Governor Hochul Announces $176 Million to Affordably Advance Local Water Infrastructure Projects Across New York State

Governor Kathy Hochul today announced $176 million is being made available to help more than a dozen communities across New York State affordably undertake critical 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 critical 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.

"Every New Yorker deserves access to clean water, and today's announcement is a testament to our unwavering commitment to protecting public health, the environment and the affordability of essential services," Governor Hochul said. "By investing in water infrastructure upgrades across the State, we are not only addressing urgent needs - like replacing lead service lines and removing harmful contaminants - but also ensuring that no community is left behind in our pursuit of a healthier, more resilient New York."

The funding approved today includes a State grant under Governor Hochul's $100 million Lead Infrastructure Forgiveness and Transformation (LIFT) program. EFC's Board approved $22.8 million in LIFT and federal Infrastructure Investment and Jobs Act (IIJA) funding to replace 2,790 lead pipes in the City of Syracuse. It's part of a broader $469 million Statewide effort to get the lead out. Syracuse is one of 13 communities receiving these loan forgiveness grants to help cover costs not fully paid for by federal grants, minimizing the financial burden of these vital projects 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, long-term financing to help communities afford essential projects.

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 program, enabling more communities to move forward with critical repairs and upgrades. This combined investment strategy - 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, "These investments represent more than just concrete, pipes, and construction - they are investments in the health, safety, and economic strength of communities across New York. Under Governor Hochul's leadership, EFC is proud to help municipalities access the affordable financing and grant support they need to advance critical infrastructure projects, while easing the financial burden on local ratepayers."

New York Department of Environmental Conservation Commissioner Amanda Lefton said, "Thanks to Governor Hochul's sustained commitment to making generational investments and bolstering efforts to address emerging contaminants and other pollution, communities statewide are improving aging wastewater systems and ensuring access to clean water. With $163 million through the Lead Infrastructure Forgiveness and Transformation program and State Revolving Fund investments announced today, New Yorkers will significantly benefit from more harmful contaminants being removed from the state's waters."

New York State Health Commissioner Dr. James McDonald said, "Governor Hochul remains steadfast in her commitment to delivering safe and affordable drinking water for all New Yorkers. This funding will help communities like Syracuse replace lead service lines, while supporting critical infrastructure upgrades in regions such as Long Island and the North Country to protect against emerging contaminants. The Department's Bureau of Water Supply Protection will continue to work with our state and local partners to safeguard public health."

New York Secretary of State Walter T. Mosley said, "New York State continues to make unprecedented investments in drinking water infrastructure as it is a priority for healthy communities, better quality of life and sustainable economic growth for all New Yorkers. This latest round of $176 million in funding is another example of the Governor's leadership in making resources available to help municipalities access the affordable financing they need to advance critical infrastructure projects that are vital for public health without passing high costs on to ratepayers."

Senator Charles Schumer said, "From building new sewers in the Capital Region to replacing lead pipes in Central New York, millions of dollars in federal funding are flowing across New York to invest in water and sewer upgrades. We poured a record level of federal investment in water infrastructure upgrades in our Bipartisan Infrastructure and Jobs Law, and now it's helping all New Yorkers access safe, clean drinking water and modern sewer systems while creating a steady stream of jobs, jobs, jobs. I will always fight to give our communities the critical resources needed to ensure their water is safe, and am grateful for Governor Hochul's work putting these federal dollars to good use and help to turn the tide on our state's aging water infrastructure, create jobs for New Yorkers, and keep our communities safe and healthy."

Senator Kirsten Gillibrand said, "Everyone should have access to clean and safe water, and I am proud to deliver federal dollars that help support the modernization of New York's water infrastructure. These funds will replace thousands of lead pipes and improve water treatment systems from Long Island to the North Country, and I will keep fighting to bring home funding to support our critical water infrastructure needs in the future."

Representative Tom Suozzi said, "The Bipartisan Infrastructure Law, which I helped negotiate as a member of the Problem Solvers Caucus, has made millions available for clean water in my district. Thank you to the Governor and the State of New York for selecting the Albertson and Jericho water districts to receive $10 million to remove PFAS from our public drinking water. The Albertson and Jericho projects are crucial investments that will enhance and protect our water infrastructure for future generations while alleviating the financial burden on local taxpayers. I will continue to work with the state to secure vital federal resources for New York."

Representative John W. Mannion said, "We are making critical water infrastructure investments in Syracuse and across New York that protect public health and keep costs down for families and local governments. This funding will help the City of Syracuse replace thousands of lead service lines and ensure clean, safe drinking water for all residents. I commend Governor Hochul for prioritizing safe drinking water and lead abatement across the state-an effort I strongly supported in the State Senate and remain committed to carrying forward in Congress."

State Senator Pete Harckham said, "Investing in water infrastructure projects is key to maintaining public health and sustaining economic growth in our communities. By directing these substantial state and federal funds to municipalities for upgrading water lines, removing lead piping and decreasing contaminants, we are building on the broad success of our clean drinking water systems while also working toward ensuring the viability of this vital resource for future generations."

Funding was approved for projects in the following regions:

Capital Region

• City of Hudson - $66.6 million in grants and financing for the planning, design, and construction of new sanitary and storm sewers to replace existing combined sewers. The project will mitigate combined sewer overflows which negatively impacts water quality in the Hudson River.
• City of Schenectady - $12.8 million grant and financing package for water treatment plant improvements, including site piping upgrades, the installation of a new fluoride chemical storage and treatment system, installation of three new production wells and associated well houses, and electrical improvements around the site.

Central New York

• City of Syracuse - $22.8 million in grants and financing, including a loan forgiveness LIFT grant, for the replacement of 2,790 lead service lines.
• Village of Weedsport - $19 million grant and financing package for the replacement of 47,500 linear feet of drinking water main throughout the distribution system.

Finger Lakes

• Town of Pembroke - $5 million grant for the formation of Water District No. 4, including installation of approximately 110,000 linear feet of drinking water mains and appurtenances including hydrants, valves, and service meters.

Long Island

• Albertson Water District - $5 million grant for the installation of a granular activated carbon treatment system for the removal of PFAS from existing Well No. 1.
• Jericho Water District - $5 million grant for new wellhead treatment of PFOA from the District's Well No. 23 using granular activated carbon, demolition of the existing wellhouse, and construction of a new drinking water treatment building.

Mid-Hudson

• City of Peekskill - $10.4 million grant and financing package for the planning, design, and construction of resiliency improvements to the Riverfront pump station, gravity collection sewers, and sanitary sewer force mains.

North Country

• Town of Harrietstown - $1.3 million grant for site investigations and preparation of a remedial investigation report to determine the nature and extent of the contamination contributing to source water contamination at the Adirondack Regional Airport from emerging contaminants, including PFAS.
• Town of Cape Vincent - $5 million grant for the installation of approximately 29,000 linear feet of drinking water main and associated appurtenances to serve the new Water District No. 7.

Southern Tier

• City of Hornell - $1.2 million grant for the planning, design and construction of a disinfection system and other improvements to the water pollution control plant. EFC previously provided $4.9 million in interest-free financing for the project.

Western New York

• Village of Depew - $1.9 million grant and financing package for the planning, design, and construction of sanitary sewer improvements to reduce inflow and infiltration to the sewer collection system.

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 design and construction of projects. Once project 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. Based on current market conditions, these long-term financings are projected to save local ratepayers an estimated $14.8 million in interest payments over the life of the financings.

The Board approved long-term interest-free financing for projects undertaken by communities in the following regions:

Finger Lakes

• Village of Corfu - $741,394 in long-term interest-free financing for the planning, design, and construction of a combined outfall and disinfection system at the Town of Pembroke and Village of Corfu wastewater treatment plants.

North Country

• Village of Clayton - $5.6 million in long-term interest-free financing for the planning, design, and construction of wastewater collection and treatment improvements.
• Town of Crown Point - $1.9 million in long-term interest-free financing for the replacement of existing drinking water distribution mains which have reached the end of their useful life, upgrades to the current water sources with new pumps, site piping and control building upgrades, and replacement of the water meter systems.

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.

Contact the Governor's Press Office