New York Invests Record $3.4 Billion in Water Infrastructure

New York has achieved a significant milestone in public health and infrastructure, with the state announcing a record investment of $3.4 billion in water infrastructure projects during State Fiscal Year 2025. Governor Kathy Hochul revealed that the Environmental Facilities Corporation (EFC) has executed financial assistance agreements for 328 local projects, marking a remarkable 55 percent increase in funding compared to the previous year.

The governor’s office stated that this substantial investment is designed to make critical drinking water and sewer projects more affordable for New Yorkers. This funding not only aims to improve water quality but also ensures the protection of public health and the environment. Additionally, the initiatives are expected to generate approximately 30,000 jobs across the state, contributing to local economic growth.

Hochul emphasized the importance of this funding, stating, “With EFC’s record $3.4 billion investment, along with millions in additional State funds from partner state agencies, New York is delivering on its promise of affordable, reliable and safe water for all New Yorkers. We’re transforming communities, protecting public health and ensuring every New Yorker can count on clean, safe water without breaking the bank.”

Strategic Funding and Community Impact

The EFC’s investment is supported by Hochul’s ongoing commitment to grant funding for clean water initiatives, as well as federal funding through the Infrastructure Investment and Jobs Act. This financial backing has significantly bolstered the State Revolving Funds, which serve as New York’s primary mechanism for advancing clean water goals. The funds provide below-market interest rates and extended repayment periods, allowing communities to save on financing costs.

The repayments from loans to the EFC create a sustainable revenue stream, enabling continued financing for additional projects aimed at rehabilitating and modernizing aging infrastructure. “Surpassing $3.4 billion in financial assistance this year reflects the leadership of Governor Hochul and EFC in delivering high-impact, cost-effective solutions for New York’s water infrastructure,” said EFC President and CEO Maureen A. Coleman.

Through innovative financing strategies, the EFC has managed to convert every federal dollar into a threefold return on investment. For every dollar invested federally, New York generates $3 through state matching funds, bond sales, and loan repayments. This approach maximizes the federal impact and accelerates the progress toward building clean and resilient communities.

Key Funding Highlights and Community Benefits

The $3.4 billion investment reflects the cumulative impact of several funding announcements made by Hochul over the year. These announcements authorized municipal access to funds and were documented on the EFC’s Project Impact Dashboard, allowing the public to monitor local benefits. Notable highlights from this year’s funding report include:

– $2.6 billion dedicated to sewer infrastructure, which includes $530 million in federal funds from the Clean Water State Revolving Fund. These investments are pivotal in enhancing treatment plants and ensuring the reliability of existing systems.

– $821 million allocated for drinking water projects, incorporating $97 million in federal funds aimed at modernizing aging systems and replacing lead service lines, crucial for public health.

– The launch of Community Assistance Teams in 2023, which have facilitated over $591 million in low-interest financing and $63 million in grants to municipalities, helping them navigate the funding process effectively.

– Enhanced grants totaling $445 million awarded in November 2024, which support water infrastructure improvement projects, particularly in smaller and rural communities. These grants have been increased from covering 25 percent to 50 percent of eligible project costs to alleviate financial pressures on local ratepayers.

– The introduction of $60 million in Green Resiliency Grants as part of Governor Hochul’s strategy to adapt to extreme weather, aimed at reducing stormwater runoff and mitigating flooding, particularly in New York City.

Efforts to replace lead service lines have also been prioritized, with Hochul announcing $100 million in State Lead Infrastructure Forgiveness and Transformation Grants, targeting twelve communities and ensuring that these projects do not burden local ratepayers.

In addition, a series of bond transactions have generated over $280 million in savings for New York City ratepayers, further highlighting the state’s commitment to affordability and sustainable infrastructure.

“Under Governor Hochul’s leadership, New York is making record investments to safeguard and enhance water quality, protect against future storms, and modernize infrastructure in communities throughout the state,” stated Amanda Lefton, Commissioner of the New York Department of Environmental Conservation.

The state’s ongoing investment in water infrastructure not only addresses immediate needs but also positions New York to meet future challenges, ensuring that all communities have access to safe and affordable drinking water.