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

Low-Cost Financing and Grants Minimize Ratepayer Burden for Critical Water Infrastructure Improvements Statewide

Includes Lead Infrastructure Forgiveness and Transformation Grant for the City of Syracuse

Governor Kathy Hochul 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.

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.