Governor Hochul Announces $434 Million to Make Local Water Infrastructure Projects Affordable Across New York State

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

Includes $361 Million for New York City Drinking Water and Sewer Projects

Governor Kathy Hochul today announced $434 million to make water and sewer infrastructure improvement projects more affordable for communities statewide. The Environmental Facilities Corporation (EFC) Board of Directors approved low-cost financing and State and federal grants that empower local governments to modernize aging systems without passing high costs on to local ratepayers. These investments protect public health and the environment, reduce future risks and support good-paying jobs.

"Affordability means investing before problems become crises,” Governor Hochul said. “That's why we're making historic investments to help communities modernize their water infrastructure, protect public health and keep costs low for families across New York.”

EFC’s Board approved low-cost financing and previously announced grants through New York’s premier water infrastructure investment programs that help communities avoid overly burdensome rate increases. Board approval is a milestone in the funding process and allows communities to enter into funding agreements with EFC and access funds for their projects. Projects that reach the Board approval stage have completed environmental reviews and satisfied all other program requirements.

The funding announced today builds on EFC’s continued investments in drinking water and sewer projects in New York City. The Board approved $361 million in low-cost financing for 11 critical projects. With this funding announced today, EFC has provided $1 billion in financial assistance to these 11 projects as part of the State’s broader commitment to support affordable clean water in New York City.

Funding is provided through:

• The Clean Water and Drinking Water State Revolving Funds: A mix of State and federal dollars that deliver more than $1 billion in low-cost financing and grants annually to New York communities. The federal Infrastructure Investment and Jobs Act has significantly bolstered the State Revolving Funds since 2022, driving critical investments to help modernize New York’s water and sewer infrastructure. This additional funding ceases this year.
• The State’s Water Infrastructure Improvement and Intermunicipal Water Infrastructure Grants: Proven vehicles for affordability that have saved ratepayers more than $8.3 billion statewide since 2015. EFC is currently reviewing applications for $425 million in grant funding made available through these programs, representing the first installment of the Governor’s bold $3.75 billion clean water investment plan delivered in the FY 2027 Enacted State Budget.
• The State’s Green Resiliency Grants: Launched by Governor Hochul in 2023 to protect New Yorkers from the impacts of extreme weather, with $121 million awarded to date.

Combining State and federal funding ensures every dollar goes further in modernizing aging infrastructure across the State, protecting public health and the environment. Fully funded State Revolving Funds are necessary for New York to meet the ongoing need for communities to repair, rehabilitate, and modernize aging infrastructure.

Funding was approved for projects in the following regions:

Capital Region

• Village of Corinth, $1.6 million State grant for the replacement of approximately 5,217 linear feet of sanitary sewer, 5,542 linear feet of storm sewer, and 22 manholes along Palmer and Gobel Avenues. By reducing the amount of groundwater and stormwater entering the system through aging clay pipes, the project will help the wastewater treatment plant operate more efficiently and maintain reliable treatment of wastewater before it is released to the Hudson River.EFC previously awarded interest-free financing to the project.

Finger Lakes

• City of Canandaigua, $4.8 million in low-cost financing for the construction of headworks improvements at the water resource recovery facility to address overflow events during wet weather and protect water quality in the Canandaigua Outlet.

Hudson Valley

• Town of Amenia, $3.9 million in State grant and low-cost financing for upgrades to the drinking water treatment plant, groundwater source, and the storage and distribution systems. The upgrades will improve system reliability and reduce the risk of unplanned failures.
• Village of Pawling, $2.8 million in State and federal grants for development of five wells in the Lower Baxter Wellfield, construction of a treatment facility to treat the Lower Baxter and Umscheid Wells, and replacement of 2,000 linear feet of water main. The project is helping the Village provide an adequate and reliable supply of potable water to users. EFC previously awarded interest-free financing to the project.
• Town of Warwick, $16 million in State grant and interest-free financing for the planning, design, and construction of upgrades to the Wickham Sewer District No. 1 Wastewater Treatment Plant that was built in the 1980s. The project will replace many components in poor or non-operational condition and improve treatment to protect water quality in the Longhouse Creek.

New York City, $361 million in low-cost financing as part of EFC’s continued support of the following drinking water and sewer projects:

• Excavation and construction of Shafts 17B-1 and 18B-1, which are part of City Tunnel No. 3, Stage 2 in Queens. The project will provide redundancy for the water system and allow for better flow control and management.
• Construction of a second water conveyance tunnel from the Kensico Reservoir to the Catskill/Delaware Ultraviolet Disinfection Facility in Eastview. Completion of this project would enhance operational resiliency and redundancy for the water supply system.
• Improvements to the Hillview Reservoir that are necessary to cover the 900-million-gallon Hillview Reservoir, the final location where chemical treatment is provided upstream of the City’s distribution system, providing secondary treatment for at least 90% of the City’s water supply, and 50% of the City of Yonkers’ water supply.
• Design and construction of primary treatment improvements at the Wards Island Wastewater Resource Recovery Facility to help maintain water quality in the East River.
• Planning, design and construction of new backup power equipment at the Jamaica Wastewater Resource Recovery Facility to ensure uninterrupted treatment during emergencies.
• Planning, design and construction of improvements to the sludge thickening process at the Oakwood Beach Wastewater Resource Recovery Facility to enhance operations and reduce energy consumption to protect water quality in Raritan Bay.
• Design and construction of improvements to the Borden Avenue Pump Station to achieve water quality standards in the Dutch Kills stream, a tributary of Newtown Creek.
• Design and construction of the 235th Street Pump Station to reduce combined sewer overflows to the Hudson River.
• Design and construction of the rehabilitation of the 108th Street Pump Station to resolve operational issues and protect water quality in the Upper East River.
• Design and construction of main sewage pump replacements at the Coney Island Wastewater Resource Recovery Facility to protect water quality in Jamaica Bay.
• Design and construction of headworks improvements at the Port Richmond Water Resource Recovery Facility, replacing equipment that is 50 years old, to protect water quality in Kill Van Kull.

Long Island

• Town of Riverhead, $17.6 million in interest-free financing for the construction of sludge facilities at the water resource recovery facility and waste facility. The project willreduce operational expenses and environmental impacts to protect water quality in the Peconic River.
• Suffolk County Water Authority, $2.8 million in State grants for construction of granular activated carbon absorption vessels to remove PFAS from Well No. 3 at the Hawkins Road Well Field and Pump Station, and Well Nos. 2A and 3A at the Station Road well field.

North Country

• Town of Lorraine, $4.4 million in federal grant and low-cost financing for connection to the Village of Adams water system and installation of approximately 14,000 linear feet of water main and associated appurtenances to serve the new Water District No. 1. The project will provide public water to 63 mostly residential customers that currently rely on private wells.
• Town of North Elba, $5.4 million in low-cost financing for upgrades to the sewer district’s collection system. The project will reduce the amount of groundwater and stormwater entering the system and protect water quality in the Chubb River.

Southern Tier

• Town of Bainbridge, $4 million in State grant and interest-free financing for sewer improvements to make the system more resilient during wet weather events and protect water quality in the Susquehanna River.
• Town of Bath, $1.2 million in State grant for the design and construction of the Lake Salubria sewer extension which will ultimately take 127 failing septic systems out of service to protect Lake Salubria. EFC previously awarded low-cost financing and a federal grant to the project.
• Village of Painted Post, $8.2 million in State grant and low-cost financing for improvements at Well No. 4, which will improve water quality and quantity, and protect public health.

Western New York

• City of North Tonawanda, $1.5 million in State grant for the planning, design, and construction of new green infrastructure stormwater management practices and separate storm sewers along Oliver Street.