Governor Hochul Announces $200 Million to Help Communities Modernize Water Infrastructure Without Overburdening Ratepayers

Governor Kathy Hochul announced $200 million is available to help communities undertake critical drinking water, stormwater and sewer projects while keeping costs affordable for local ratepayers. The Environmental Facilities Corporation (EFC) Board of Directors approved funding that empowers local governments to improve water systems without passing high costs on to families and businesses. These investments protect public health and the environment, reduce future risks and support good-paying jobs.

“Every New Yorker deserves access to clean, safe water and communities shouldn’t have to choose between upgrading critical water infrastructure and keeping costs affordable for residents,” Governor Hochul said. “Since I took office, New York has invested $10.6 billion for water and sewer improvement projects, and this latest announcement is part of my ongoing commitment to get the funding out the door, and help local governments get projects underway.”

EFC’s Board approved low-cost financing, federal grants, and previously announced State grants through New York’s premier water infrastructure investment programs that help communities avoid overly burdensome rate increases. Board approval is a milestone in the funding process and allows communities to enter into funding agreements with EFC and access 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 deliver more than $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. This additional funding ceases this year.
The State’s Water Infrastructure Improvement and Intermunicipal Water Infrastructure Grants: Proven vehicles for affordability that have saved ratepayers more than $8.3 billion statewide since 2015. Today, the Board approved grants awarded between 2022 and 2025. Governor Hochul delivered the first installment of her $3.75 billion clean water investment plan and announced nearly $500 million to 106 projects through these programs this week.
The Governor’s Lead Infrastructure Forgiveness and Transformation Grants: Loan forgiveness grants to help communities pay for lead service line projects by covering costs not fully paid for by federal grants.

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 repair, rehabilitate and modernize aging infrastructure.

Environmental Facilities Corporation President and CEO Maureen A. Coleman said, “Today’s approvals demonstrate the tangible impact of Governor Hochul’s commitment to making water infrastructure more affordable for communities. These projects are often among the largest and most capital-intensive investments a municipality will undertake. By combining the Governor’s grant funding with low-cost financing, EFC helps communities close funding gaps, move critical projects forward and make essential improvements to protect public health and water quality without placing an undue burden on ratepayers.”

Funding was approved for projects in the following regions:

Capital Region

Washington County, $6.2 million federal grant to upgrade the Sewer District No. 2 Wastewater Treatment Plant.

Central New York

Town of Forestport, $1.3 million in low-cost financing for wastewater treatment plant disinfection upgrades.
Onondaga County, $1.2 million State grant for the construction of gravity sludge thickener improvements at the Metropolitan Syracuse Wastewater Treatment Plant.
City of Syracuse, $16.1 million federal grant and interest-free financing for sanitary and storm sewer separation in the Sedgwick and Eastwood neighborhoods.

Finger Lakes

Village of Geneseo, $1.9 million State grant and low-cost financing for the replacement of 3,300 linear feet of water mains, hydrants, valves and water meters, including the elimination of 20 lead services lines located on Oak and Second Streets.
City of Rochester, $5 million State grant for the replacement of the filter underdrain system, modification of backwash supply header piping and improvements to the filter gates.
Town of Romulus, $830,328 federal grant for the replacement of 8,600 linear feet of aging water main along Main Street, County Routes 132 and 132A, Prospect Street, and State Route 96A, and the installation of flushing hydrants on dead ended mains in the Willard Water District.

Long Island

Hampton Bays Water District, $4.7 million State grant for a new granular activated carbon treatment system at Plant No. 3.
Suffolk County, $1.5 million federal grant for engineering site investigations and preparation of a feasibility study to address groundwater contamination caused by emerging contaminants, including PFOA and PFOS, at the Suffolk County Firematics facility.
Suffolk County Water Authority, two State grants totaling $2.6 million for the construction of a new advanced oxidation process treatment system to remove 1,4-dioxane from Well No. 2A at the Oxhead Road Well Field.

Mid-Hudson

Village of Harrison, $40.3 million in low-cost financing for the construction of the Westchester Joint Water Work’s Rye Lake Water Filtration Plant.
Town of Mamaroneck, $12.1 million in low-cost financing for the construction of the Westchester Joint Water Work’s Rye Lake Water Filtration Plant.
Village of Mamaroneck, $20 million in low-cost financing for the construction of the Westchester Joint Water Work’s Rye Lake Water Filtration Plant.
City of Poughkeepsie, $2.5 million in low-cost financing for the replacement of biologically active filter media and underdrains of the six dual media filters in the water treatment plant.
Town of Rosendale, $3 million in interest-free financing for the second phase of constructing a 500,000-gallon water storage tank to replace the Sand Hill water storage tank.

Mohawk Valley

City of Gloversville, State and federal grants and interest-free financing for a $12.2 million project to replace 1,791 lead service lines. The State LIFT grant approved today will pay off the financing upon project completion, resulting in a fully grant funded project.
Town of Herkimer, $680,000 in low-cost financing for a new water storage tank to provide adequate distribution pressure and fire flow, a new pump station to replace an existing one to serve the McKennan Road/Steuben Hill Road areas, and replacement of aged undersized water mains and appurtenances.
Village of Herkimer, grants and interest-free financing for a $13.2 million project to replace 1,687 lead service lines. Governor Hochul’s LIFT grant will pay off the financing upon project completion, resulting in a fully grant funded project.

North Country

Village of Chateaugay, $18 million in State and federal grants and low-cost financing for wastewater treatment plant upgrades to implement disinfection and replace aging equipment.
Town of Morristown, $9.9 million in federal grant and interest-free financing for the replacement of 5,300 linear feet of water main and associated appurtenances, extension of 2,800 linear feet of water main, water storage tank rehabilitation, water meter replacement and installation and replacement of the existing diatomaceous earth water treatment plant with a new ultrafiltration water treatment plant.

Southern Tier

Village of New Berlin, $14.9 million in federal grant and low-cost financing for the replacement of approximately 32,500 linear feet of aged water main and associated appurtenances, installation of a manganese greensand filtration system for Well Nos. 1 and 2, abandonment of Well No. 3, a new residential water metering system, and upgrades to the existing 400,000-gallon storage tank.

Western New York

Village of Delevan, $14.9 million in State grant and interest-free financing for a new wastewater collection system.

“New York continues to deliver real results on improving water quality for local communities while protecting our natural environment,” New York State Department of Environmental Conservation Commissioner Amanda Lefton said. “The approval of $200 million in low-cost financing and grants today emphasizes Governor Hochul’s ongoing commitment to strengthen water and sewer infrastructure for the benefit of all New Yorkers.”

New York State Health Commissioner and EFC Board Member Dr. James McDonald said, “Governor Hochul stands committed to helping communities affordably update their drinking water systems by maximizing funding opportunities, so ratepayers don’t burden the cost. The Department of Health’s Bureau of Water Supply Protection will continue to work with municipalities every step of the way on these critical public health projects, from submitting applications for funding to the twist of the tap.”

Under Governor Hochul’s leadership, New York State continues to increase its historic investments in water infrastructure. Governor Hochul announced $500 million in grants this week to deliver the first installment of her $3.75 billion water infrastructure investment plan, building on $10.6 billion provided to local projects since 2021. New Yorkers can track projects benefiting from EFC’s investments using the interactive project impact dashboard. EFC is currently accepting applications for $45 million in funding for Green Resiliency Grants. EFC’s Community Assistance Teams are available for one-on-one consultations to help municipalities prepare strong applications.