Governor Hochul Announces $113 Million to Make Local Water Infrastructure Projects Affordable Across New York State

Governor Kathy Hochul today announced $113 million to help communities statewide afford water and sewer infrastructure improvement projects. The Environmental Facilities Corporation (EFC) Board of Directors approved low-cost financing and State and federal grants that empower local governments to advance crucial upgrades - such as treating harmful emerging contaminants in drinking water and modernizing 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.

"Safe, reliable water infrastructure is essential to healthy communities and a strong economy, and New York is continuing to lead with historic investments statewide," Governor Hochul said. "We're helping communities make needed water infrastructure improvements that improve quality of life while protecting New Yorkers from rising costs."

EFC's Board approved low-cost financing and previously announced grants through New York's premier water infrastructure investment programs that help communities avoid costly rate increases. Board approval is a milestone in the funding process and allows communities to enter into agreements and access these funds for their projects.

The approved funding includes nearly $62 million in State-directed federal grant and low-cost financing to help Albany County modernize the 1970s era North and South Wastewater Treatment Plants. This funding is in addition to the $25 million State grant awarded in December to further minimize costs for local ratepayers. Comprehensive upgrades will modernize operations, improve emissions and odors and protect water quality in the Hudson River.

Funding is provided through:

• The Clean Water and Drinking Water State Revolving Funds: A mix of State and federal dollars that delivers over $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.
• The State's Water Infrastructure Improvement Grants: Proven vehicles for affordability that have saved over $7.2 billion for ratepayers statewide since 2015.

Combining federal and State 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 affordably repair, rehabilitate and modernize aging infrastructure in the future.

Environmental Facilities Corporation President & CEO Maureen A. Coleman said, "The project funding announced today demonstrates how New York's historic investments are helping communities advance critical upgrades while minimizing costs for ratepayers. Governor Hochul's $3.75 billion water infrastructure investment in the Executive Budget builds on New York's tremendous progress modernizing critical systems and expands support for communities working to keep projects affordable."

New York State Department of Environmental Conservation Commissioner Amanda Lefton said, "The approval of $113 million in grant funding and low-cost financing today highlights Governor Hochul's continued focus on affordable clean water, the reduction of emerging contaminants and critical sewer infrastructure projects. This latest economic investment assists municipalities and government partners like Albany County to make much needed water infrastructure upgrades to support healthy and sustainable communities."

New York State Health Commissioner Dr. James McDonald said, "We thank Governor Hochul for enabling communities to affordably make critical upgrades to their infrastructure that will protect clean drinking water. The Department of Health's Bureau of Water Supply Protection will continue to work with municipalities to ensure they have the resources needed to tackle emerging contaminants, eliminate lead and safeguard public health now and well into the future."

New York Secretary of State Walter T. Mosley said, "Governor Hochul's record investments in clean, affordable water infrastructure continue to set a course for resilient, sustainable and healthy communities, while easing the financial burden on ratepayers and municipalities, and creating good jobs at the same time. The approval of $113 million by the Environmental Facilities Corporation Board will help communities across New York upgrade key drinking and wastewater infrastructure to promote healthy and economically sustainable towns, cities and villages across the state."

Albany County Executive Daniel P. McCoy said, "Keeping our wastewater infrastructure up to date is one of those investments people may not always see, but they rely on every single day. That is why Albany County has been working with partners over the last four and a half years to upgrade and modernize the North and South Wastewater Treatment Plants. I am grateful for the partnership and support from Governor Hochul that ensures our sewer treatment system is safer, more resilient and prepared to meet the future needs of our community."

Funding was approved for projects in the following regions:

Capital Region

• Albany County, $61.5 million in federal grant and low-cost financing for the planning, design and construction of sludge processing improvements at the North and South Wastewater Treatment Plants.
• Village of Valatie, $11.8 million in State and federal grants and low-cost financing for the construction of two granular activated carbon adsorption vessels to remove perfluoroalkyl substances from four groundwater wells.

Central New York

• Town of Onondaga, $1.7 million State grant for the formation of a new water district and construction of approximately 15,000 linear feet of new water main, including water services and meters, fire hydrants, valves and other associated appurtenances.

Finger Lakes

• Town of Gorham, $11.8 million in low-cost financing for upgrading the existing water treatment facility to an ultrafiltration plant with granular activated carbon contactors to address harmful algal blooms, PFOA/PFOS, and high turbidity.
• Town of Kendall, $4.7 million in State grant and low-cost financing for the construction of a new low-pressure sewer and collection system to serve portions of the Towns of Kendall and Hamlin.
• Village of Penn Yan, $83,625 federal grant for the construction of disinfection improvements at the wastewater treatment plant.

Hudson Valley

• Village of Ossining, $5 million State grant for the construction of the new Indian Brook Water Treatment Plan to replace the existing plant. This grant is funded by the Clean Water, Clean Air and Green Jobs Environmental Bond Act of 2022.

Long Island

• Town of East Hampton, $1.3 million federal grant to investigate and address PFAS/PFOS groundwater contamination at the East Hampton Airport.
• South Huntington Water District, $5 million federal grant to install an advanced oxidation process treatment system for the removal of 1,4-dioxane from Well No. 15.

Southern Tier

• Town of Ostelic, $6.4 million in federal grant and interest-free financing for replacement of 7,000 linear feet of watermain, 100 water meters, storage tank improvements, installation of a new Well No. 4 and upgrades and treatment improvements for Well Nos. 3 and 4.

Western New York

• Village of Depew, $1.9 millionin State grant and low-cost financing for the design and construction of sanitary sewer improvements to reduce inflow and infiltration in the collection system.
• Town of Dunkirk, $1.4 million State grant for the replacement of approximately 13,000 linear feet of aged water mains and appurtenances including hydrants, valves and service meters in the Shorewood Water District.
• Village of South Dayton, $98,100 State grant for the design and construction of improvements to the wastewater treatment plant and sanitary collection system.

Representative Tim Kennedy said, "Our access to freshwater is one of Western New York's greatest treasures. I've fought for years for funding to clean up our waterways and leave a better environment for future generations. Our communities and residents are better served when all levels of government work together towards a shared vision. This funding will ensure cleaner water and will ease the burden on local taxpayers."

State Senator Rachel May said, "Water infrastructure is one of the most important investments we can make in our communities. Across Central New York and much of the state, aging infrastructure needs significant upgrades. That's why this funding for the Town of Onondaga is so important. It will help improve reliability, strengthen safety and support residents for years to come. Thank you to Governor Hochul for continuing to invest in modern water infrastructure and helping build a stronger future for Central New York."

State Senator Pete Harckham said, "This major investment from the state, which includes $5 million for Ossining's new water treatment plant, 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."

State Senator Michelle Hinchey said, "New York has some of the oldest water infrastructure in the country, and too often modernization costs are impossible for small communities to manage alone, which makes state support critical to ensuring access to clean and safe water for New Yorkers. I'm proud to have helped secure the funding that made these water infrastructure improvements possible in Valatie, and I thank Governor Hochul for her partnership delivering this investment."

State Senator Patricia Fahy said, "For too long, northern and southern Albany residents have been plagued with the smell of rotting sewage and sludge present at Albany County's North and South Wastewater Treatment Plants, which has led to a lower quality of life for nearby homeowners and tenants. By providing $62 million in needed funding to address this growing environmental injustice, we're giving Albany County the tools it needs to finally make the improvements necessary. I'm proud that we were able to secure this investment to begin finally tackling the persistent and prevalent smell that continues to impact our neighbors and nearby communities."

State Senator April Baskin said, "Reliable water infrastructure is essential to protecting public health and building strong communities for generations to come. This investment in the Village of Depew will improve critical sewer infrastructure without burdening local taxpayers. I'm grateful to Governor Hochul for continuing to put state funds toward projects that improve quality of life for Western New Yorkers."

Assemblymember John T. McDonald III, RPh said: "I am pleased to have supported the funding being awarded to the Albany County Sewer District. While infrastructure investments such as these may not always generate headlines, the consequences of aging and deteriorating facilities are felt directly by residents and communities when they are left unaddressed. This funding is another important example of public resources being used to support our local governing districts as they move critical projects forward, improving quality of life for residents, protecting the environment and strengthening our communities."

Assemblymember Steve Stern said, "I applaud Governor Hochul and the Environmental Facilities Corporation for securing a $5 million Federal Grant for the South Huntington Water District. This critical funding will enable the district to address the threat posed by forever chemicals and emerging contaminants by installation of an advanced oxidation process treatment system for the removal of 1,4-dioxane. Protection of our sole source aquifer and our precious drinking water is a critical priority, and this grant is an important step in ensuring that our water is safe and pure."

Assemblymember Pamela J. Hunter said, "New York's continued investment in water infrastructure is critical to protecting public health, supporting responsible growth, and helping local communities avoid placing overwhelming costs on taxpayers. I'm especially pleased to see funding included for the Town of Onondaga to help strengthen and expand critical water infrastructure for local residents."

Village of Penn Yan Mayor Patricia Christensen said, "Completion of the wastewater treatment plant disinfection improvement project represents a major investment in the treatment system. We would like to say thank you to Governor Hochul and New York State for the funds to lessen the financial impact on our rate payers while completing critical infrastructure improvements."

Mayor of the Village of Depew, Kevin J. Peterson said, "I am incredibly grateful to the State of New York and Governor Kathy Hochul for recognizing the importance of investing in local infrastructure and supporting communities like the Village of Depew. This $1.9 million in State grant funding and low-cost financing will allow the Village to move forward with critical sanitary sewer improvements that will reduce inflow and infiltration within our collection system, strengthen the reliability of our infrastructure, and help protect our environment for future generations. These investments not only improve essential public services but also help lessen the financial burden on our residents and taxpayers. On behalf of the taxpayers of the Village of Depew, I sincerely thank Governor Hochul and our State partners for their continued commitment to strengthening communities across New York."

Village of Ossining Mayor Rika Levin said, "This $5 million investment in the new Indian Brook Water Treatment Plant is an important step toward strengthening Ossining's water infrastructure and ensuring reliable, high-quality drinking water for our residents. Replacing and modernizing this aging facility will improve long-term resiliency, incorporate advanced treatment technology and help position our community for future growth. We appreciate Governor Hochul and the Environmental Facilities Corporation for supporting projects that help local governments make critical infrastructure improvements while keeping affordability in mind for ratepayers."

Town of Kendall Supervisor Tony Cammarata said, "The Towns of Kendall and Hamlin, after Lake Ontario's high-water levels in 2019, needed a low-pressure sewer and collection system for our respective residents along the lake front. A vision is becoming a reality thanks to New York State for their support with construction funding and now with this additional $4.7-million-dollar grant and low-cost financing, affording Sewer District #1 residents, protection from reoccurring Lake Ontario high water levels."

Town of East Hampton Supervisor Kathee Burke-Gonzalez said, "We are grateful to Governor Hochul for providing funding that will help the Town continue investigating and addressing contamination at the East Hampton Town Airport without shifting that cost onto our residents. The Town did not cause this problem. The polluters who did have not stepped up to do what's right, and we will continue to use every available tool, including litigation, to protect our groundwater, defend our taxpayers and hold them accountable."

Nation-Leading Investments in Water Infrastructure

New York State continues to increase its historic investments in water infrastructure. The 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.

EFC is currently accepting applications for $78 million in grants through the Green Innovation, Green Resiliency, and Wastewater Infrastructure Engineering Planning grant programs. Municipalities and eligible entities can find more information and apply on EFC's website. The Community Assistance Teams are available to provide one-on-one consultations to help municipalities understand funding options and prepare strong applications.

New Yorkers can track projects benefiting from EFC's investments using the interactive project impact dashboard.