The Environmental Facilities Corporation (EFC) in New York State has executed more than $3.4 billion in financial assistance agreements for 328 local water infrastructure projects during the State Fiscal Year 2025, according to an announcement from Governor Kathy Hochul. This marks a 55 percent increase compared to the previous year and represents the largest single-year investment in water infrastructure by the state.
“With EFC’s record $3.4 billion investment, along with millions in additional State funds from partner state agencies, New York is delivering on its promise of affordable, reliable and safe water for all New Yorkers,” Governor Hochul said. “We’re transforming communities, protecting public health and ensuring every New Yorker can count on clean, safe water without breaking the bank.”
This funding was made possible through ongoing grant commitments at the state level and federal support via the Infrastructure Investment and Jobs Act. The financial backing strengthened New York’s State Revolving Funds—key programs that offer below-market-rate loans and grants to local governments for clean water initiatives.
EFC President and CEO Maureen A. Coleman stated, “Surpassing $3.4 billion in financial assistance this year reflects the leadership of Governor Hochul and EFC in delivering high-impact, cost-effective solutions for New York’s water infrastructure. Our ability to turn every federal dollar into three dollars through strategic leveraging means we’re not just investing more — we’re making projects affordable for communities, accelerating progress, and delivering lasting results across the state.”
Through leveraging federal capitalization grants with state matching funds, bond sales, and loan repayments, EFC reports that every federal dollar invested yields three dollars for projects statewide.
The new investments have been used to fund both sewer ($2.6 billion) and drinking water ($821 million) projects throughout New York. This includes replacing aging systems, modernizing treatment facilities, removing lead service lines using innovative repayment structures so some communities pay nothing locally upon completion of work.
Governor Hochul’s Community Assistance Teams have expanded technical support for municipalities since their launch in 2023; they helped secure over $591 million in low-interest financing plus $63 million in grants this fiscal year.
Green Resiliency Grants launched last year provided $60 million—nearly half directed toward flood-prone areas of New York City—to help mitigate stormwater runoff and expand green spaces as part of adaptation strategies funded partly by voter-approved environmental bonds.
Additional programs included Wastewater Infrastructure Engineering Planning Grants totaling $23.2 million since inception—enabling municipalities to plan fiscally sound upgrades—and bond transactions that generated more than $280 million in savings for ratepayers across multiple communities.
New York Department of Environmental Conservation Commissioner Amanda Lefton said, “Under Governor Hochul’s leadership, New York is making record investments to safeguard and enhance water quality, protect against future storms, and modernize infrastructure in communities throughout the state. DEC is proud to work with our partners across State government and local municipalities to improve infrastructure and protect our natural resources while ensuring affordability remains a focus.”
New York State Health Commissioner Dr. James McDonald added: “Under Governor Hochul’s leadership, New York State has made historic investments in safe drinking water, empowering communities to update aging infrastructure systems, replace lead service lines and combat emerging contaminants. The State Health Department’s Bureau of Water Supply Protection will continue to partner with the Environmental Facilities Corporation to secure financing options for municipalities, as cost should never be a barrier to the protection of public health.”
Secretary of State Walter T. Mosley said: “Successful community revitalization starts with resilient, affordable and sustainable water infrastructure. This unprecedented investment will deliver a myriad of public benefits including health, housing economic development fiscal stability higher quality life Water infrastructure is not just about pipes sewers it’s about people communities rely these investments realize vision healthier more vibrant future.”
Senator Charles Schumer remarked: “There is nothing more important than keeping New York’s water safe for our children seniors families Thanks billions federal funding I secured through Bipartisan Infrastructure Jobs Law New York has made record investments our water infrastructure keep our drinking water clean sewer systems modernized I’m grateful Governor Hochul’s work putting these federal dollars good use will always fight keep resources flowing upgrade our drinking water sewer systems”
Representative Paul Tonko commented: “Clean safe drinking water reliable water infrastructure are not luxuries wealthy few they are fundamental rights every American should enjoy That’s why I’ve worked hard throughout my career secure full federal funding State Revolving Funds which provide financing grants local municipalities launch critical drinking water sewer projects Today’s announcement shining example how state federal funds can combine deliver results neighborhoods bringing lasting benefits public health environmental protection economic growth communities here Capital Region across New York State I look forward seeing how this funding benefit New Yorkers years come I’ll continue fighting make certain every community has resources needs guarantee clean safe water all its residents”
State Senator Pete Harckham noted: “Access clean water basic human right ensuring affordability core responsibility government This historic $34 billion investment over past year represents unprecedented commitment our communities one that will improve public health modernize sanitation infrastructure create good-paying jobs spur economic growth I’m grateful Environmental Facilities Corporation Governor Hochul colleagues legislature prioritizing this critical issue making such transformative investment possible”
Assemblymember Deborah Glick stated: “Water infrastructure one most important impactful investments we can make environment health New Yorkers appreciate leadership Governor Hochul prioritizing this historic necessary investment into these critical clean water projects look forward continued level investment future”
The Nature Conservancy’s Bill Ulfelder said: “The Nature Conservancy applauds Governor Hochul…for investing billions in clean water infrastructure…These important investments include funding made possible by Clean Water Clean Air Green Jobs Environmental Bond Act passed by voters 2022 These critical funds protect clean drinking water improve quality life create jobs prevent pollution reaching bays harbors lakes rivers”
Adrienne Esposito from Citizens Campaign for Environment commented: “New York’s significant program repair upgrade…has created meaningful impacts lives everyday New Yorkers…historic program allowed communities fix old sewage plants obtain needed filtration systems toxic chemicals provided funding prevent polluted stormwater entering estuaries lakes rivers bays…”
Julie Tighe from NY League Conservation Voters added: “Water most precious resource…record investment reflects commitment kept demonstrable impact health well-being state’s residents visitors…applaud Governor Hochul her leadership ensuring every New Yorker access safe clean…”
Stephen J Acquario from NYS Association Counties said: “Through this funding counties municipalities able undertake transformative projects ensure families trust their drinking waters better protected flooding lakes rivers remain pristine…”
Applications are now open until September 12 for another round of Water Infrastructure Improvement Grants at www.efc.ny.gov as part of ongoing efforts underlined by a further allocation of $500 million announced in the FY26 Enacted Budget by Governor Hochul.
