Competitive Grant Opportunity Incentivizes Municipalities Aiming to Reduce Costs and Lower Tax Burden

Efficiency Grant Will Help Enhance Productivity for Local Governments Facing Capacity Constraints 

Municipalities Across the State Can Now Apply for Funding Through this Program

Secretary Mosley said: “The Local Government Efficiency program has shown the capacity to offer great economic returns for localities and expanding it will bring even more savings to New Yorkers.”

The Department of State today announced that its popular Local Government Efficiency Grant (LGEG) program is again available to municipalities with innovative ideas for supporting a more affordable New York. Applicants may apply for funding to streamline government operations and services which reduce current or future costs, resulting in savings for local property taxpayers. The $8 million initiative incentivizes two or more local governments to team up to apply to plan for or implement shared services, consolidations, and dissolutions.

“Incentivizing municipalities to find new efficiencies is a great way to create more affordable communities,” said Secretary of State Walter T. Mosley. “The Local Government Efficiency program has shown the capacity to offer great economic returns for localities and expanding it will bring even more savings to New Yorkers.”

Through the LGEG, DOS is also aiming to assist local governments to address significant current and emerging challenges. In this current funding round, Priority Points will be given to: Regional Projects; Regional or Local Projects being implemented as part of a previous LGE planning grant or that was included in a Countywide Shared Services Initiative (CWSSI) plan; or Regional or Local Projects that aim to address:

• Information Technology Services (ITS), including Cybersecurity;
• Emergency Services;
• Countywide or Multi-County Code Enforcement or Municipal Planning;
• Water and/or Wastewater Management Systems; or
• Clean Energy Initiatives.

Some Recent Winning Communities Include:

• Town of Hunter partnering with Greene County, the Villages of Hunter and Tannersville, and the Hunter-Tannersville Central School District: Mountaintop Community and Municipal Services Center - $1,250,000
• Town of Carmel partnering with the Bedford, Bronxville, Eastchester, Mamaroneck, and Ossining Police Departments: Shared Police Communications Software - $1,200,000
• Orleans County: Orleans County EMS Study $52,859
• Tompkins County: Rapid Medical Response Team pilot program - $629,779
• Brockport Fire District partnering with the Bergen and Churchville Fire Departments, and the Murray Joint and Hamlin-Morton-Walker Fire Districts: Mutual Aid College Student Bunk-In Program: $490,500

The LGEG Request for Applications (RFA) and additional information may be found on the DOS website here. RFAs must be submitted by Wednesday, February 4, 2026 at 4 pm. 

The LGEG program is comprised of approximately $7.2 million available for implementation grants and $800,000 for planning grants. Implementation grants are capped at $250,000 for each participating municipality (not to exceed $1,250,000 in total) and require a 10% local match, while planning grants are capped at $20,000 per municipality (not to exceed $100,000 in total) and require a 50% match.

Two years ago, the LGEG program was doubled from $4 million to the current $8 million. Through the increase, DOS aims to enhance the impact for local governments facing capacity constraints. This year’s program again allows for Regional Projects led by Regional Planning Boards or eligible counties to serve as the leads on projects that involve four or more co-applicants. Additionally, DOS is offering a one-year Qualification Grant of up to $25,000 for Regional Planning Boards and eligible Counties to evaluate and select a project for future LGEG funding. 

Through its consolidation and efficiency programming, DOS has made 655 project awards, totaling over $121 million. The estimated long-term savings for local government recipients is over $680 million. 

Eligible Local Government entities are counties, cities, towns, villages, special improvement districts, fire districts, public libraries, association libraries, public library systems (if they advance a joint application on behalf of member libraries), water authorities, sewer authorities, regional planning and development boards, school districts, and Boards of Cooperative Educational Services (BOCES).

Applications are evaluated based on the potential return on investment (ROI), project need, service delivery benefits, operational changes, local and regional capacity, project readiness (ability to complete the project in 5 years) and the comprehensiveness and specificity of the work plan and budget. 

Local Government Efficiency Grants may be used to cover costs integral to project implementation including but not limited to: legal and consultant services; capital improvements and equipment; and transitional personnel costs not to exceed three years.