New York State allocates $340 million in financial assistance for water infrastructure projects

New York Governor Kathy Hochul has announced the approval of $340 million in financial assistance for water infrastructure projects across New York State. The funding, approved by the Environmental Facilities Corporation (EFC), will support both ongoing and new projects, ensuring access to clean drinking water and improving wastewater treatment facilities.

“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 EFC has authorized grants for local governments through the Clean Water and Drinking Water State Revolving Funds, which combine state and federal funding to support community water infrastructure projects. Approval from the EFC Board is a key part of the funding process, enabling communities to move forward with using the funds for project execution.

Among the funded projects, some of the highest valued ones include water infrastructure projects in New York City for a total of $250 million. This funding includes $100 million in financing for the Kensico-Eastview Connection project, the largest water-supply tunneling effort in decades, which will improve flexibility between vital water-supply facilities serving over 9 million residents. Additionally, $75 million will support drinking water system improvements at the Hillview Reservoir, focusing on the construction of chemical addition and flow control facilities. Another $75 million will be allocated to the excavation and construction of Shafts 17B-1 and 18B-1, key components of City Tunnel No. 3, Stage 2 in Queens.

Significant funding was also approved for projects by a large list of local authorities. They include the Village of Canton, which will receive $13.475 million in combined interest-free financing and a state grant to upgrade its wastewater treatment plant; the Town of Chautauqua, which has secured $5.4 million to extend sewer service in the Shorelands area; the Town of Bethany, which has been awarded $5 million to form a new water district, the Mohawk Valley Water Authority, which will use $3 million to install new drinking water transmission mains, and West Seneca, receiving $3.8 million to improve sanitary sewers in two local districts, among others.

The EFC Board also acted to maintain the affordability of ongoing projects, approving over $35 million in long-term financing to support initiatives carried out by local communities.

New York State has demonstrated strong leadership in water infrastructure investments, allocating more than $2.2 billion in financial assistance for local projects in the 2024 fiscal year alone. With $500 million dedicated to clean water infrastructure in Governor Hochul’s proposed FY26 Budget, the total investment since 2017 will reach $6 billion.