More Than $37 Million for Local Water Infrastructure Projects

Governor Kathy Hochul today announced the Environmental Facilities Corporation Board of Directors approved over $37 million in financial assistance for water infrastructure improvement projects across New York State. The Board's approval authorizes municipal access to low-cost financing and previously announced grants to get shovels in the ground for critical water and sewer infrastructure projects, from treatment processes to remove emerging contaminants from drinking water, to replacing lead service lines and modernizing aging systems. These investments protect public health and make projects more affordable, reducing the need for higher rate increases to fund improvements, while also creating good-paying jobs.

“This is how you lead: invest boldly, move fast and protect your people,” Governor Hochul said. “This $37 million investment jumpstarts critical projects to fix aging pipes, tackle emerging contaminants, and upgrade infrastructure, all while keeping costs down for communities and creating good-paying local jobs.”

EFC’s Board approved grants and financings to local governments from the Clean Water and Drinking Water State Revolving Funds – a mix of federal and state dollars dedicated to financing community water infrastructure projects. State Revolving Fund interest rates are below market rate, and with long repayment periods, communities may save significantly on debt service compared to traditional financing.

Today’s funding includes the first grant awarded through the federal Infrastructure Investment and Jobs Act to investigate emerging contaminants. The Board approved a $1.3 million grant to the Town of Hurley in the Hudson Valley for site investigations and preparation of an engineering study to address groundwater contamination caused by emerging contaminants at the town’s closed landfill. EFC has awarded $474 million in grants to remove PFAS from drinking water across the State, and the funding awarded today reflects the State’s comprehensive approach to remediating contamination, starting at the source.

The Board also approved executing previously awarded state grants from the Water Infrastructure Improvement and the Lead Infrastructure Forgiveness and Transformation programs. EFC Board approval is a critical step in the funding process and will allow communities to access these funds for project implementation. Leveraging federal funding with state investments maximizes the impact of each dollar spent, empowering local communities to make critical system improvements they need to keep their residents safe and ensuring cost is not a barrier for project implementation.

Environmental Facilities Corporation President & CEO Maureen A. Coleman said, “Governor Hochul recognizes that affordability isn't just about rent or groceries or the cost of childcare — it’s also about whether a family can afford safe water. With another $500 million allocated to clean water in the Enacted Budget, New York State has invested $6 billion in clean water infrastructure since 2017. Investing in clean water protects families from environmental risks — without forcing those same families to take on crippling debt.”

Department of Environmental Conservation Acting Commissioner Amanda Lefton said, “DEC is committed to helping clean up contamination in communities statewide, including addressing PFAS and emerging contaminants in communities like Hurley. The investments announced today by our partners at EFC help ensure communities have the resources to address aging infrastructure and emerging contaminants, improving water quality across the state. All New Yorkers deserve access to clean water, and under Governor Hochul’s leadership, New York continues to make record investments to protect our natural resources and advance infrastructure projects that are critical to the health and safety of New Yorkers, the environment, and local economies.”

State Health Commissioner Dr. James McDonald said, “Governor Hochul continues to uphold her commitment to safe drinking water for all New Yorkers, and this latest round of funding means critical infrastructure projects will be affordable to municipalities looking to protect their communities without breaking the bank. Through our Bureau of Water Supply Protection, the Department of Health will continue to work with our state and local partners to protect the health and safety of New Yorkers by providing technical assistance and monitoring for emerging contaminants, lead and other chemicals.”

Secretary of State Walter T. Mosley said, “Governor Hochul’s continued support will help create stronger and resilient projects to build healthier communities across the state. This $37 million investment will offer access to resources to safeguard drinking water, create jobs and enhance the foundation for a healthier, more sustainable future for all New Yorkers.”

Senator Charles Schumer said, “Clean drinking water and modern water-sewer systems are fundamental to economic growth and public health. These major federal investments will ensure families from Massena to Port Washington have safe drinking water and our beautiful waterways stay clean, all while creating new good paying jobs, jobs, jobs. I am proud to deliver millions in federal funding from our bipartisan Infrastructure, Investment & Jobs law and am grateful for Governor Hochul’s partnership in the fight to turn the tide on our state’s aging water infrastructure to keep our communities safe and healthy.”

Senator Kirsten Gillibrand said, “Clean water accessibility and aging infrastructure are escalating challenges — but with investments like this one, we can lead the way toward sustainable, forward-thinking solutions while helping consumers keep costs down. This $37 million investment will help New York revitalize its aging water infrastructure, guard against environmental hazards, and strengthen resilience in the face of a changing climate. I’m proud to see federal dollars being used for these projects, and I will continue fighting for investments in New York’s infrastructure.”

Representative Pat Ryan said, “The freedom to drink clean water is fundamentally American – I’m proud to have fought for this federal funding to address contaminated water across the region. Every Hudson Valley family deserves to be certain that the water coming out of the faucet is safe to drink – I’ll keep pushing relentlessly alongside my partners at every level of government to get it done.”

Representative Tom Suozzi said, “The Governor and the state are effectively delivering essential funds to New York’s local water providers from the Bipartisan Infrastructure Law, which I helped negotiate as a member of the Problem Solvers Caucus. The Port Washington project is a crucial investment that will enhance and protect our water infrastructure for future generations while reducing the financial burden on our local taxpayers. I will continue to work with the state to try and bring vital federal resources back to New York.”

Representative Josh Riley said, “Working alongside our state partners, we've secured $1.3 million for Hurley to address groundwater contamination at their closed landfill and $1.4 million for Athens to upgrade their surface water treatment plant. I'll continue fighting to deliver critical resources and investments for communities across Upstate New York.”

Funding was approved for projects in the following regions:

Capital Region

• Village of Athens - $1.4 million grant and financing package for upgrades to the surface water treatment plant.

Finger Lakes

• Town of Darien - $4 million grant and low-cost financing package for the design and construction of a new drinking water pump station and force main.

Long Island

• Port Washington Water District - $5 million grant for the construction of a granular activated carbon treatment system for the removal of PFOA and PFOS from existing Well No. 6.

Mid-Hudson

• Town of Hurley - $1.3 million grant for engineering site investigations and preparation of a remedial investigation/feasibility study to address groundwater contamination caused by emerging contaminants at the town’s closed landfill.
• City of Peekskill - $3 million state grant for the replacement of approximately 5,250 linear feet of drinking water main and replacement of an existing structurally deficient storage tank with a new 400,000-gallon tank.
• Village of Red Hook - $915,028 low-cost financing for the decommissioning of Well No. 4, replacement of approximately 2,400 linear feet of existing water main, hydrants, and lead service connections on Graves and Cherry Street, rehabilitation of the interior of the existing 225,000-gallon water tower located at the end of Tower Street, and replacement of the control system at the water treatment plant.
• Village of Warwick - $1.1 million grant and interest-free financing package for exploratory work required to create a drinking water service line material inventory, with an emphasis on locating lead or galvanized pipe.

Mohawk Valley

• Village of Otego - $3.9 million in grants for the installation of a redundant production well, replacement of asbestos-lined pipe and exposed water main, relocation of a well house treatment building to a higher elevation, replacement of a booster pump station, and the installation of a tank mixer.

North Country

• Town of Black Brook and Town of Jay- Financing to each town for the planning, design and construction of improvements to the Au Sable Forks wastewater treatment facility. It’s jointly owned and both municipalities are financing their share.
  • $525,413 in interest-free financing to the Town of Black Brook.
  • $788,120 in low-cost financing to the Town of Jay.
• Village of Constableville - $588,280 in low-cost financing for the planning, design, and construction of wastewater treatment plant improvements.
• Town of Massena - $8 million grant and interest-free financing package for the installation of approximately 31,000 linear feet of drinking water main and associated appurtenances to serve the new South Raquette Water District.

Southern Tier

• Village of Millport - $1.3 million grant and low-cost financing package for the development of a second groundwater supply well, the addition of chlorine gas detectors to the well house, and the addition of standby emergency backup power for the wells and well house.

Western New York

• Village of Bolivar - $5.7 million grant and interest-free financing for design and construction of wastewater treatment facility upgrades.

Refinancing Completed Projects Will Achieve Long-Term Debt Service Savings in New York City
The Board also took action to help ensure continued, long-term affordability of existing drinking water and sewer projects in New York City. The Board approved a $728 million proposed bond sale for refinancing various drinking water and sewer projects and refunding certain prior bonds. Refundings are part of EFC’s proactive financial management to ensure projects remain cost-effective over the life of the financing and reduce debt service payments. Based on current market conditions, this bond sale is projected to save City ratepayers an estimated $172 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 $2.2 billion in financial assistance from EFC for local water infrastructure projects in State Fiscal Year 2024 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 between 2017 and this year. 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.