New York State Department of Financial Services

06/18/2026 | Press release | Distributed by Public on 06/18/2026 11:47

Governor Hochul Announces $74 Million to Make Local Water Infrastructure Projects Affordable Across New York State

Governor Kathy Hochul today announced $74 million to make it easier for communities statewide to 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 modernize 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.

"New York is investing billions in water infrastructure because protecting public health and supporting local communities go hand-in-hand," Governor Hochul said. "These investments will help municipalities modernize aging systems and deliver the clean, reliable and affordable water that New Yorkers expect and deserve."

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. Projects that reach the Board approval stage have completed environmental reviews and satisfied program requirements.

Funding is provided through:

  • The Clean Water and Drinking Water State Revolving Funds: A mix of State and federal dollars that deliver over $1 billion in low-cost financing and grants annually to New York communities. The federal Infrastructure Investment and Jobs Act significantly bolstered the State Revolving Funds since 2022, driving critical investments to help modernize New York's water and sewer infrastructure. This additional funding ceases this year.
  • The State's Water Infrastructure Improvement Grants: Proven vehicles for affordability that have saved ratepayers over $8.3 billion statewide since 2015. EFC is currently accepting applications for $425 million through these programs, the first installment of the Governor's bold $3.75 billion clean water investment plan delivered in the FY 2027 Enacted State Budget.

Combining State and federal 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 and CEO Maureen A. Coleman said, "Last week, Governor Hochul announced the availability of $425 million in state water infrastructure grants to help communities tackle critical local needs. Today's Board approvals demonstrate what these investments make possible -communities advancing projects that improve water quality and protect public health while keeping costs affordable for residents. EFC is proud to help turn the Governor's commitment into tangible results in communities across New York State."

New York State Department of Environmental Conservation Commissioner Amanda Lefton said, "The approval of $74 million in grant funding and low-cost financing today highlights Governor Hochul's focus on clean water for all New Yorkers and our environment. This latest economic investment combining State and federal funds assists municipalities and provides countless benefits to residents by supporting the upgrade of aging systems in need of repair or replacement."

State Health Commissioner Dr. James McDonald said, "Clean, reliable water is essential to the health and well-being of every New Yorker. These investments will help communities protect drinking water and improve water quality. I thank Governor Hochul for her continued commitment to strengthening public health through investments in safe and affordable water systems across New York State."

New York Secretary of State Walter T. Mosley said, "Reliable and affordable water infrastructure is the foundation on which sustainable communities are built. These funding commitments for clean water infrastructure underscore the Governor's ongoing commitment to building healthy communities around the state by modernizing water and sewer systems that are critical for sustainable community growth and development. The $74 million in funding approved today by the Environmental Facilities Corporation will help spur economic growth and jobs all while protecting public health and making New York more affordable well into the future."

Funding was approved for projects in the following regions:

Capital Region

  • Village of Athens, $1.8 million in State grant and low-cost financing for the planning, design, and construction of sanitary sewer improvements to address inflow and infiltration and protect water quality in the Hudson River. The State grant is funded by the Clean Water, Clean Air, and Green Jobs Environmental Bond Act of 2022.
  • City of Troy, $15.6 million in federal grant and low-cost financing for the installation of a new corrosion control treatment system and replacement of the water treatment plant's existing lime feed system. This project will help improve water quality and system reliability.

Central New York

  • Town of Lenox, $660,000 State grant for the installation of 7,700 linear feet of drinking water main and associated appurtenances, and a connection to Onondaga County Water Authority to serve approximately 36 residences currently on private wells in the new Water District No. 14.
  • Town of Skaneateles, $4.4 million State grant for the installation of 15,700 linear feet of drinking water main and appurtenances, and the construction of a 150,000-gallon elevated storage tank and a new pump station. The project will improve system reliability for existing users and provide new users with a reliable source of municipal water.

Finger Lakes

  • Village of Honeoye Falls, $17.8 million in State grant and low-cost financing for the planning and design of improvements to the wastewater treatment plant originally constructed in 1930. The project will build on continued upgrades to improve water quality in Honeoye Creek.

Mohawk Valley

  • Oneida County, $8.1 million in low-cost financing for the planning, design, and construction of an ultraviolet disinfection system at the water pollution control plant to improve water quality in the Mohawk River.

North Country

  • Town of Wilna, $154,527 State grant for the planning, design, and construction of improvements at the wastewater treatment facility that serves the Hamlet of Herrings. The project will protect the water quality of the Black River.

Southern Tier

  • Village of Endicott, $23.1 million in State and federal grant and interest-free financing for the design and construction of improvements at the wastewater treatment plant that serves the Village and portions of the Towns of Union and Vestal. The project will improve water quality in the Susquehanna River, a tributary to the Chesapeake Bay.
  • Village of Margaretville, $1.5 million in State grant and low-cost financing for the replacement of an aged water storage tank with a new 80,000-gallon tank, replacement of water service meters, and upgrades to the water system telemetry and controls system.

Western New York

  • Town of Alden, $532,560 State grant for the formation of Cayuga Creek Water District, including installation of 6,500 linear feet of water main, hydrants, meters, and appurtenances. The project will provide safe, reliable water to residents on Cayuga Creek Road and Three Rod Road who currently use failing private wells.

U.S. Senator Charles Schumer said, "These water infrastructure projects will create jobs and support communities across New York, from the Capital Region to the Southern Tier. Access to clean drinking water and safe modern sewer infrastructure is fundamental to public health and boosting economic growth. I am proud to have secured millions in federal funding through the Clean Water and Drinking Water State Revolving Funds so New York communities can upgrade their water infrastructure systems. I will always fight to keep New York's drinking water clean, sewer infrastructure strong, and our communities safe and healthy."

U.S. Representative Paul Tonko said, "Families here in our Capital Region and beyond deserve access to clean, safe drinking water. But for too long, our hidden but critical water and sewer infrastructure has been left unaddressed, leaving too many New Yorkers exposed to the negative health effects of unsafe drinking water. Today's major announcement will help communities across our state - including the City of Troy - finance the critical infrastructure improvements that will help residents live healthier lives. I've been proud throughout my time in Congress to fight for full federal funding for our Clean Water and Drinking Water State Revolving Funds, and I'm grateful to Governor Hochul for helping these crucial investments reach the communities that need them most."

U.S. Representative Josh Riley said, "Everyone should be able to trust that the water coming out of their tap is clean and safe. I was proud to work with our state and local leaders to bring home this funding which will help Upstate New York communities upgrade aging infrastructure without raising costs, support good-paying jobs, and keep our families healthy."

State Senator Michelle Hinchey said, "Across the Capital Region, and much of the state, aging and deteriorating water infrastructure requires significant upgrades, and local governments need state support to fix their systems. I'm proud to have helped secure the funding that will allow Athens to move these water infrastructure improvements forward. Not only will they improve essential public services but also help lessen the financial burden on local residents and taxpayers. I thank Governor Hochul for her partnership in providing this investment."

State Senator Lea Webb said, "Access to clean water is an essential need for our communities. We still experience significant challenges with this vital service right here in the Village of Endicott, where residents often have brown water, receive boil water advisories, and more. This investment from the state of $23.1 million for the Village of Endicott will help support the efforts to improve wastewater treatment and water quality. These funds will help strengthen our area's water infrastructure while also supporting new jobs. I appreciate Governor Hochul's important investment in our community and look forward to seeing all of the long overdue benefits it will bring."

Assemblymember Donna Lupardo said, "I'd like to congratulate the Village of Endicott on being awarded this important water infrastructure grant. Improvements to the Wastewater Treatment Plant will make a big difference for water quality in the Susquehanna River and for their overall operations. I know how hard the Village has worked to upgrade their aging systems to further protect the environment through nutrient reduction. Thank you to the Governor, the EFC, and my legislative colleagues for prioritizing public health and the environment in this way."

Assemblymember John T. McDonald III, RPh said, "This investment is great news for the City of Troy. By securing more than $15.6 million in state and federal support, we are helping the City make critical upgrades to its water treatment plant while minimizing the financial burden on local taxpayers. These improvements will strengthen infrastructure, improve water quality, and ensure Troy's water system remains reliable for years to come. I'm grateful to Governor Hochul, the Environmental Facilities Corporation and our local partners for continuing to prioritize investments that protect public health."

Assemblymember Pamela J. Hunter said, "Access to clean, reliable water is not a luxury. It is a basic necessity for every family and every community. These investments will help local governments modernize aging infrastructure, protect public health and keep costs from falling too heavily on ratepayers. I thank Governor Hochul for continuing to prioritize clean water projects across New York, including critical improvements here in Central New York."

Assemblymember Marianne Buttenschon said, "Our Mohawk Valley waterways have been some of our most valuable resources for hundreds of years, and we must always ensure that they are safe for our residents and visitors alike to enjoy. I extend my appreciation to Governor Hochul for the resources made available through this initiative, which will assist our hardworking County crews in their ongoing efforts to improve local water quality."

Assemblymember Jen Lunsford said, "We are flush with excitement about this robust investment in clean water initiatives. This funding will help Honeoye Falls plunge head first into the future. This 1930-built wastewater treatment plant seated along Honeoye Creek is in desperate need of a relief. It is beyond time to plumb the depth of the problem and unclog the backlog of repairs that have prevented this historic village from meeting the immediate needs of its residents. Thank you to Governor Kathy Hochul for meeting this urgency head-on."

Village of Honeoye Falls Mayor Richard Milne said, "Communities across New York State struggle with the ability to fund major infrastructure projects that impact clean water and drinking water projects. However, Governor Hochul and the New York State legislature understand that if the state of New York is to remain strong and vibrant, it is critical that our Villages, Towns, Cities and Counties must be strong and vibrant as well. Through the State Clean Water and Drinking Water State Revolving Funds programs come opportunities to obtain critical grant funding, along with that, the support of EFC, the states designated water infrastructure bank, additional funding support is available and provides a positive avenue for local communities to consider. The Village of Honeoye Falls appreciates grants awarded and received and the continued support of EFC and the programs continued by Governor Hochul. With this support we expect to move forward with a new Waste Water Treatment Plant project in the Village of Honeoye Falls."

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.

Municipalities and eligible entities can apply for the first installment of this funding on EFC's website. EFC's Community Assistance Teams are available for one-on-one consultations to help municipalities prepare strong applications.

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

New York State Department of Financial Services published this content on June 18, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on June 18, 2026 at 17:48 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]