Governor Hochul Celebrates Landmark $3.8 Billion Investment in Water Infrastructure During SFY 2025

Governor Kathy Hochul today announced the State's $3.8 billion investment in local water infrastructure projects during State Fiscal Year 2025. A newly released New York State Clean Water Funding Report shows that New York delivered $1.1 billion in water quality grants in a single fiscal year, significantly reducing costs for local governments, families and businesses. Governor Hochul's administration is providing unprecedented support to advance drinking water, wastewater and stormwater upgrades that are protecting public health and the environment, building community resiliency, improving quality of life and creating good-paying jobs.

"New York continues to set a national standard for water infrastructure investment that keeps water rates affordable for our communities," Governor Hochul said. "We're beginning to see tremendous progress as supported projects are completed and deliver benefits where they're needed most."

The historic $3.8 billion investment was made possible by Governor Hochul's continued grant funding commitments for clean water, a surge of federal funding to the State Revolving Funds from the Infrastructure Investment and Jobs Act, and State funding through the transformational Clean Water, Clean Air, and Green Jobs Environmental Bond Act and the Environmental Protection Fund. This reflects a whole-of-government commitment to protecting public health, safeguarding the environment, and keeping water rates affordable for New Yorkers.

The Environmental Facilities Corporation (EFC) anchors most of the distributed funding as the State's water infrastructure bank. The Governor's clean water and affordability agendas succeed with the expertise of EFC, the Departments of Environmental Conservation (DEC), Health (DOH), State (DOS), and Agriculture and Markets (Ag&M), and the Division of Homes and Community Renewal (HCR). These agencies provide grants that help address the diverse water infrastructure needs of communities statewide. The Division of Homeland Security and Emergency Services (DHSES) administers Federal Emergency Management Agency (FEMA) programs that complement the State's funding by providing resources that help ensure local investments deliver lasting value.

The hundreds of projects supported through the SFY 2025 investment include:

• Treatment plant upgrades
• New and repaired water mains
• New and improved wastewater collection and sewer systems, including the decommissioning or replacement of failing septic systems
• Treatment of public water supplies to remove emerging contaminants
• Lead service line inventory and replacement
• Stormwater management systems
• Land acquisition for source water protection
• Improved salt storage and road salt reduction practices
• Dam safety rehabilitation and removal
• Fish and wildlife habitat restoration, including aquatic, terrestrial, and marine systems
• Nonpoint source pollution abatement
• Resiliency improvements in flood-prone areas

The funding report details investments and project impacts from April 1, 2024, through March 31, 2025, including metrics for the Clean Water and Drinking Water State Revolving Funds. The State Revolving Funds are New York's primary tools for advancing its clean water goals, providing low-cost financing and grants to local governments.

The report also breaks down the $1.1 billion in grants delivered through the State's range of water infrastructure funding programs, including:

• Water Infrastructure Improvement and Intermunicipal Water Infrastructure Grants
• Water Quality Improvement Projects Program
• Lead Infrastructure Forgiveness and Transformation Grants
• Septic System Replacement Fund
• Green Resiliency Grants
• Community Development Block Grant
• Green Innovation Grant Program
• Concentrated Animal Feeding Operation Enhanced Nutrient and Methane Management Program
• Local Government Efficiency and Appalachian and Northern Border Regional Commissions
• Wastewater Infrastructure Engineering Planning Grants
• Non-Agricultural Nonpoint Source Planning and MS4 Mapping Grants
• Clean Vessel Assistance Program

Complementing the $3.8 billion for water quality projects, DHSES provided an additional $647 million in FEMA grants for disaster recovery related to flooding, storms, and snow in SFY 2025. The Public Assistance and Hazard Mitigation Assistance programs provide critical resources to help flood-stricken municipalities reduce vulnerability to severe storms. These federal programs support New York's broader clean water and infrastructure goals by helping communities integrate resiliency into local planning, facility upgrades, and community-wide risk reduction strategies.

EFC leads the Community Assistance Teams initiative that brings partner agencies together to help local governments access funding and to further Governor Hochul's commitment to water infrastructure improvement in small, rural, and disadvantaged communities. DEC and DOH also offer free technical assistance to municipalities to protect drinking water supplies through the Drinking Water Source Protection Program, among numerous other programs and initiatives to manage and protect water quality statewide.

Environmental Facilities Corporation President and CEO Maureen A. Coleman said, "Water infrastructure work often happens out of sight, but its benefits impact every person in the State. This $3.8 billion investment is strengthening our communities, improving reliability, and setting a national standard for smart water investment. It also underscores Governor Hochul's and EFC's commitment to affordability, making sure communities can access safe, reliable water without facing prohibitive costs."

Department of Environmental Conservation Commissioner Amanda Lefton said, "Under Governor Hochul's leadership, New York continues to prioritize investments to ensure all communities have access to clean water and resilient infrastructure. A record-high $3.8 billion in funding in 2025 allowed communities statewide to address and meet critical infrastructure needs, protect the environment, and promote good-paying jobs. These multi-agency investments, including funds from the Clean Water, Clean Air and Green Jobs Environmental Bond Act, are making a positive and lasting impact in our great state."

New York State Health Commissioner Dr. James McDonald said, "This report highlights Governor Hochul's unwavering commitment to providing safe drinking water to communities through historic investments that make critical drinking water infrastructure projects affordable. The Department of Health's Bureau of Water Supply Protection will continue to partner with our State and local partners to provide assistance to communities that will protect public health for years to come."

Secretary of State Walter T. Mosley said, "Governor Hochul's nation-leading investment in clean water infrastructure is helping communities large and small to undertake projects that are vital to public health, quality of life, environmental protection, and economic development. The Governor's $1.1 billion in targeted grants are providing much-needed financial support to municipalities and public authorities for projects that are vital to economic development and community growth."

Division of Homes and Community Renewal Commissioner RuthAnneVisnauskas said, "HCR's Office of Community Renewal awarded more than $25 million through the NYS Community Development Block Grant program to replace aging water and sewer lines, as well as upgrade public water infrastructure and wastewater treatment plants, which benefitted low-to-moderate income residents in counties, cities, towns and villages across New York. We are honored to join our state partners in contributing more than $1 billion in grants to make public water and sewer service safe, affordable and reliable - in turn making New York's communities healthy places for families to live and thrive."

Department of Agriculture and Markets Commissioner Richard A. Ball said, "Under Governor Hochul's leadership, New York agriculture is at the table when it comes to the preservation of our natural resources, including protecting our waterways statewide. It's incredible to see $3.8 billion dedicated to the State's clean water goals in just one fiscal year, highlighting New York's commitment to these critical projects. I'm proud that some of the dollars invested will not only ensure the health of our environment but will also help farms remain competitive, profitable, and sustainable."

Division of Homeland Security and Emergency Services Commissioner Jackie Bray said, "With extreme weather continuing to grow in both frequency and intensity, ensuring the resiliency of water systems is vital to the long term health of communities. Thanks to the leadership of Governor Hochul, communities throughout the state have been able to strengthen their infrastructure and implement mitigation measures to be able to withstand whatever Mother Nature sends our way."

Nature Conservancy of New York Executive Director Bill Ulfelder said, "The Nature Conservancy commends Governor Hochul for taking a whole-of-government approach to upgrading water infrastructure and investing $3.8 billion in clean water projects throughout the state. These projects safeguard clean drinking water, reduce costs for families and businesses, and prevent pollution from reaching our bays, harbors, lakes, and rivers. We are grateful for the leadership of Governor Hochul and members of the New York State Senate and Assembly for securing historic funding for New York communities through the Environmental Protection Fund, Clean Water Infrastructure Act, and Environmental Bond Act."

Citizens Campaign for the Environment Executive Director Adrienne Esposito said, "New York is a vast state with enormous infrastructure needs. From Montauk to Medina, municipalities have aging wastewater and drinking water facilities in need of significant upgrades and repairs. Funding these critical upgrades represents an investment of funds, not an expenditure of funds. One of the most important roles of government is to ensure the health and safety of the public, and clean water programs do just that. The public strongly supports this program because it's successful in keeping our drinking water clean and affordable. We are thrilled with the progress New York is making to protect our water and public health. We congratulate Governor Hochul and the NYS Legislature in working collaboratively to accomplish such a monumental goal."

New York State Association of Counties Executive Director Stephen J. Acquario said, "These historic investments are helping local governments meet their responsibility to deliver safe drinking water and reliable wastewater services in communities across New York. Governor Hochul's constant commitment to water infrastructure needs enable local governments to modernize aging systems, address emerging challenges, and protect public health without placing unsustainable burdens on local taxpayers. We value this strong partnership with the State and look forward to continuing to work together to ensure clean, affordable water for all New Yorkers."

New York Council of Mayors Executive Director Barbara Van Epps said, "NYCOM applauds Governor Hochul for her continued investment in water infrastructure. Clean and safe water is a top priority for our members, and these grants play a critical role in supporting local officials in their efforts, while easing costs for taxpayers. NYCOM looks forward to continuing to work with the Governor and the State Legislature to strengthen public health, community resilience and quality of life across New York State."

New York American Water Works Association Executive Director Jenny Ingrao-Aman said, "This level of investment in drinking water infrastructure is truly unprecedented and provides critical support to the public water utilities that deliver safe, reliable water to New Yorkers every day. Governor Hochul's sustained focus on safe, clean, and affordable drinking water is remarkable, and these investments give utilities the resources they need to modernize aging infrastructure, address emerging contaminants, strengthen resiliency, and continue protecting public health in communities across the state."

New York's Commitment to Water Quality
New York State continues to increase its nation-leading investments in water infrastructure. 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, including $453 million in grants awarded by EFC in December 2025. Any community needing assistance with water infrastructure projects is encouraged to contact EFC.

Contact the Governor's Press Office