NY advances $269 million in affordable water infrastructure projects
New York Governor Kathy Hochul has announced $269 million in financing and grants to help communities across the state undertake essential water and wastewater infrastructure upgrades without sharply increasing ratepayer costs.
The funding package, approved by the Environmental Facilities Corporation (EFC) Board, supports projects ranging from lead service line replacement to emerging contaminant removal, while reinforcing state efforts to modernize aging systems and strengthen long-term resiliency.
A major portion of the new awards benefits the Cities of Poughkeepsie and Troy, which will receive federal Infrastructure Investment and Jobs Act funding alongside New York’s Lead Infrastructure Forgiveness and Transformation (LIFT) grants to accelerate lead pipe inventories and replacements. The initiative is part of a broader $535 million statewide effort to help municipalities address lead infrastructure and comply with stricter drinking water regulations. EFC also advanced additional support through the state’s Clean Water and Drinking Water State Revolving Funds, which together deliver more than $1 billion annually for local water and sewer projects.
The Board’s approvals span every region of the state, funding work such as sewer separation in Albany, wastewater treatment plant upgrades in Rotterdam and Utica, PFAS and 1,4-dioxane treatment on Long Island, and stormwater management improvements in New York City. Several communities, including Dresden, Rotterdam, and Ogdensburg, will receive grants supported by the Clean Water, Clean Air, and Green Jobs Environmental Bond Act, which prioritizes infrastructure investments that improve climate resiliency and public health.
In addition to new project financing, EFC authorized long-term, interest-free refinancing for completed infrastructure work in Rome and Wayland. These refinancings are expected to save local ratepayers nearly $19 million over the life of the loans, underscoring the state’s effort to reduce the cost burden of necessary upgrades. Officials emphasized that fully funded revolving loan programs are critical to preventing system failures, mitigating environmental risks, and keeping essential water services affordable.
The investment package continues New York’s broader push to accelerate water infrastructure modernization, with more than $3.4 billion in assistance provided in FY 2025 alone. With an additional $500 million committed in the FY 2026 budget, New York will exceed $6 billion in water infrastructure investment since 2017, positioning the state as a national leader in expanding clean water access and replacing aging underground systems.
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