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New York awards $250M to enhance water, sewer infrastructure statewide

March 18, 2026

The New York State Environmental Facilities Corporation Board of Directors has approved $250 million in funding for water and sewer infrastructure projects in communities across the state.  

The funding, which will be delivered in the form of low-interest loans and grants, will support projects ranging from lead pipe replacements to storm-resilience improvements. Officials say the financing structure is intended to help municipalities complete costly infrastructure upgrades while minimizing impacts on water rates. 

The single largest individual allocation in the package is $44 million for the Village of Saranac Lake in the North Country, which will fund planning, design and construction of improvements to the village’s sewer collection system and water pollution control plant. The state previously provided an Engineering Planning Grant to help Saranac Lake advance the project. 

Among the largest allocations is $20 million for resiliency projects in New York City through the state’s Green Resiliency Grants program, funded by the Clean Water, Clean Air and Green Jobs Environmental Bond Act of 2022. 

Another $71.4 million will support lead service line location and replacement projects through the state’s Lead Infrastructure Forgiveness and Transformation program. Projects approved in this round include work in cities such as Ogdensburg, Poughkeepsie and Rochester. The program provides loan-forgiveness grants to help municipalities remove and replace lead service lines. At least 4,100 known lead lines are expected to be replaced through the effort, along with additional lines identified during project work. 

Several drinking water and wastewater upgrades in communities statewide are also being financed through the Clean Water State Revolving Fund and Drinking Water State Revolving Fund. These programs provide more than $1 billion annually in financing and grants for municipal infrastructure projects, including replacement of aging water mains, treatment plant upgrades and other improvements to drinking water and wastewater systems. 

The $250 million package combines state grants with federal funding streams administered through the revolving fund programs, which are supported by the U.S. Environmental Protection Agency and have been expanded in recent years with funding from the Infrastructure Investment and Jobs Act. 

The Environmental Facilities Corporation is also accepting applications for $5.5 million in additional funding through its Wastewater Infrastructure Engineering Planning Grants and the SECURE cybersecurity grant program. Municipalities and eligible entities can apply through the agency’s website, and Community Assistance Teams are available to provide no-cost consultations to help local governments identify funding options and prepare applications. 

State officials say the funding approvals and ongoing grant programs are intended to help communities move critical water infrastructure projects forward while ensuring municipalities have access to the financing and technical support needed to plan and complete them. 


Image by Tom from Pixabay

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