Governor Hochul Announces $135 Million Made Available to Affordably Advance Local Water Infrastructure Projects Across New York State

Governor Kathy Hochul today announced $135 million was made available to help communities across the State affordably undertake critical 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 removing emerging contaminants from drinking water - without passing high costs on to ratepayers. These investments protect public health and the environment, reduce future risks, and support good-paying jobs.

"From the water we drink to the places we swim, New Yorkers rely on strong and reliable water systems," Governor Hochul said. "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 approved today includes a $19 million federal Infrastructure Investment and Jobs Act (IIJA) grant for the Town of Southampton's new wastewater collection system and treatment plant in Riverside. The grant reinforces the State's commitment to safeguarding Long Island's sole source aquifer system, the Peconic Estuary, and other water bodies.

The funding also includes a State grant under Governor Hochul's $100 million Lead Infrastructure Forgiveness and Transformation (LIFT) program. EFC's Board approved $2 million in LIFT and IIJA funding to replace lead service lines in the Southern Tier's Village of Bath. It's part of a broader $469 million Statewide effort to get the lead out. Bath is one of 13 communities receiving these loan forgiveness grants to help cover costs not fully paid for by federal grants, minimizing the financial burden of these vital projects on local ratepayers.

EFC's Board approved funding from the Clean Water and Drinking Water State Revolving Funds - New York's primary mechanism 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 IIJA 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 three grants funded by the Clean Water, Clean Air, and Green Jobs Environmental Bond Act. 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 combined investment strategy of leveraging federal and State funds ensures every dollar goes further in protecting public health and modernizing aging infrastructure across the state.

Environmental Facilities Corporation President & CEO Maureen A. Coleman said, "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."

New York State Department of Environmental Conservation Commissioner Amanda Lefton said, "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 and meet critical infrastructure needs, protect the environment, and promote good-paying jobs statewide."

New York State Health Commissioner Dr. James McDonald 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."

New York State Secretary of State Walter T. Mosley said, "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 said, "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, uplifting our communities and boosting the economy with long-overdue projects to make New York's waters healthier and cleaner. I am proud to deliver this major funding and am grateful for Governor Hochul's partnership in the fight to turn the tide on our state's aging water infrastructure, create jobs for New Yorkers, and keep our communities safe and healthy."

Senator Kirsten Gillibrand said, "All New Yorkers deserve to have access to safe, reliable water systems. This $135 million investment to upgrade our critical water infrastructure will boost public health across our state, support jobs, and grow local economies. I'm proud to have fought for the federal portion of this funding, and I'll continue to work tirelessly to make sure that New York families, workers, and businesses have what they need to thrive."

Representative John W. Mannion said, "It's the role of government to build and maintain the critical infrastructure that delivers the clean water that every family and community needs, and I'm committed to securing these investments across NY-22. I'm grateful to Governor Hochul and the Environmental Facilities Corporation for supporting projects in Moravia, Owasco, and Syracuse that will protect public health and ensure that our water systems remain safe and reliable."

State Senator Peter Harckham said, "Investing in water infrastructure projects is key to maintaining public health and sustaining economic growth in our communities. Thanks to favorable financing for loans and strong grant programs overseen by the New York's Environmental Facilities Corporation, municipalities statewide will upgrade water lines, remove lead piping and decrease contaminants in their clean drinking water systems, protecting this vital resource for future generations while also saving residents millions of dollars."

Funding was approved for projects in the following regions:

Central New York

• Village of Moravia - $10.8 million grant and financing package for upgrades at the wastewater treatment plant.
• Town of Owasco - $3.7 million for new storm sewers and replacement of sanitary sewers to reduce inflow and infiltration in Sewer District No. 1's collection system.
• City of Syracuse - $478,825 in State and Federal grants for a new sanitary sewer main on Rann Avenue.

Finger Lakes

• Village of Rushville - $1.5 million grant and financing package for the addition of carbon filtration at the water treatment plant.

Long Island

• Manhasset Lakeville Water District - $2.8 million State grant for the installation of a new granular activated carbon (GAC) adsorption treatment system for the removal of PFOA from Well No. 1 at the Campbell Station.
• Town of Southampton - $19 million federal grant for a new wastewater collection system and wastewater treatment plant in Riverside.
• Water Authority of Great Neck North - $5 million State grant for the installation of GAC and ion exchange treatment systems for the removal of PFAS from the wells at the Community Drive Facility.
• Village of Williston Park - $5 million State grant for the installation of a new GAC adsorption treatment system for the removal of PFOA and PFOS from Well No. 4

Mid-Hudson

• Town of Cortlandt- $603,533 in low-cost financing for construction at the Valeria Wastewater Treatment Plant and related collection system improvements, serving the Dickerson Pond Sewer District.
• City of Middletown- $8 million State grant and financing package for Phase 1A of the Kinch Pond raw water transmission main replacement. The grant is funded by the Environmental Bond Act.
• Village of Port Chester- $35 million in State and federal grants and financing for two sanitary sewer upgrade projects. One of the State grants is funded by the Environmental Bond Act.

Mohawk Valley

• City of Oneonta- $5.3 million in federal grant and low-cost financing for improvements at the wastewater treatment plant.
• Town of Richmondville - $15.7 million in State and federal grants and financing for the planning, design, and construction of a sewer collection system for the Hamlet of Warnerville.

North Country

• Town of LeRay- $3.3 million State and federal grant and financing package for the installation of approximately 13,000 linear feet of water main and associated appurtenances to extend the existing consolidated water district and connect to the former Water District No. 3.

Southern Tier

• Village of Bath - $2 million in State and federal grants and financing, including a loan forgiveness LIFT grant, for the replacement of 100 lead service lines.

Western New York

• Chautauqua County - $4 million State grant and interest-free financing package for collection system improvements to reduce inflow and infiltration in the North Chautauqua Lake Sewer District in the Village of Mayville.
• Town of Pomfret - $5 million State grant for the formation of the North End Water District, including installation of approximately 74,000 linear feet of water mains, two new 100,000-gallon water storage tanks, 2 pump stations and appurtenances such as hydrants, valves and meters. The grant is funded by the Environmental Bond Act.

Refinancing a Completed Project Will Achieve Long-Term Debt Service Savings

The Board also took action to help ensure continued, long-term affordability of an existing project. Short-term financing provides capital 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, saving municipalities significant interest expenses versus financing on their own.

The Board approved $7 million in long-term interest-free financing for the Town of Chesterfield's drinking water project in the North Country. Based on current market conditions, this long-term financing is projected to save local ratepayers an estimated $11.3 million in interest payments over the life of the financing.

New York's Commitment to Water Quality

New York State continues to increase its nation-leading investments in water infrastructure, including more than $3.4 billion in financial assistance from EFC for local water infrastructure projects in State Fiscal Year 2025 alone.

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 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.

Contact the Governor's Press Office