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New York State opens $425M funding round for water infrastructure projects

June 15, 2026

New York State is making $425 million available to upgrade drinking water and sewer system infrastructure for communities across the state. 

The Notice of Funding Opportunity (NOFO) fulfills a significant portion of the commitment made through the $3.75 billion water infrastructure investment plan included in the recently Enacted State Budget. Applications are due by July 27. 

The New York State Environmental Facilities Corporation (EFC) will deliver awards through the Water Infrastructure Improvement (WIIA) and Intermunicipal Water Infrastructure Grants (IMG) programs. 

Recipients will invest in modernizing aging infrastructure while tackling legacy issues that continue to plague the state’s water systems. These threats include lead service lines and emerging contaminants, both posing credible and ongoing risks to public health by polluting clean water sources. 

Entities eligible to apply for either program include: 

  • Counties. 
  • Cities. 
  • Towns. 
  • Villages. 
  • District corporations. 
  • County or town improvement districts. 
  • School districts. 
  • Indian nation or tribe. 
  • Public benefit corporations or authorities that are allowed to build and operate a water quality infrastructure project. 

All projects must prioritize water quality infrastructure, primarily at either a municipally owned sewage treatment works or public water system. These efforts may consist of building, replacing or repairing infrastructure; upgrading structures to comply with environmental and public health laws and regulations; or upgrading systems and implementing pilot technologies to address emerging contaminants. Recipients may also use funding for LSL inventory and replacement alongside other system upgrades to resolve combined and/or sanitary sewer overflow impacts caused by excessive rain. 

The EFC is placing extra emphasis on projects that identify and replace lead service lines, dedicating $127.5 million for those efforts. The state will also maintain enhanced grants for drinking water projects that align systems with emerging contaminant standards and for wastewater and sewer projects in small, rural and disadvantaged communities. 


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Adam Rollins

Adam Rollins brings his expertise as a Researcher and Writer to the Managing Editor role for several of SPI's key publications, including Government Contracting Pipeline, Texas Government Insider, and the latest addition, Government Market News. With a rich background as a freelance Content Specialist, Adam has honed a passion for learning and information gathering, delving into various industries. His research and writing have spanned a range of topics, from artificial intelligence (AI) technology, conservation, and project outsourcing, to managed IT services and software development.

Holding a bachelor's degree in English from Texas State University, Adam's proficiency in message development is complemented by his robust research skills and seasoned writing experience. These attributes make him an invaluable asset to SPI, ensuring the delivery of insightful and impactful content to the company's clientele.

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