$5.9 Billion in Grants and $4.7 Billion in Low-Cost Financing Awarded by the Hochul Administration to Make Projects Affordable for Communities 

New SFY 2026 Clean Water Funding Report Details Coordinated Efforts of Seven Agencies

The State of New York has invested $10.6 billion in local water infrastructure projects during the administration of Governor Kathy Hochul, a newly released Clean Water Funding Report shows. New York has delivered $5.9 billion in grants since 2021, including $1.3 billion in State Fiscal Year 2026 alone. This unprecedented investment is making projects affordable for New Yorkers and empowering communities to undertake hundreds of critical drinking water, sewer, and stormwater projects. These projects are improving water quality, safeguarding public health and the environment, supporting local economic growth, and contributing an estimated 170,000 jobs.

The $10.6 billion investment was made possible by:

• Governor Hochul’s continued grant funding commitments for clean water. Her landmark $3.75 billion five-year funding plan will build on this tremendous progress, with the first installment made available earlier this year.
• A surge of federal funding to the State Revolving Funds from the Infrastructure Investment and Jobs Act.
• State funding through the landmark Clean Water, Clean Air, and Green Jobs Environmental Bond Act.

Over $9.5 billion of the total $10.6 billion investment is administered by the Environmental Facilities Corporation, underscoring its role as New York State’s water infrastructure bank. The Departments of Environmental Conservation, Health, Agriculture and Markets, and State, and the Division of Homes and Community Renewal delivered $1 billion in grants through New York’s robust funding programs that help ensure communities can address their unique water infrastructure needs.

The funding report details investments from April 1, 2025, through March 31, 2026, benefiting hundreds of projects, including:

• Treatment plant upgrades and expansions
• New and repaired water mains
• New and improved wastewater collection and sewer systems, including the decommissioning or replacement of failing septic systems
• Treatment of public water supplies to remove emerging contaminants
• Lead service line inventory and replacement
• Stormwater management systems
• Land acquisition for source water protection
• Improved salt storage and road salt reduction practices
• Dam safety rehabilitation and removal
• Fish and wildlife habitat restoration, including aquatic, terrestrial, and marine systems
• Nonpoint source pollution abatement
• Resiliency improvements in flood-prone areas

The report breaks down the $1.3 billion in grants delivered through the State’s range of water infrastructure funding programs, including:

• Water Infrastructure Improvement and Intermunicipal Water Infrastructure Grants
• Water Quality Improvement Projects
• Lead Infrastructure Forgiveness and Transformation Grants
• Septic System Replacement Fund
• Green Resiliency Grants and the Green Innovation Grant Program
• Community Development Block Grant
• Local Government Efficiency and Appalachian and Northern Border Regional Commissions
• Agricultural Nonpoint Source Pollution Abatement and Control Program
• Private Well PFAS Testing and Mitigation Pilot Program
• Wastewater Infrastructure Engineering Planning Grants
• Non-Agricultural Nonpoint Source and MS4 Planning Grants
• Clean Vessel Assistance Program

In addition to grants, New York has provided $4.7 billion in low-cost loans through the State Revolving Funds for project construction over the past five years. Interest rates are below market rate, and with long repayment periods, this financial assistance provides significant savings to many communities compared to traditional financing.

New Yorkers can track projects benefiting from these investments using EFC’s project impact dashboard and DEC’s grants data portal.

Complementing the $1.3 billion in grants awarded for water quality projects in SFY 2026, the Division of Homeland Security and Emergency Services provided more than $600 million in grants for disaster recovery related to flooding, storms, and snow.  These federal programs support New York’s broader clean water and infrastructure goals by helping communities integrate resiliency into local planning, facility upgrades, and community-wide risk reduction strategies.

Environmental Facilities Corporation President and CEO Maureen A. Coleman said, “Water infrastructure work often happens out of sight, but its benefits impact every person in the State. Governor Hochul’s $10.6 billion investment is strengthening our communities, improving reliability, and setting a national standard for smart water investment. It also underscores Governor Hochul’s and EFC’s commitment to affordability, making sure communities can access safe, reliable water without facing prohibitive costs.”

Department of Environmental Conservation Commissioner Amanda Lefton said, “This year's Clean Water Funding Report underscores how Governor Hochul's leadership continues to make transformative investments in New York's water infrastructure to protect public health and the environment and help communities address decades of infrastructure needs. Through these collective and unprecedented investments in wastewater and drinking water systems, New York is building more resilient communities, improving water quality, reducing pollution, and enhancing sustainability to prepare for the challenges of a changing climate."

New York State Health Commissioner Dr. James McDonald said, “This report demonstrates Governor Hochul’s long-term commitment to keeping our communities up to date with infrastructure that provides safe and accessible drinking water. Working with our State partners and local governments, the Department of Health’s Bureau of Water Supply Protection is an important part of the team that delivers key resources to municipalities and assists local water systems in assessing and prioritizing their operational and maintenance needs to ensure public health is protected.”

Secretary of State Walter T. Mosley said, “New York State continues to make unprecedented investments in upgrading water infrastructure, and the results are a cleaner environment and a vibrant economy for communities around the state. Governor Hochul’s $10.6 billion investment in hundreds of critical drinking water, sewer, and stormwater projects are helping combat climate change and create jobs that translate into a better quality of life for all New Yorkers.”

State Agriculture Commissioner Richard A. Ball said, “Committing over $10 billion to New York State’s clean water goals in the last five years alone is no small feat. I am proud that part of this investment has been dedicated to helping our farmers implement best management practices that allow them to help protect our natural resources while remaining competitive, profitable, and sustainable. Our farmers have always been on the front lines of meaningful, sustainable efforts when it comes to the preservation of our natural resources, and this mission has only been strengthened under Governor Hochul’s leadership.” 

Division of Homeland Security and Emergency Services Commissioner Terry O’Leary said, “Protecting water and wastewater critical infrastructure has been a priority for Governor Hochul and I am proud the Division has helped play a key role in those efforts. By partnering with EFC, DEC, DOH and so many other state and local partners, we have strengthened the resiliency of physical and cybersecurity infrastructure to ensure communities have access to safe and reliable water systems.”