Governor Hochul Celebrates Landmark $3.8 Billion Investment in Water Infrastructure During SFY 2025

$1.1 Billion in Targeted Grants are Making Projects Affordable for Communities

New SFY 2025 Clean Water Funding Report Details Coordinated Efforts of Seven Agencies

Governor Kathy Hochul today announced the State’s $3.8 billion investment in local water infrastructure projects during State Fiscal Year 2025. A newly released New York State Clean Water Funding Report shows that New York delivered $1.1 billion in water quality grants in a single fiscal year, significantly reducing costs for local governments, families and businesses. Governor Hochul’s administration is providing unprecedented support to advance drinking water, wastewater and stormwater upgrades that are protecting public health and the environment, building community resiliency, improving quality of life and creating good-paying jobs.

“New York continues to set a national standard for water infrastructure investment that keeps water rates affordable for our communities,” Governor Hochul said. “We’re beginning to see tremendous progress as supported projects are completed and deliver benefits where they’re needed most.”

The historic $3.8 billion investment was made possible by Governor Hochul’s continued grant funding commitments for clean water, a surge of federal funding to the State Revolving Funds from the Infrastructure Investment and Jobs Act, and State funding through the transformational Clean Water, Clean Air, and Green Jobs Environmental Bond Act and the Environmental Protection Fund. This reflects a whole-of-government commitment to protecting public health, safeguarding the environment, and keeping water rates affordable for New Yorkers.

The Environmental Facilities Corporation (EFC) anchors most of the distributed funding as the State’s water infrastructure bank. The Governor’s clean water and affordability agendas succeed with the expertise of EFC, the Departments of Environmental Conservation (DEC), Health (DOH), State (DOS), and Agriculture and Markets (Ag&M), and the Division of Homes and Community Renewal (HCR). These agencies provide grants that help address the diverse water infrastructure needs of communities statewide. The Division of Homeland Security and Emergency Services (DHSES) administers Federal Emergency Management Agency (FEMA) programs that complement the State’s funding by providing resources that help ensure local investments deliver lasting value.

The hundreds of projects supported through the SFY 2025 investment include:

• Treatment plant upgrades
• New and repaired water mains
• New and improved wastewater collection and sewer systems, including the decommissioning or replacement of failing septic systems
• Treatment of public water supplies to remove emerging contaminants
• Lead service line inventory and replacement
• Stormwater management systems
• Land acquisition for source water protection
• Improved salt storage and road salt reduction practices
• Dam safety rehabilitation and removal
• Fish and wildlife habitat restoration, including aquatic, terrestrial, and marine systems
• Nonpoint source pollution abatement
• Resiliency improvements in flood-prone areas

The funding report details investments and project impacts from April 1, 2024, through March 31, 2025, including metrics for the Clean Water and Drinking Water State Revolving Funds. The State Revolving Funds are New York’s primary tools for advancing its clean water goals, providing low-cost financing and grants to local governments.

The report also breaks down the $1.1 billion in grants delivered through the State’s range of water infrastructure funding programs, including:

• Water Infrastructure Improvement and Intermunicipal Water Infrastructure Grants
• Water Quality Improvement Projects Program
• Lead Infrastructure Forgiveness and Transformation Grants
• Septic System Replacement Fund
• Green Resiliency Grants
• Community Development Block Grant
• Green Innovation Grant Program
• Concentrated Animal Feeding Operation Enhanced Nutrient and Methane Management Program
• Local Government Efficiency and Appalachian and Northern Border Regional Commissions
• Wastewater Infrastructure Engineering Planning Grants
• Non-Agricultural Nonpoint Source Planning and MS4 Mapping Grants
• Clean Vessel Assistance Program

Complementing the $3.8 billion for water quality projects, DHSES provided an additional $647 million in FEMA grants for disaster recovery related to flooding, storms, and snow in SFY 2025. The Public Assistance and Hazard Mitigation Assistance programs provide critical resources to help flood-stricken municipalities reduce vulnerability to severe storms. These federal programs support New York’s broader clean water and infrastructure goals by helping communities integrate resiliency into local planning, facility upgrades, and community-wide risk reduction strategies.

EFC leads the Community Assistance Teams initiative that brings partner agencies together to help local governments access funding and to further Governor Hochul’s commitment to water infrastructure improvement in small, rural, and disadvantaged communities. DEC and DOH also offer free technical assistance to municipalities to protect drinking water supplies through the Drinking Water Source Protection Program, among numerous other programs and initiatives to manage and protect water quality statewide.

New York's Commitment to Water Quality

New York State continues to increase its nation-leading investments in water infrastructure. 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, including $453 million in grants awarded by EFC in December 2025. Any community needing assistance with water infrastructure projects is encouraged to contact EFC.