State allocates $269M for local water, wastewater infrastructure projects

ALBANY | Gov. Kathy Hochul has announced $269 million was made available to help communities across the State affordably undertake water and sewer infrastructure improvement projects. The Environmental Facilities Corporation Board of Directors approved low-cost financing and State and federal grants that empower local governments to advance crucial upgrades — such as replacing lead service lines and removing emerging contaminants from drinking water — without passing high costs on to ratepayers. These investments protect public health and the environment, reduce future risks, and support good-paying jobs. "This investment is about making essential water improvements more affordable for communities across New York," Gov. Hochul said. "By lowering costs for local governments, we are helping ensure New Yorkers can rely on safe, clean water without facing added financial pressure. These upgrades also strengthen our long-term resilience, ensuring our water systems can withstand future challenges and remain sustainable for decades to come." The funding approved today includes investments for the Cities of Poughkeepsie and Troy from the federal Infrastructure Investment and Jobs Act (IIJA) and Governor Hochul's Lead Infrastructure Forgiveness and Transformation (LIFT) grant program. These investments are part of the $535 million Statewide effort to help communities pay for lead service line inventory and replacement projects. These loan forgiveness grants help cover costs not fully paid for by federal grants, minimizing the financial burden on local ratepayers. EFC's Board approved funding from the Clean Water and Drinking Water State Revolving Funds — New York's primary mechanism for financing sewer and water infrastructure. These funds, supported by both State and federal sources, offer low-interest financing to help communities afford essential projects. IIJA funding for water infrastructure is administered through the State Revolving Funds. Fully funded State Revolving Funds are necessary for New York to be prepared to meet the ongoing need for communities to repair, rehabilitate, and modernize aging infrastructure in the future. The State Revolving Funds deliver over $1 billion annually to New York communities and have been significantly bolstered by IIJA funding. By making clean water financing more accessible, these programs help ensure New Yorkers have access to safe drinking water, prevent infrastructure failures that threaten the environment, and avoid costly rate increases. EFC also approved previously awarded grants from the Water Infrastructure Improvement and Green Resiliency Grant programs, including five grants funded by the Clean Water, Clean Air, and Green Jobs Environmental Bond Act. Board approval is a critical step in the funding process. It allows communities to enter into an agreement and access these dollars for project implementation. The investment strategy of leveraging federal and State funds ensures every dollar goes further in protecting public health and modernizing aging infrastructure across the State. NORTH COUNTRY MUNICIPALITIES AND PROJECTS In the Village of Whitehall, $2.9 million in federal grant funds and low-interest financing for the planning, design, and construction of disinfection and other upgrades at the wastewater treatment plant. In the Town of Keene, $7.2 million in State grant money and low-cost financing for the installation of a new drinking water production well, rehabilitation of the existing treatment building, installation of water meters and installation of all required appurtenances to connect the new well to the treatment building and distribution system. The Town of Peru was given $25.6 million in State grant and low-cost financing for the planning, design and construction of wastewater treatment plant improvements. The Town of St. Armand received $2 million in low-cost financing for the planning, design, and construction of wastewater disinfection improvements. Based on current market conditions, these long-term financings are projected to save local ratepayers an estimated $18.8 million in interest payments over the life of the financings. Town of Keene Supervisor Joe Pete Wilson said, "The Town of Keene is thankful for the support of Governor Hochul and the Environmental Facilities Corporation. The funding awarded to the Keene Valley Water District is critical to our project which provides clean drinking water to the community as well as our school and senior housing facilities. This program of grants and low interest loans makes it possible for very small districts like ours to afford the high cost of infrastructure upgrades." Town of Peru Supervisor Craig Randall said, "Governor Hochul's announcement this morning regarding NYS Environmental Finance Corporation's approval of funding in the amount of $25.6 Million in support of the Town of Peru's replacement of its Wastewater Treatment Plant is welcome news. The Town has been operating this plant under consent orders since 2023 while it worked to secure funding that would allow the project to be done. The upgraded wastewater plant will serve the town of Peru for at least 40 years while also allowing for future growth as new users are added to the system."

Signup for our newsletter

State allocates $269M for local water, wastewater infrastructure projects

COMPANY

CUSTOMER SUPPORT

SUBMISSION FORMS

BEYOND THE NEWS