Governor Hochul Announces $269 Million to Make Local Water Infrastructure Projects Affordable Across New York State

Governor Hochul Announces $269 Million to Make Local Water Infrastructure Projects Affordable Across New York State

Governor Kathy Hochul today announced $269 million was made available to help communities across the State affordably undertake 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.

"This investment is about making essential water improvements more affordable for communities across New York," Governor Hochul said. "By lowering costs for local governments, we are helping ensure New Yorkers can rely on safe, clean water without facing added financial pressure. These upgrades also strengthen our long-term resilience, ensuring our water systems can withstand future challenges and remain sustainable for decades to come."

The funding approved today includes investments for the Cities of Poughkeepsie and Troy from the federal Infrastructure Investment and Jobs Act (IIJA) and Governor Hochul's Lead Infrastructure Forgiveness and Transformation (LIFT) grant program. These investments are part of the $535 million Statewide effort to help communities pay for lead service line inventory and replacement projects. These loan forgiveness grants help cover costs not fully paid for by federal grants, minimizing the financial burden 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 and Green Resiliency Grant programs, including five 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 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, "Communities need affordable solutions to take on complex infrastructure challenges. Combining the State Revolving Funds with State grants provides steady, long-term investment that helps communities achieve cleaner water and stronger systems while protecting the pockets of New Yorkers."

New York State Health Commissioner Dr. James McDonald said, "Governor Hochul is committed to safe drinking water for all New Yorkers and this funding will allow municipalities like Troy and Poughkeepsie to affordably locate and replace lead service lines to protect the health of their communities. The Department of Health's Bureau of Water Supply Protection will continue to work with state and local partners to make projects like these a reality, and safeguard drinking water for generations to come."

Funding was approved for projects in the following regions:

Capital Region

• Albany Municipal Water Finance Authority, funding for two projects:

-$3.6 million in State and federal grants and interest-free financing for the planning, design, and construction of sewer separation around Washington Park Lake and Thurlow Terrace to reduce combined sewer overflows in the City of Albany.

-$18 million in federal grant and interest-free financing for the design and construction of sewer collection system improvements within the City of Albany.

• Town of Rotterdam, funding for two projects:
  • $17.8 million in State grant and low-cost financing for the construction of wastewater treatment plant improvements. The State grant is funded by the Environmental Bond Act.
  • $34 million in low-cost financing for high priority drinking water distribution system improvements and well field improvements in Water District No. 5.
• City of Troy, $16.7 million in State and federal grants and interest-free financing, including a loan forgiveness LIFT grant, to replace 1,110 lead service lines.
• Village of Whitehall, $2.9 million in federal grant and low-interest financing for the planning, design, and construction of disinfection and other upgrades at the wastewater treatment plant.

Finger Lakes

• Village of Avon, $4.7 million in State grant and low-interest financing for upgrades and rehabilitation of drinking water storage tanks, installation of mixing systems, and upgrade of a valve vault and valves within the distribution system.
• Village of Dresden, $6.6 million State grant and low-cost financing for the replacement of approximately 20,000 linear feet of aged and undersized asbestos-cement piping. The State grant is funded by the Environmental Bond Act.
• Village of Penn Yan, $6.2 million in interest-free financing for the planning, design, and construction of improvements at the Cherry Street Pump Station and a new force main from the pump station to the wastewater treatment plant.
• Village of Phelps, $12.7 million in State grant and interest-free financing for the design and construction of upgrades at the wastewater treatment plant.

Long Island

• Town of Hempstead, $5 million State grant for the construction of a new advanced oxidation process, granular activated carbon, and green sand filter treatment systems to remove 1,4-dioxane and iron from East Meadow Water District Well No. 10.
• Locust Valley Water District, $4.9 million federal grant for the installation of two granular activated carbon adsorption treatment systems and associated appurtenances at Well 9 to treat PFOA contamination.
• Town of Smithtown, $998,200 federal grant to extend the boundaries of the Smithtown Water District service area to provide water to residences with private wells contaminated with PFAS.
• Suffolk County Water Authority, six State grants totaling $5.5 million for the following projects:
  • Construction of new advanced oxidation process treatment systems to remove 1,4-dioxane from Hawkins Road Well No. 2, North Washington Avenue Well No. 1, and Kings Park Road Well No. 2A.
  • Construction of new granular activated carbon absorption vessels to remove PFAS from Blue Point Road Well No. 4A, Boyle Road Well No. 2, and Foxcroft Lane Well No. 2.

Mid-Hudson

• Village of Nyack, $7.2 million in State and federal grants and low-cost financing to upgrade a surface water treatment plant to install two sets of granular activated carbon filter vessels.
• City of Poughkeepsie, funding for two projects:
  • Interest-free financing and a loan forgiveness LIFT grant totaling $906,600 for exploratory work required to create a drinking water service line material inventory, with emphasis on locating lead or galvanized pipe.
  • $6.2 million in federal grant and interest-free financing for the design and construction of a stormwater management project.

Mohawk Valley

• Town of Frankfort, $700,000 State grant for the creation of the Center and Zolad Roads Water District.
• City of Utica, $24.1 million in State and federal grants and interest-free financing for various combined sewer overflow improvement projects.

New York City

• New York City Housing Authority, $6.9 million for the Jefferson Houses Cloudburst Project to manage, store, and filter stormwater runoff at a public housing development in East Harlem. The project will install a subsurface retention system, porous concrete pavers, and two synthetic turf fields. In addition to stormwater capture, these green infrastructure practices will reduce the urban heat island effect while providing residents access to outdoor recreation space.

North Country

• Village of Dexter, $2 million in State and federal grants and low-cost financing for the design and construction of disinfection facilities at the sewage treatment plant.
• Village of Gouverneur, $2 million in State and federal grants and interest-free financing for the planning, design, and construction of a sanitary and storm sewer separation project.
• Town of Keene, $7.2 million in State grant and low-cost financing for the installation of a new drinking water production well, rehabilitation of the existing treatment building, installation of water meters and installation of all required appurtenances to connect the new well to the treatment building and distribution system.
• City of Ogdensburg, $2.6 million in State and federal grants and interest-free financing for the planning, design, and construction of sanitary and storm sewer improvements. The State grant is funded by the Environmental Bond Act.
• Town of Peru, $25.6 million in State grant and low-cost financing for the planning, design and construction of wastewater treatment plant improvements.
• Town of St. Armand, $2 million in low-cost financing for the planning, design, and construction of wastewater disinfection improvements.

Southern Tier

• City of Binghamton, $7.7 million for the planning, design and construction of a new force main and pump station to replace the existing 6th Ward interceptor sewer and Delevan Pump Station.
• Town of Cohocton, $3.6 million in State grant and low-cost financing for the installation of approximately 6,800 linear feet of new drinking water main, hydrants and valves on Wayland Street, Beecher Street, and University Avenue. The State grant is funded by the Environmental Bond Act.
• City of Elmira, $6 million in State and federal grants and interest-free financing for drinking water main replacement at Water Street, the High Reservoir, and the Chemung River crossings at Harmon and Lake Streets.

Western New York

• Village of Cattaraugus, $10.5 million in State grant and interest-free financing for a new groundwater well, rehabilitation of the existing well, drinking water treatment plant upgrades, replacement of 28,200 linear feet of water main, and water storage tank upgrades.

Refinancing Completed Projects Will Achieve Long-Term Debt Service Savings
The Board also took action to help ensure continued, long-term affordability of existing projects. Short-term financing provides capital for project design and construction. Once 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 long-term interest-free financing for projects undertaken by communities in the following regions:

Mohawk Valley

• City of Rome, $12.7 million in long-term interest-free financing for the planning, design, and construction of the Railroad Street interceptor sewer project.

Southern Tier

• Village of Wayland, $2 million in long-term interest-free financing for the design and construction of wastewater treatment plant improvements.

Based on current market conditions, these long-term financings are projected to save local ratepayers an estimated $18.8 million in interest payments over the life of the financings.

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.

Senator Kirsten Gillibrand said, "Access to safe, affordable water is essential to public health and the environment. Thanks to our Bipartisan Infrastructure Law, New York communities are getting the support they need to modernize water infrastructure, protect families, and help ensure no one has to worry about harmful contaminants in their water. I am proud to have worked to secure this funding and will continue fighting to deliver the resources our state needs to build safer and more resilient infrastructure."

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 remained unaddressed, leaving too many New Yorkers vulnerable to significant negative health effects. Today's major announcement will help communities across our state - including the City of Troy - replace lead service lines and make other critical infrastructure improvements that will help residents live longer, healthier lives. I've been proud to fight for full federal funding for our Clean Water and Drinking Water State Revolving Funds throughout my time in Congress, and I'm grateful to Governor Hochul for helping these crucial investments reach the communities that need them most."

Representative Pat Ryan said, "Freedom means every American has the right to drink clean water, and be protected from inclement weather. That's why I fought so hard to get this funding moving, and why I'm so proud to join the Governor in announcing this game-changing win for our community here today. This is a huge step towards ensuring that parents in Poughkeepsie never have to worry if the water coming out of the faucet is safe for their kids, and it's a huge step towards strengthening our stormwater management systems. I'm proud to work alongside our state and local partners on this to get federal dollars out the door to communities, like Poughkeepsie, that need them most."

Representative John W. Mannion said, "I supported the Environmental Bond Act in the State Senate to help communities like Utica invest in their critical water infrastructure without overburdening local taxpayers. These upgrades will protect public health, strengthen neighborhoods, and support the city's long-term growth. I'm grateful to see Governor Hochul and the state making Utica a priority, and I'll continue working to secure federal resources to keep these projects - and NY-22 - moving forward."

Representative Josh Riley said, "Every family should be able to turn on the faucet and have clean drinking water. With strong state and local partners, we're finally getting long-delayed repairs moving and giving communities a fair shake. I'll keep fighting in Washington to deliver the resources our towns need to finish the job and keep costs down for working people."

City of Binghamton Mayor Jared M. Kraham said, "This is a major investment to upgrade critical but aging infrastructure, protect against flooding and improve the environmental impact and efficiency of our sewer system. My thanks to Governor Hochul and New York State for the support to make this project possible in the City of Binghamton."

City of Poughkeepsie Mayor Yvonne Flowers said, "I want to thank Governor Hochul for making the removal of lead from our drinking water infrastructure a top priority. This new funding gives Poughkeepsie the ability to identify and replace lead service lines more quickly and affordably, ensuring that every family in our city has access to clean, safe water. Protecting our residents - especially children - from the dangers of lead is one of our most important responsibilities, and this investment is a critical step forward."

City of Rome Mayor Jeffrey Lanigan said, "On behalf of the City of Rome, I want to thank Governor Hochul for her continued commitment to strengthening New York's infrastructure. The long-term, interest-free financing approved for Rome's Railroad Street interceptor sewer project is a vital investment in our city's future. This support allows us to modernize essential infrastructure, protect public health, and deliver these improvements without placing additional burdens on our taxpayers. We are grateful to the Governor, the Environmental Facilities Corporation, and our state partners for ensuring communities like ours have the resources needed to build a stronger, more resilient Rome."

City of Utica Mayor Michael Galime said, "These dollars allow Utica to maintain and rebuild aging infrastructure. Without this funding our sewer systems would fail to meet the needs of our community, and put unnecessary stress on the County's infrastructure. It is grants and financing that keep us operating. Thank you."

Village of Nyack Mayor Joseph Rand said, "There is nothing more important, and frankly, more expensive, than providing clean drinking water to our Village. I am profoundly grateful for the support of Governor Hochul in providing funding without which this small village would be very hard pressed to comply with current regulations, especially for the removal of PFAS "forever chemicals."

Village of Phelps Mayor Jim Cheney said, "We are very appreciative of the support we continue to receive from New York State as we work to improve our community and our infrastructure. The funding from the Clean Water and Drinking Water State Revolving Funds is instrumental in building a state-of-the-art wastewater treatment facility that will be more efficient, environmentally friendly and will have the capacity for the projected growth in our community. The state has identified the need to replace our outdated facility for some time. Without this critical support from the state, it would be very difficult for small communities, such as ours, to take advantage of new infrastructure and technology. This assistance will allow us to do so."

Village of Avon Mayor Rob Hayes said, "Avon is proud to be part of this statewide effort to strengthen water infrastructure. We're grateful to Governor Hochul and the Environmental Facilities Corporation for this investment, which will help ensure safe, reliable drinking water for our residents while helping us keep costs affordable. This funding protects public health and supports our long-term vitality and smart growth initiatives."

Village of Cattaraugus Mayor Anthony Nagel said, "The Village of Cattaraugus is deeply grateful for this significant investment in our community's future. We sincerely appreciate Governor Hochul's continued focus on supporting rural communities like ours. This award not only allows us to modernize our aging water infrastructure, but also strengthens our capacity for responsible growth. When paired with our Downtown Revitalization Initiative award and the ongoing momentum within our business district, this project advances our commitment to delivering a vibrant, resilient future for the residents of Cattaraugus."

Town of Frankfort Supervisor John Wallace said, "The Town of Frankfort is grateful for the funding allocated to support our first water infrastructure projects in 40 years. This investment restored the project to pre-COVID cost levels, allowing us to provide clean, reliable public water at an affordable cost for all residents. Thank you Governor Hochul for your support."

Town of Hempstead Deputy Supervisor Dorothy L. Goosby said, "As someone who has spent many years working to make sure our community has clean and safe water, I want to thank Governor Hochul for once again stepping up for local governments and the people we serve. This support will help us make important repairs without raising costs for our families, especially our seniors who live on fixed incomes. Everyone deserves clean water, and I am grateful for the Governor's help in keeping our community healthy and strong."

Town of Keene Supervisor Joe Pete Wilson said, "The Town of Keene is thankful for the support of Governor Hochul and the Environmental Facilities Corporation. The funding awarded to the Keene Valley Water District is critical to our project which provides clean drinking water to the community as well as our school and senior housing facilities. This program of grants and low interest loans makes it possible for very small districts like ours to afford the high cost of infrastructure upgrades."

Town of Peru Supervisor Craig Randall said, "Governor Hochul's announcement this morning regarding NYS Environmental Finance Corporation's approval of funding in the amount of $25.6 Million in support of the Town of Peru's replacement of its Wastewater Treatment Plant is welcome news. The Town has been operating this plant under consent orders since 2023 while it worked to secure funding that would allow the project to be done. The upgraded wastewater plant will serve the town of Peru for at least 40 years while also allowing for future growth as new users are added to the system."

Town of Smithtown Supervisor Edward R. Wehrheim said, "Without this funding, the cost of fixing PFAS contamination would have fallen directly on homeowners relying on private wells, often running into the tens of thousands of dollars per household. For most families, that burden would simply be impossible to meet. The Local Water Infrastructure funding removes an insurmountable financial obstacle and replaces it with real, lasting protection for our residents. Everyone deserves access to clean, safe, drinkable water, without barriers or exceptions. We are deeply grateful to Governor Kathy Hochul, our federal partners, and the programs that helped make what was once unattainable a reality for the people of Smithtown."

Suffolk County Water Authority Chief Executive Officer Jeffrey Szabo said, "The Suffolk County Water Authority is moving fast on projects that keep our customers protected from emerging contaminants, and this funding directly supports that work. We are already meeting the 4 parts per trillion national drinking water standard for PFAS years ahead of schedule and we've installed 19 advanced oxidation process systems for 1,4-dioxane - the most of any provider in New York. Grants like these are essential to keeping water bills stable at a time when affordability is top of mind for Suffolk families. We thank Governor Hochul for making clean water a priority and for providing the support that allows us to continue delivering high-quality drinking water while keeping rates low for our customers."

Contact the Governor's Press Office