Governor Hochul Announces $250 Million to Make Local Water Infrastructure Projects Affordable Across New York State

Governor Hochul Announces $250 Million to Make Local Water Infrastructure Projects Affordable Across New York State

Governor Kathy Hochul today announced $250 million to help communities statewide afford 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, treating harmful emerging contaminants, mitigating flooding, 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.

"Communities are working hard to upgrade aging water infrastructure and protect public health, and I'm committed to providing them with the resources they need to succeed," Governor Hochul said. "With this $250 million investment, we're making vital projects affordable and ensuring New Yorkers can trust the water they rely on every day."

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.

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.
• Governor Hochul's Lead Infrastructure Forgiveness and Transformation (LIFT) grant program: Loan forgiveness grants to help communities pay for lead service line replacement by covering costs not fully paid for by federal grants. The Board approved these grants for Ogdensburg, Poughkeepsie, and Rochester.
• The State's Water Infrastructure Improvement and Intermunicipal Grants: Proven vehicles for affordability that have saved over $7.2 billion for ratepayers statewide since 2017.
• Governor Hochul's Green Resiliency Grants: Launched in 2023 to protect New Yorkers from the impacts of extreme weather. Two resiliency projects in New York City were approved to receive a combined $20 million, funded by the Clean Water, Clean Air, and Green Jobs Environmental Bond Act of 2022.

Combining federal and State funding ensures every dollar goes further in modernizing aging infrastructure across the State protecting public health and the environment.

Environmental Facilities Corporation President & CEO Maureen A. Coleman said, "This scale of investment underscores the irrefutable impact of the most efficient and effective water infrastructure investment programs in the nation. This week, EFC opened two grant programs that will provide an additional $5.5 million to improve water quality and strengthen cybersecurity, advancing Governor Hochul's continued commitment to affordable clean water, protecting New Yorkers, and supporting municipalities."

New York State Department of Environmental Conservation Commissioner Amanda Lefton said, "Governor Hochul's historic investments in water infrastructure are advancing projects vital to cleaner water and safer communities statewide. The $250 million approved today is helping local governments replace lead service lines, supporting critical wastewater and drinking water infrastructure, and will be instrumental to protecting public health and our natural environment."

New York State Health Commissioner Dr. James McDonald said, "Governor Hochul is committed to clean water and healthy communities without overburdening ratepayers. This latest round of funding helps communities make critical improvements to their drinking water systems including the removal of lead service lines and addressing emerging contaminants. The Department's Bureau of Water Supply Protection will continue to help municipalities every step of the way throughout these projects to protect public health."

New York Secretary of State Walter T. Mosley said, "New York State continues to be a leader in upgrading drinking water infrastructure, a major priority for healthy, resilient communities. Governor Hochul's financial assistance of $250 million will provide communities with access to resources that will strengthen resilience for many neighborhoods so they can combat climate change, offer clean drinking water and advance green jobs while building stronger towns and villages for generations to come."

Funding was approved for projects in the following regions:

Finger Lakes

• City of Rochester, $38 million in State and federal grants and interest-free financing, including a loan forgiveness LIFT grant, for the replacement of 3,245 lead service lines.
• Town of Victor, $702,750 State grant for pump station improvements.

Long Island

• Village of Hempstead, $23 million in State and federal grants and interest-free financing for the construction of new sewer piping to replace an aged and undersized wastewater collection system. The State grant is funded by the Environmental Bond Act.
• Village of Williston Park, $5 million federal grant for PFAS treatment at Well Nos. 1A and 2 at the Syracuse Street facility.

Hudson Valley

• City of Poughkeepsie, $31.6 million in State grant and interest-free financing, including loan forgiveness LIFT grants, for two projects to replace a total of 766 lead service lines. EFC previously approved an additional $2.9 million in federal grants to inventory lead service lines.
• Westchester Joint Water Works, $30 million State grant for construction of the Rye Lake Water Filtration plant.

Mohawk Valley

• Village of Boonville, $7 million State grant for the planning, design, and construction of improvements to the Mill Creek interceptor and wastewater treatment plant. EFC previously provided an Engineering Planning Grant to help the Village advance this project.

New York City

• Two State grants totaling $20 million for the construction of a new stormwater conveyance system within the Tibbetts Brook watershed in the Bronx, and a recirculation, filtration, and adaptive control system at Central Park's North End waterbodies in Manhattan. The grants are funded by the Environmental Bond Act.

North Country

• Clinton County, $5 million federal grant for the creation of the Morrisonville 2 Water District and installation of approximately 9,350 linear feet of drinking water main, associated fittings, valving, hydrants, and meters. This project will provide public water to 43 properties and an existing mobile home park along Sand Road that currently rely on private wells contaminated with PFAS.
• Village of Constableville, $12.2 million in federal grant and interest-free financing for a new drinking water transmission main from existing spring sources to the spring storage basin, and then to the filtration plant.
• City of Ogdensburg, $1.8 million in State grant and interest-free financing, including a loan forgiveness LIFT grant, for exploratory work required to create a drinking water service line material inventory, with an emphasis on locating lead galvanized pipe. EFC previously approved an additional $2 million federal grant to inventory lead service lines.
• Village of Saranac Lake, $44 million in federal grant and low-cost financing for the planning, design, and construction of improvements to the collection system and water pollution control plant. EFC previously provided an Engineering Planning Grant to help the Village advance this project.
• Town of Westport, $182,558 State grant for the planning, design, and construction of sanitary sewer improvements. EFC previously provided an Engineering Planning Grant to help the Town advance this project.

Southern Tier

• Village of Bainbridge, $7.5 million in State grant and low-cost financing for the replacement of approximately 13,000 linear feet of water main and associated appurtenances, replacement of Well No. 1 and backup power installation for Well Nos. 1 and 3.
• Town of Erwin, $955,127 State grant for the installation of a new drinking water well, the addition of chemical feed systems for chlorine gas, blended phosphates, and fluoride, and the construction of related appurtenances.
• Town of Hancock, $3 million in federal grant and interest-free financing for the creation of the Fishs Eddy Water System.
• Town of Newfield, $7.1 million in State and federal grants and low-cost financing for the replacement of aged asbestos cement drinking water mains via installation of approximately 11,780 linear feet of water main with associated appurtenances.

Western New York

• Village of Andover, $3 million in interest-free financing for a new ultrafiltration drinking water treatment system.
• Village of Portville, $7 million in State grant and interest-free financing for wastewater treatment plant upgrades.

Refinancing Completed Projects Will Achieve Long-Term Debt Service Savings for Communities Across the State
The Board also took action to help ensure continued, long-term affordability of existing drinking water and sewer projects. The Board approved a $456 million bond sale to refinance projects and provide new money for any remaining project costs on behalf of 18 recipients.

Proceeds of the bond sale will also be used to refund certain prior bonds. Refundings are part of EFC's proactive financial management to ensure projects remain cost-effective over the life of the financing. Savings that EFC realizes from the refunding are used to reduce debt service payments for municipalities on existing long-term financings. Based on current market conditions, the transaction is projected to save an estimated $21.3 million for local ratepayers. The sale is expected to close this summer.

Senator Charles Schumer said, "Thanks to my Bipartisan Infrastructure Investment and Jobs Law, we're sending millions of federal dollars flowing to upgrade New York's water infrastructure from Rochester to the North Country to Poughkeepsie. This major federal investment will ensure families have safe drinking water, and that our beautiful waterways remain free from sewer overflow, all while creating a steady stream of jobs, jobs, jobs. I am proud to deliver this major funding and will continue 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."

Representative Thomas Suozzi said, "This funding, which came from the Bipartisan Infrastructure Law, will help local communities like Williston Park do the important work necessary to keep drinking water safe and clean without burdening local taxpayers. As a member of the bipartisan Problem Solvers Caucus, I helped negotiate and pass the Bipartisan Infrastructure Law to deliver investments like these."

Representative Joe Morelle said, "No New Yorker should have to wonder if their water is safe to drink. I'm grateful to Governor Hochul for her continued commitment to strengthening water infrastructure and protecting public health in communities across our state. I look forward to continuing our partnership to ensure every New Yorker can rely on safe, affordable water."

Representative Josh Riley said, "Too many Upstate communities are dealing with aging water systems and rising costs at the same time. That's why this funding matters. I thank Governor Hochul for her support, and I'm glad to see communities in our part of the state, including Bainbridge, Hancock, and Newfield, getting help to make critical upgrades, protect clean drinking water, and keep these projects affordable for local families."

Manhattan Borough President Brad Hoylman-Sigal said, "I'm grateful to Governor Hochul for continuing to invest in the water infrastructure that New Yorkers depend on every day. Manhattan's aging systems require sustained attention to ensure our drinking water remains safe, our waterways are protected, and our neighborhoods are resilient in the face of extreme weather. Investments like the improvements to Central Park's waterbodies and broader stormwater infrastructure will help safeguard public health and strengthen our borough for generations to come."

Bronx Borough President Vanessa L. Gibson said, "This $10 million investment in constructing a new stormwater conveyance system within the Tibbetts Brook watershed is essential to advancing long-overdue environmental resilience in our borough. We are grateful to Governor Kathy Hochul for her support of this important project and commitment to strengthening our state`s water infrastructure."

New York City Councilmember Eric Dinowitz said, "This is a transformational investment for the Bronx and the Daylighting of Tibbetts Brook. I've worked closely with Governor Hochul, city agencies, local and citywide community organizations, and leaders across multiple administrations to advance this project because our neighborhoods deserve modern infrastructure that protects us from flooding and protects our environment. I'm grateful to Governor Hochul for delivering this monumental investment. This project represents one of the most significant environmental improvements our borough and the city at-large has seen in generations, and it will create a more resilient and healthier future for us all."

City of Poughkeepsie Mayor Yvonne Flowers said, "On behalf of the City of Poughkeepsie, we are grateful to Governor Kathy Hochul and our state partners for this significant investment. Replacing aging lead service lines is an important step toward strengthening our water infrastructure and protecting public health. This funding will help ensure our residents have access to safe, reliable drinking water while supporting the city's continued progress and long-term sustainability."

City of Rochester Mayor Malik D. Evans said, "I am grateful to Governor Kathy Hochul for providing these critical funds and commend her for her commitment to making sure all New Yorkers have access to lead-free drinking water. This funding will advance our goal to remove all lead service lines from Rochester's drinking water system by 2030."

Town of Hancock Supervisor Jerry Vernold said, "The awarding of this grant is great news for the Town of Hancock and especially for the residents of Fish's Eddy who are in dire need of fresh water. It will go a long way toward establishing a new water system for them. Thank you, Governor Hochul."

Town of Victor Supervisor Jack Marren said, "The Town of Victor is honored to receive a $700,000 grant through the New York State Water Infrastructure Improvement program (WIIA). This funding supports the modernization of two 30-year-old pump stations, replacing aging components with high-efficiency technology to expand capacity and ensure long-term system reliability for our community."

Village of Hempstead Mayor Waylyn Hobbs said, "We know that access to clean water is not a luxury, but it is a necessity. The Village of Hempstead is grateful to receive $23 million in state and federal funding to strengthen our water infrastructure. These investments will help ensure that the residents of our village continue to have access to clean, safe, and reliable drinking water. Upgrading our aging water system, replacing outdated pipes, and improving the overall system is critical to protecting public health. As the largest village in New York State, we must continue the progress we have started and make the investments necessary to serve our residents for generations to come. I am thankful for the strong leadership of our Governor."

Village of Portville Mayor Anthony Evans said, "This is such great news! Our long overdue and much anticipated infrastructure project has been years in the making and now that some construction has begun, we are absolutely delighted to receive this news from the Governor's office regarding additional funding that will move us closer to the finish line. With double-digit inflation, COVID shutdowns, shrinking resources and tax caps, municipalities have really been under the gun for the past few years. This extra help from Albany is much needed and appreciated."

Village of Saranac Lake Mayor Jimmy Williams said, "On behalf of the Village of Saranac Lake, I would like to offer our sincere gratitude to Governor Hochul and the EFC Board for the award of $44 million dollars of grants and low cost financing to improve our water and sewer infrastructure. This money helps us make a huge stride toward keeping Saranac Lake affordable for families, and it is crucial to the survival of our multigenerational community.

Village of Williston Park Mayor Paul Ehrbar said, "On behalf of the residents of the Village of Williston Park, I thank Governor Hochul, along with the State Assembly and State Senate for providing $5 million Federal grants for PFAS treatment at our Well Nos. 1A and 2. The costs connected to this project are extremely high and for a small Village Water Department this financial aid provides ratepayers limited relief along with improved water quality."

Village of Boonville Mayor Judith Dellerba said, "On behalf of the Village of Boonville, I want to sincerely thank Governor Hochul for this incredible investment in our community. Improvements to the Mill Creek interceptor and our wastewater treatment plant have been needed for a long time, and this funding makes it possible for us to finally move these critical upgrades forward. This is a huge win for Boonville and will make a lasting difference for our infrastructure, our environment, and our community's future."

Westchester County Executive Ken Jenkins said, "Investing in safe, reliable drinking water infrastructure is one of the most important things we can do to protect public health and support our communities for generations to come. I want to thank Governor Hochul for recognizing the importance of this work and for helping make critical projects like the $30 million investment in the Westchester Joint Water Works Rye Lake Water Filtration Plant possible. Westchester County is proud to partner with New York State to deliver the infrastructure our communities need today and for the future."

Nation-Leading Investments in Water Infrastructure
New York State continues to increase its historic investments in water infrastructure. Governor Hochul set the national standard with a transformational $3.75 billion water infrastructure investment plan, which would bring total clean water investments to $10 billion since 2017.

EFC is currently accepting applications for $5.5 million in grants through Wastewater Infrastructure Engineering Planning Grants and SECURE cybersecurity grant program. Municipalities and eligible entities can find more information and apply on EFC's website. The Community Assistance Teams are available to provide no-cost, 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.

Contact the Governor's Press Office