Governor Kathy Hochul has announced a $3.8 billion investment in local water infrastructure projects across New York State for the 2025 fiscal year. According to the newly released New York State Clean Water Funding Report, the state delivered $1.1 billion in water quality grants during a single fiscal year, aiming to lower costs for local governments, families, and businesses.
“New York continues to set a national standard for water infrastructure investment that keeps water rates affordable for our communities,” Governor Hochul said. “We’re beginning to see tremendous progress as supported projects are completed and deliver benefits where they’re needed most.”
This record funding is attributed to ongoing state grant commitments for clean water, increased federal funding through the Infrastructure Investment and Jobs Act, and additional state support from initiatives such as the Clean Water, Clean Air, and Green Jobs Environmental Bond Act and the Environmental Protection Fund. The approach reflects coordinated efforts among multiple agencies including the Environmental Facilities Corporation (EFC), Departments of Environmental Conservation (DEC), Health (DOH), State (DOS), Agriculture and Markets (Ag&M), Division of Homes and Community Renewal (HCR), and Division of Homeland Security and Emergency Services (DHSES).
The investment supports hundreds of projects statewide such as treatment plant upgrades, new or repaired water mains, improved wastewater collection systems, treatment of public supplies for contaminants, lead service line replacements, stormwater management improvements, dam safety work, habitat restoration efforts, pollution abatement measures, resiliency upgrades in flood-prone areas, and more.
The report details investments made between April 1, 2024 and March 31, 2025 through key programs like the Clean Water and Drinking Water State Revolving Funds. These funds are central tools for advancing New York’s clean water goals by providing low-cost financing and grants to municipalities.
The $1.1 billion in grants were distributed via various programs including Water Infrastructure Improvement Grants, Water Quality Improvement Projects Program, Lead Infrastructure Forgiveness Grants, Septic System Replacement Fund, Green Resiliency Grants, Community Development Block Grant program administered by HCR—benefitting low-to-moderate income residents—and others.
In addition to these allocations for water quality projects, DHSES provided an extra $647 million in FEMA disaster recovery grants related to flooding and severe weather during SFY 2025. These resources assist municipalities in reducing vulnerability to storms by supporting local planning integration of resiliency measures.
State agencies also offer technical assistance programs such as DEC’s Drinking Water Source Protection Program to help municipalities safeguard drinking water supplies.
Environmental Facilities Corporation President Maureen A. Coleman stated: “Water infrastructure work often happens out of sight, but its benefits impact every person in the State. This $3.8 billion investment is strengthening our communities… It also underscores Governor Hochul’s and EFC’s commitment to affordability…”
Department of Environmental Conservation Commissioner Amanda Lefton commented: “Under Governor Hochul’s leadership… A record-high $3.8 billion in funding in 2025 allowed communities statewide to address critical infrastructure needs…”
New York State Health Commissioner Dr. James McDonald noted: “This report highlights Governor Hochul’s unwavering commitment… The Department of Health’s Bureau of Water Supply Protection will continue…to provide assistance…”
Secretary of State Walter T. Mosley added: “Governor Hochul’s nation-leading investment…is helping communities large and small undertake projects that are vital…”
Division of Homes and Community Renewal Commissioner RuthAnne Visnauskas explained: “HCR’s Office…awarded more than $25 million through the NYS Community Development Block Grant program… We are honored to join our state partners in contributing more than $1 billion in grants…”
Department of Agriculture and Markets Commissioner Richard A. Ball said: “Under Governor Hochul’s leadership…It’s incredible to see $3.8 billion dedicated… I’m proud that some dollars invested will not only ensure health…but also help farms remain competitive…”
Division of Homeland Security Commissioner Jackie Bray remarked: “With extreme weather continuing…ensuring resiliency is vital…communities throughout the state have been able to strengthen their infrastructure…”
Nature Conservancy Executive Director Bill Ulfelder stated: “The Nature Conservancy commends Governor Hochul for taking a whole-of-government approach…investing $3.8 billion in clean water projects throughout the state…”
Citizens Campaign Executive Director Adrienne Esposito said: “…Funding these critical upgrades represents an investment… One of government’s most important roles is ensuring health…and clean water programs do just that…”
New York State Association of Counties Executive Director Stephen J. Acquario said: “These historic investments are helping local governments meet their responsibility…”
New York Council of Mayors Executive Director Barbara Van Epps commented: “NYCOM applauds Governor Hochul for her continued investment…”
New York American Water Works Association Executive Director Jenny Ingrao-Aman concluded: “This level of investment…is truly unprecedented…”
Looking ahead, an additional $500 million was allocated for clean water infrastructure in New York’s FY26 Enacted Budget, bringing total investments since 2017 up to $6 billion—including recent December 2025 grant awards by EFC totaling $453 million.
