Governor Hochul Announces $340 Million for Local Water Infrastructure Projects Across New York State

A Mix of Financing and Grants Ensure Projects Continue Making Progress in Their Communities and New Projects Break Ground

The Funding Includes $250 Million for New York City To Ensure Its Residents Have Access to Clean, Affordable Drinking Water

Governor Kathy Hochul today announced the Environmental Facilities Corporation (EFC) approved $340 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. These investments help make critical environmental infrastructure projects more affordable, sustainable, and manageable, reducing the need for higher rate increases to fund improvements. From upgrading wastewater treatment plants to improving drinking water quality, these projects are crucial for safeguarding public health, protecting our environment, and boosting local economies.

“New York State is continuing its historic investments in clean water infrastructure because every New Yorker deserves access to safe, affordable drinking water,” Governor Hochul said. “This is not just an investment in our pipes and treatment plants; it is an investment in the health, well-being, and future of our communities. By working together with local governments, we are ensuring that critical water infrastructure projects move forward without placing an undue burden on taxpayers.”

The funding includes $250 million in subsidized financing for three critical drinking water projects in New York City. EFC is providing a $100 million loan for the Kensico-Eastview Connection project, the largest water-supply tunneling effort undertaken by the city in decades. The project will improve flexibility between vital water-supply facilities that serve more than 9 million people in New York City and Westchester County.

EFC approved grants 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. Today’s funding also includes over $22 million in grants already announced pursuant to the Water Infrastructure Improvement Program. EFC’s Board approval is a critical step in the funding process and will allow communities to access these funds for project implementation. Leveraging federal funding in conjunction with state investments maximizes the impact of each dollar spent, empowering local communities to make the critical system improvements they need to keep their residents safe.

Funding was approved for projects in the following regions:

Central New York

• City of Oswego - $4.4 million in interest-free financing to upgrade the aeration system and other improvements at the Eastside Wastewater Treatment Plant.

Finger Lakes

• Town of Bethany - A $5 million state grant for the formation of the new Water District No. 5 to provide public drinking water to approximately 1,000 residents.
• Town of Pavilion - $871,750 in low-cost financing and a $78,250 state grant for the planning, design, and construction of a new disinfection system at the wastewater treatment plant.
• Town of Romulus - $535,447 in interest-free financing and a $178,483 state grant for the design and construction of sanitary sewer inflow and infiltration improvements in the sewer district serving the Hamlet of Romulus.

Mid-Hudson

• Town of Cortlandt - A $794,750 state grant for the planning, design, and construction of a pump station and force main to serve the Yeshiva Ohr Hameir Campus in the Furnace Brook Sewer District.

Mohawk Valley

• Mohawk Valley Water Authority - A $3 million state grant for the construction of approximately 3,500 linear feet of new drinking water transmission mains from Hinckley Reservoir to the Mohawk Valley Water Authority Water Treatment Plant.

New York City

• $100 million in low-cost financing for the construction of a second drinking water conveyance tunnel from the Kensico Reservoir to the Catskill/Delaware Ultraviolet Disinfection Facility in Eastview.
• $75 million in low-cost financing for drinking water system improvements to the Hillview Reservoir which include the construction of chemical addition facilities and flow control facilities.
• $75 million in low-cost financing for the excavation and construction of Shafts 17B-1 and 18B-1, which are part of the drinking water system at City Tunnel No. 3, Stage 2 in Queens.

North Country

• Village of Canton - $10.1 million in interest-free financing and a $3.375 million state grant for the planning, design, and construction of wastewater treatment plant improvements.
• Town of Clifton - $585,000 in low-cost financing and $148,500 in state and federal grants for the planning, design, and construction of improvements to the Newton Falls Wastewater Treatment Plant.
• Village of Theresa - $4.6 million in low-cost financing and two state grants totaling $3.5 million for the planning, design, and construction of collection system and wastewater treatment plant improvements.

Western New York

• Chautauqua County - $809,750 interest-free financing and two state grants totaling $798,500 for the design and construction of collection system improvements in the Portland Pomfret Dunkirk Sewer District. One of the state grants is funded by the Clean Water, Clean Air and Green Jobs Environmental Bond Act of 2022.
• Town of Chautauqua - $2.6 million in interest-free financing and $2.8 million in federal and state grants for the design and construction of the Sewer District No. 1 sewer extension to the Shorelands area.
• Town of Concord - $4.9 million interest-free financing and $1.175 million state grant for the planning, design, and construction of the Kissing Bridge and Craneridge Wastewater Treatment Plants consolidation project.
• West Seneca - $3.8 million state grant for the construction of sanitary sewer improvements in Sewer Districts 5 and 13.

Refinancing Completed Projects Will Achieve Long-Term Debt Service Savings

EFC’s Board also took action to ensure the continued affordability of existing projects. The Board approved long-term financing totaling over $35 million for projects undertaken by communities in the following regions:

Capital Region

• Albany Municipal Water Finance Authority for the planning, design and construction of combined sewer overflow abatement projects constructed in the Cities of Troy, Albany and Cohoes in support of the Albany Pool Combined Sewer Overflow Long-Term Control Plan.

Finger Lakes

• Village of Leroy for the planning, design and construction of improvements to and rehabilitation of the wastewater treatment plant.

Mohawk Valley

• Town of Oneonta for two drinking water projects related to the creation of water district Nos. 5 and 6 in the Route 23 corridor to serve presidential properties that had relied on insufficient private wells.

North Country

• Town of Crowne Point for the planning, design, and construction of a replacement wastewater treatment plant and sanitary sewer rehabilitation.

Western New York

• Village of Wellsville for the construction of wastewater treatment plant and sewer collection system improvements.

Short-term financing provides capital for the design and construction of projects. Once project construction is completed, short-term financing is typically refinanced to long-term financing for up to 30 years, saving municipalities significant interest expenses. Based on current market conditions, these long-term financings are projected to save local ratepayers an estimated $46 million in interest payments over the life of the financings.

Project Impact Dashboard

New Yorkers can track projects benefiting from EFC’s investments using the interactive project impact dashboard. The map can be filtered by funding type and show a project’s stage of construction. Each project announced today will be included on the map once the community executes a funding agreement with EFC.

New York's Commitment to Water Quality

New York State is leading the nation in its water infrastructure investments, including more than $2.2 billion in financial assistance for local water infrastructure projects in State Fiscal Year 2024 alone. With $500 million allocated for clean water infrastructure in Governor Hochul’s FY26 Budget, New York will have invested a total of $6 billion in water infrastructure since 2017.

EFC is accepting applications for the Green Innovation Grant Program and Wastewater Infrastructure Engineering Planning Grants. Applications are due by 5 p.m. on April 11. Any community needing assistance with water infrastructure projects is encouraged to contact EFC.