Governor Kathy Hochul has announced the allocation of $135 million to support water and sewer infrastructure projects across New York State. The Environmental Facilities Corporation (EFC) Board of Directors approved a mix of low-cost financing and state and federal grants aimed at helping local governments undertake essential upgrades, including replacing lead service lines and removing contaminants from drinking water.
According to Governor Hochul, “From the water we drink to the places we swim, New Yorkers rely on strong and reliable water systems. These investments keep our water clean, our communities safe, and our costs low while building more sustainable and resilient infrastructure for the future.”
The funding includes a $19 million federal Infrastructure Investment and Jobs Act (IIJA) grant directed toward Southampton’s new wastewater collection system and treatment plant in Riverside. This initiative is part of broader efforts to protect Long Island’s aquifer system, the Peconic Estuary, and other bodies of water.
Another component is a state grant under Governor Hochul’s $100 million Lead Infrastructure Forgiveness and Transformation (LIFT) program. EFC approved $2 million in LIFT and IIJA funds for Bath Village in the Southern Tier to replace lead service lines. Bath is among 13 communities receiving loan forgiveness grants that cover costs not fully addressed by federal grants.
Funding was also authorized from New York’s Clean Water and Drinking Water State Revolving Funds—key sources supported by both state and federal dollars—which provide low-interest financing for vital infrastructure work. These revolving funds deliver over $1 billion annually for community projects statewide.
Board approval also allows communities to access previously awarded grants from programs such as the Water Infrastructure Improvement program. Three grants funded by the Clean Water, Clean Air, and Green Jobs Environmental Bond Act were included this cycle.
Maureen A. Coleman, President & CEO of EFC, stated: “The $135 million announced today is a significant investment in New York’s communities and environment. The State Revolving Funds and State water grants are proven programs that help communities meet their water infrastructure needs and plan for long-term success.”
Amanda Lefton, Commissioner of the Department of Environmental Conservation, commented: “Under Governor Hochul’s leadership, New York continues to prioritize investments in water and sewer infrastructure to ensure all communities have access to clean water. The $135 million invested today delivers the resources municipalities need to develop, improve, and implement affordable projects to remove contaminants and improve aging sewers by leveraging the federal Infrastructure Investment and Jobs Act, Clean Water, Clean Air and Green Jobs Environmental Bond Act funds, and the State’s Lead Infrastructure Forgiveness and Transformation program. These actions address critical infrastructure needs, protect the environment, and promote good-paying jobs statewide.”
Dr. James McDonald, Health Commissioner for New York State said: “This latest round of water infrastructure funding represents Governor Hochul’s continued commitment to safeguarding the public’s health by making it affordable for communities to eliminate lead from plumbing and remove emerging contaminants from drinking water. The Department’s Bureau of Water Supply Protection will continue to work with our state and local partners on investments that ensure water delivered to consumers here in New York State meets the highest standards.”
Secretary of State Walter T. Mosley added: “Governor Hochul continues to make key investments in drinking water and wastewater infrastructure to create healthy, resilient communities and clean waterways. The infusion of $135 million by the Environmental Facilities Corporation will help local communities advance critical projects with low-cost financing to develop stronger communities and a better quality of life for all New Yorkers.”
Senator Charles Schumer remarked: “Everyone deserves access to clean and modern water and sewer systems. Now, thanks to my Bipartisan Infrastructure & Jobs Law, millions are flowing to communities from Southampton to Syracuse to upgrade water infrastructure. These dollars will help give municipalities the support needed to modernize critical water systems. It also means jobs, jobs, jobs… I am proud to deliver this major funding…”
Senator Kirsten Gillibrand stated: “All New Yorkers deserve … safe … reliable …water systems… This $135 million investment…will boost public health across our state…support jobs…and grow local economies…”
Representative John W. Mannion said: “It’s the role of government …to build…the critical infrastructure that delivers…the clean water that every family…needs…I’m grateful…for supporting projects in Moravia,Owasco,and Syracuse…”
State Senator Peter Harckham noted: “Investing in water infrastructure projects is key…municipalities statewide will upgrade … protecting this vital resource…while also saving residents millions…”
Projects receiving funding span several regions:
– In Central New York: Moravia receives $10.8 million; Owasco gets $3.7 million; Syracuse secures nearly half a million.
– In Long Island: Southampton gains a major grant; Manhasset Lakeville Water District receives funding for contaminant removal technology.
– Other regions benefiting include Finger Lakes (Rushville), Mid-Hudson (Cortlandt,Middletown,and Port Chester), Mohawk Valley (Oneonta,Ricmondville), North Country (LeRay), Southern Tier (Bath), Western NY (Chautauqua County,Pomfret).
Additionally,the Board approved long-term interest-free refinancing ($7 million) for Chesterfield’s drinking-water project,saving an estimated$11millionininterestpaymentsforthecommunityoverthirtyyears.
New York has allocated over$3billionin financial assistance through EFC during fiscal year 2025 alone.With$500millionearmarkedintheFY26EnactedBudget,the total investment since2017willexceed$6billion.ThestateencouragescommunitiestocontactEFCforassistancewithwaterprojects,andprogresscanbetrackedviatheagency’sinteractiveprojectimpactdashboard.
