New York is providing $340 million in funding for projects that improve drinking water quality across the state. The new investments, administered by the Environmental Facilities Corporation (EFC), will help local and regional municipalities get shovels in the ground to enhance water and sewer infrastructure.
“New York State is continuing its historic investments in clean water infrastructure because every New Yorker deserves access to safe, affordable drinking water,” Gov. Kathy Hochul said. “These investments are not just about upgrading pipes and treatment plants; they are about safeguarding public health, boosting local economies and ensuring the long-term well-being of our communities.”
This round of funding will include both low-cost financing and grants aimed at improving water and sewer systems, helping municipalities from New York City to upstate communities enhance their water quality and environmental sustainability.
The largest investment from this round of EFC funding, $250 million, will support three drinking water projects in New York City. $100 million in low-cost financing will be allocated to the city for the construction of a second drinking water conveyance tunnel from the Kensico Reservoir to the Catskill/Delaware Ultraviolet Disinfection Facility in Eastview.
The second and third New York City projects, each slated to receive $75 million in low-cost financing, will improve drinking water systems and construct chemical additional facilities at the Hillview Reservoir while excavating and developing Shafts 17B-1 and 18B-1 at City Tunnel No. 3.
The remaining EFC funding will be distributed to projects in several counties and regions, seeking to advance drinking water, distribution, sewer and main line initiatives throughout the state.
The approved funding will back a range of projects that address critical needs such as wastewater management, water distribution and system upgrades. The highest-funded of these projects, respective funding allocations and project briefs are listed below:
- Canton – $13.47 million in interest-free financing and grants to plan, design and construct improvements to the Newton Falls Wastewater Treatment Plant
- Theresa – $8.1 million in low-cost financing and grants to plan, design and construct a collection system for the wastewater treatment plant and other improvements
- Concord – $6.07 million in financing and grants for the Kissing Bridge and Craneridge Wastewater Treatment Plants consolidation project
- Chautauqua – $5.4 million in federal and state grants to design and construct the Sewer District No. 1 extension for the Shorelands area
- Bethany – $5 million in grants to form new Water District No. 5 to serve approximately 1,000 residents
- Oswego – $4.4 million in interest-free financing for upgrades to the aeration system at the Eastside Wastewater Treatment Plant
- West Seneca – $3.8 million in grants to construct improvements to sanitary sewers in Sewer Districts 5 and 13
- Mohawk Valley Water Authority – $3 million to construct new drinking water transmission mains from Hinckley Reservoir to the water treatment plant
As part of this announcement, EFC will deliver more than $22 million in grants to local municipalities through the Water Infrastructure Improvement Program, which leverages both state and federal funding for water projects.
New York’s water infrastructure investment will also include a reevaluation of several existing projects financing to achieve long-term debt savings. EFC anticipates these actions will save over $36 million on existing debts.
EFC will assess three projects focused on planning, designing and constructing water treatment plants in Leroy, Crown Point and Wellsville. The two remaining projects set to be evaluated will encompass drinking water projects in Oneonta and a sewer overflow abatement project in Troy, Albany and Cohoes.
Since 2017, New York has invested a total of $6 billion in water infrastructure and projects to ensure residents have safe, reliable drinking water. The state is looking to expand water investments for fiscal year 2026, including $500 million allocated for clean water infrastructure.
EFC is currently accepting applications for two grant programs looking to improve water infrastructure and wastewater systems – the Green Innovation Grant Program and the Wastewater Infrastructure Engineering Planning Grants Program. The application deadline for both programs will be April 11.
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