Trunk portion of the sanitary sewer collection system.

North Country

• Village of Port Leyden – $8 million grant and interest-free financing package for the replacement of approximately 18,000 linear feet of water main and associated appurtenances, replacement of water meters, and water treatment plant upgrades.

New York City

• New York City Municipal Water Finance Authority – $50 million grant and interest-free financing package for the planning, design, and construction of the Gowanus Canal combined sewer overflow abatement facilities.

Western New York

• Village of Andover – $1.4 million grant for the development of a new groundwater well to provide needed source redundancy and replace an existing noncompliant spring source. The Board previously approved an interest-free financing in addition to the grant to support this project.
• Town of Chautauqua – $7.7 million grant and interest-free financing package for the development of two new groundwater wells and a new treatment plant to replace the existing water source and treatment plant, and installation of approximately 14,000 linear feet of transmission and distribution water mains to extend the water district and serve 345 new residences that are currently dependent on private wells.
• Town of Clymer – $10.5 million grant and interest-free financing package for the development and installation of a new ground water well to provide additional source capacity, replacement of approximately 26,000 linear feet of watermains, valves, hydrants, and appurtenances and a new 200,000-gallon water storage tank to replace a deteriorated tank.
• Town of Ellicott – $6.4 million in grants for the design and construction of a sewer district extension.
• Town of Randolph – $4.5 million grant and low-cost financing package for the planning, design, and construction of wastewater treatment plant improvements.
• Town of Westfield – $9.5 million grant and interest-free financing for the design and construction of wastewater treatment plant and collection system improvements.

Refinancing Completed Projects Will Achieve Long-Term Debt Service Savings
The Board also took action to help ensure continued, long-term affordability of existing projects. EFC provides short-term financing for design and construction of projects. Once project construction is completed, the short-term financing is typically refinanced to long-term financing for up to 30 years. Based on current market conditions, these long-term interest-free financings are projected to save local ratepayers an estimated $51 million in interest payments over the life of the financings.

The Board approved long-term financing for projects undertaken by communities in the following regions:

Mohawk Valley

• Village of Middleburgh – $2.5 million long-term interest-free financing for the planning, design, and construction of upgrades to the wastewater treatment plant.

New York City

• New York City Municipal Water Finance Authority – $42 million long-term interest-free financing for the design and construction of new engine generators to utilize digester gas and natural gas to cogenerate power and heat for on-site use at the North River Water Resource Recovery Facility.

North Country

• Village of Lowville – $9.3 million long-term interest-free financing for the planning, design, and construction of wastewater treatment plant improvements.

New York’s Commitment to Water Quality
New York State continues to increase its nation-leading investments in water infrastructure, including more than $2.2 billion in financial assistance from EFC for local water infrastructure projects in State Fiscal Year 2024 alone. The next round of EFC’s Water Infrastructure Improvement and Intermunicipal Water Infrastructure Grants is now open at www.efc.ny.gov. Governor Hochul has announced $325 million for this round.

With $500 million allocated for clean water infrastructure in the FY26 Enacted Budget announced by Governor Hochul, New York will have invested a total of $6 billion in water infrastructure between 2017 and this year. 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.