New York Gov. Kathy Hochul announced more than $453 million in state grants earlier this month for local water and sewer infrastructure projects statewide, part of an expanded effort to modernize aging systems, protect public health and support economic growth.
The awards, delivered through the state’s Water Infrastructure Improvement Act (WIIA) and Intermunicipal Water Infrastructure Grants (IMG) programs, are expected to spur more than $1.3 billion in upgrades and create an estimated 20,000 jobs, while saving local ratepayers roughly $1.1 billion in construction costs.
The grants are part of a broader statewide strategy to address aging infrastructure, emerging contaminants such as per- and polyfluoroalkyl substances (PFAS) and affordability challenges for small, rural and disadvantaged communities. The funding is roughly evenly split, with $227.3 million allotted for 51 drinking water projects and $225.8 million for 32 sewer projects.
These projects include treatment plant upgrades, sewer district expansions and drinking water system modernizations. Highest funded projects include:
- Albany County — $25 million for Phase 1 of the North and South Treatment Plant Capital Improvement Program (WIIA).
- Orange County — $25 million for Sewer District #1 Harriman Wastewater Treatment Plant Improvements (WIIA).
- Erie County — $25 million for Phase 2 of Southtowns AWF Improvements (WIIA).
- City of Watertown — $24.3 million for the Watertown Water Treatment Plant Water Quality Improvements Project (IMG).
- Town of Tonawanda — $18 million for Water Treatment Plant Electrical Substation and Pump Improvements (IMG).
- Chautauqua County — $17.8 million for the South and Center Chautauqua Lake Sewer District Phase 3 Extension (WIIA).
- Cayuga County Water and Sewer Authority — $16.5 million for the Cayuga Lake Protection Project in Sewer District III (WIIA).
- Town of Trenton — $15.9 million for Wastewater Collection and Treatment Facilities (WIIA).
- City of Batavia — $12 million for Wastewater Treatment Plant Upgrades (IMG).
Many of these awards include enhanced funding provisions for small, rural and disadvantaged communities, allowing grants to cover a higher share of project costs to reduce financial burden on local governments and ratepayers. In some cases, the grants cover up to 50% of net eligible costs.
Officials say the upgrades will not only provide immediate economic benefits in the form of jobs and savings, but they also address long-term public health and environmental concerns, particularly by improving drinking water quality and protecting against contaminants like PFAS.
The New York State Environmental Facilities Corporation (EFC) administers the WIIA and IMG programs in coordination with the state Department of Health (DOH) and state Department of Environmental Conservation (DEC). EFC provides technical assistance and financial support to help municipalities plan, apply for and implement these complex infrastructure projects.
The latest awards bring the total WIIA and IMG funding to more than $3.4 billion statewide since 2015, underscoring New York’s ongoing investment in water and sewer infrastructure.
Photo by Engin Akyurt from Pexels
For more of the latest from the expansive government marketplace, check Government Market News daily for new stories, insights and profiles from public sector professionals. Check out our national contracting newsletter here.




