New York allocates $135M for statewide upgrades in local drinking water infrastructure

James V. McDonald M.D., M.P.H. Health Commissioner at New York State Department of Health
James V. McDonald M.D., M.P.H. Health Commissioner at New York State Department of Health
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New York State has announced the allocation of $135 million to support water and sewer infrastructure projects in communities across the state. The funding, approved by the Environmental Facilities Corporation (EFC) Board of Directors, is designed to help local governments make necessary upgrades such as replacing lead service lines and removing contaminants from drinking water without significantly increasing costs for residents.

Governor Kathy Hochul stated, “From the water we drink to the places we swim, New Yorkers rely on strong and reliable water systems. These investments keep our water clean, our communities safe, and our costs low while building more sustainable and resilient infrastructure for the future.”

A portion of this funding includes a $19 million federal Infrastructure Investment and Jobs Act (IIJA) grant directed toward the Town of Southampton for a new wastewater collection system and treatment plant in Riverside. This investment aims to protect Long Island’s aquifer system and surrounding water bodies.

The EFC Board also approved a $2 million grant under Governor Hochul’s Lead Infrastructure Forgiveness and Transformation (LIFT) program for the Village of Bath in the Southern Tier. This grant will assist with replacing lead service lines as part of a larger statewide initiative to remove lead from drinking water systems.

Financing comes from both state and federal sources through New York’s Clean Water and Drinking Water State Revolving Funds. These funds offer low-interest loans to municipalities undertaking essential infrastructure projects. According to state officials, fully funded revolving funds are crucial for maintaining aging infrastructure, providing over $1 billion annually to communities throughout New York.

Board approval also included previously awarded grants from programs such as the Water Infrastructure Improvement program and three grants funded by the Clean Water, Clean Air, and Green Jobs Environmental Bond Act. Approval allows communities to move forward with agreements needed for project implementation.

Environmental Facilities Corporation President & CEO Maureen A. Coleman said, “The $135 million announced today is a significant investment in New York’s communities and environment. The State Revolving Funds and State water grants are proven programs that help communities meet their water infrastructure needs and plan for long-term success.”

New York State Department of Environmental Conservation Commissioner Amanda Lefton commented on the continued prioritization of these investments: “Under Governor Hochul’s leadership, New York continues to prioritize investments in water and sewer infrastructure to ensure all communities have access to clean water. The $135 million invested today delivers the resources municipalities need to develop, improve, and implement affordable projects to remove contaminants and improve aging sewers by leveraging the federal Infrastructure Investment and Jobs Act, Clean Water, Clean Air and Green Jobs Environmental Bond Act funds, and the State’s Lead Infrastructure Forgiveness and Transformation program. These actions address and meet critical infrastructure needs, protect the environment, and promote good-paying jobs statewide.”

New York State Health Commissioner Dr. James McDonald said: “This latest round of water infrastructure funding represents Governor Hochul’s continued commitment to safeguarding the public’s health by making it affordable for communities to eliminate lead from plumbing and remove emerging contaminants from drinking water. The Department’s Bureau of Water Supply Protection will continue to work with our state and local partners on investments that ensure water delivered to consumers here in New York State meets the highest standards.”

Secretary of State Walter T. Mosley added: “Governor Hochul continues to make key investments in drinking water and wastewater infrastructure to create healthy, resilient communities and clean waterways. The infusion of $135 million by the Environmental Facilities Corporation will help local communities advance critical projects with low-cost financing to develop stronger communities and a better quality of life for all New Yorkers.”

Senator Charles Schumer emphasized federal support: “Everyone deserves access to clean and modern water and sewer systems. Now, thanks to my Bipartisan Infrastructure & Jobs Law, millions are flowing to communities from Southampton to Syracuse to upgrade water infrastructure. These dollars will help give municipalities the support needed to modernize critical water systems. It also means jobs, jobs, jobs, uplifting our communities… I am proud to deliver this major funding…”

Senator Kirsten Gillibrand noted: “All New Yorkers deserve…safe, reliable water systems…This $135 million investment…will boost public health across our state…”

Representative John W. Mannion highlighted local impact: “It’s the role of government…to build…critical infrastructure that delivers clean water…I’m grateful…for supporting projects in Moravia, Owasco, [and] Syracuse…”

State Senator Peter Harckham remarked: “Investing in water infrastructure projects is key…municipalities statewide will upgrade water lines…[and] decrease contaminants…”

Approved funding supports projects across several regions including Central New York (e.g., Moravia upgrades), Finger Lakes (Rushville filtration improvements), Long Island (Southampton wastewater plant), Mid-Hudson (Cortlandt construction), Mohawk Valley (Oneonta treatment plant improvements), North Country (LeRay main installation), Southern Tier (Bath lead line replacement), Western New York (Chautauqua County system improvements).

Additionally, refinancing efforts were approved—such as $7 million in long-term interest-free financing for Chesterfield—to save ratepayers an estimated $11.3 million over 30 years.

In total since 2017—and including allocations like $500 million recently set aside—New York has invested approximately $6 billion into its clean water initiatives.



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