New York Invests Record $3.4B in Water Infrastructure Projects

New York Governor Kathy Hochul announced a historic investment of over $3.4 billion in water infrastructure projects for the State Fiscal Year 2025. This funding, provided through the Environmental Facilities Corporation (EFC), marks a significant 55 percent increase from the previous year, aimed at enhancing local drinking water and sewer systems across the state.

The financial assistance agreements cover 328 local projects designed to improve water quality, protect public health, and bolster the environment. This investment is expected to create approximately 30,000 jobs, contributing to local economic growth while ensuring that New Yorkers have access to safe and reliable water services.

Investment Breakdown and Impact

The record funding was facilitated by Governor Hochul’s commitment to clean water initiatives and federal backing through the Infrastructure Investment and Jobs Act. This support has strengthened New York’s State Revolving Funds, which serve as the primary financial tool for advancing clean water goals in the state.

The EFC’s investment strategy includes offering low-interest financing and grants to local governments. By providing below-market interest rates and extended repayment periods, communities can save significantly compared to traditional financing methods. Maureen A. Coleman, President and CEO of EFC, emphasized that “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.”

For every federal dollar invested, New York is able to leverage it into $3 through state matching funds and loan repayments, maximizing the impact of federal investments. This strategic financing approach underlines the importance of fully funded State Revolving Funds to meet the ongoing needs for infrastructure repair and modernization.

Key Highlights and Future Initiatives

The annual Program Metrics Report from EFC outlines several significant achievements from this year’s funding, including:

• $2.6 billion allocated for sewer infrastructure, with $530 million from federal funding.
• $821 million directed towards drinking water projects, including $97 million from federal sources.
• More than $591 million in low-interest financing and $63 million in grants awarded through Community Assistance Teams.
• $445 million in Water Infrastructure Improvement and Intermunicipal Water Infrastructure Grants.
• $60 million awarded for Green Resiliency Grants aimed at flood-prone communities.

These initiatives not only address immediate infrastructure needs but also contribute to long-term sustainability and resilience against climate-related challenges. The funding has enabled municipalities to prepare essential engineering reports and advance well-designed projects into construction.

Governor Hochul stated, “With EFC’s record $3.4 billion investment, New York is delivering on its promise of affordable, reliable, and safe water for all New Yorkers.” Her administration’s focus on clean water reflects a commitment to public health and environmental protection, ensuring that all communities can benefit from modern infrastructure.

As New York continues to invest in water infrastructure, the state aims to prevent costly system failures and alleviate financial burdens on utility customers. The ongoing collaboration between state agencies and local municipalities ensures that affordable financing options remain accessible, ultimately safeguarding public health for generations to come.