Governor Hochul hails historic $3.8 billion statewide investment that transforms water infrastructure and strengthens public health across New York in SFY 2025

New York – Governor Kathy Hochul marked a defining moment for New York’s environmental and public health agenda with the announcement of a sweeping $3.8 billion investment in local water infrastructure projects during State Fiscal Year 2025. The funding, detailed in a newly released New York State Clean Water Funding Report, underscores an unprecedented push to modernize aging systems, safeguard drinking water, and reduce the financial burden on local governments, families, and businesses across the state.

At the heart of the report is a striking figure: $1.1 billion in water quality grants delivered in a single fiscal year. That level of grant support has dramatically lowered project costs for municipalities while accelerating work on drinking water, wastewater, and stormwater systems. State officials say the scale and pace of investment reflect a coordinated, whole-of-government effort to protect public health, strengthen environmental resilience, and support economic growth through infrastructure upgrades that also generate good-paying jobs.

“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.”

The $3.8 billion total did not materialize overnight. It was made possible through a combination of sustained state commitments and a surge of federal support. Key contributors include Governor Hochul’s ongoing clean water grant initiatives, significant federal funding directed to New York’s State Revolving Funds through the Infrastructure Investment and Jobs Act, and state resources from the Clean Water, Clean Air, and Green Jobs Environmental Bond Act, as well as the Environmental Protection Fund. Together, these funding streams reflect a shared priority across agencies to protect natural resources while keeping essential services affordable for residents.

Much of the funding distribution is anchored by the Environmental Facilities Corporation (EFC), which serves as the state’s water infrastructure bank. EFC works in close partnership with the Departments of Environmental Conservation (DEC), Health (DOH), State (DOS), Agriculture and Markets (Ag&M), and the Division of Homes and Community Renewal (HCR). Each agency plays a role in tailoring grants and technical assistance to meet the diverse needs of communities, from dense urban centers to small rural towns. Additional support comes from the Division of Homeland Security and Emergency Services (DHSES), which administers Federal Emergency Management Agency (FEMA) programs that complement state investments by focusing on disaster recovery and long-term resiliency.

The scope of projects supported during SFY 2025 is broad and far-reaching. Hundreds of initiatives across New York received funding to upgrade treatment plants, replace or repair water mains, and modernize wastewater collection and sewer systems. Many projects focus on decommissioning or replacing failing septic systems, addressing long-standing issues that can threaten groundwater and surface water quality. Others target the treatment of public water supplies to remove emerging contaminants, an increasingly urgent concern for communities facing new environmental and health challenges.

Read also: Governor Hochul expands the state of emergency across all of New York as lake effect snow and high winds continue to threaten travel and public safety

Lead service line inventory and replacement projects also feature prominently, reflecting the state’s effort to eliminate a known public health risk. Stormwater management systems, land acquisition for source water protection, and improved salt storage and road salt reduction practices are part of the broader strategy to prevent pollution before it reaches waterways. Funding has also been directed toward dam safety rehabilitation and removal, fish and wildlife habitat restoration across aquatic, terrestrial, and marine systems, and nonpoint source pollution abatement. In flood-prone areas, resiliency improvements aim to reduce vulnerability to extreme weather events that are becoming more frequent and severe.

The Clean Water Funding Report covers the period from April 1, 2024, through March 31, 2025, and includes detailed metrics for the Clean Water and Drinking Water State Revolving Funds. These revolving funds remain New York’s primary tools for advancing clean water goals, offering low-cost financing and grants that allow local governments to move forward with projects that might otherwise be delayed or unaffordable.

In addition to the revolving funds, the report breaks down the $1.1 billion in grants delivered through a wide range of targeted programs. These include Water Infrastructure Improvement and Intermunicipal Water Infrastructure Grants, the Water Quality Improvement Projects Program, Lead Infrastructure Forgiveness and Transformation Grants, and the Septic System Replacement Fund. Other initiatives, such as Green Resiliency Grants, Community Development Block Grants, and the Green Innovation Grant Program, support projects that combine environmental protection with community development and innovation.

Agricultural and rural concerns are also addressed through programs like the Concentrated Animal Feeding Operation Enhanced Nutrient and Methane Management Program, while regional and planning needs are supported through Local Government Efficiency grants and assistance from the Appalachian and Northern Border Regional Commissions. Additional funding streams cover wastewater infrastructure engineering planning, non-agricultural nonpoint source planning, MS4 mapping, and the Clean Vessel Assistance Program, highlighting the comprehensive nature of the state’s approach.

Beyond water quality projects, DHSES provided an additional $647 million in FEMA grants during SFY 2025 for disaster recovery related to flooding, storms, and snow. Through the Public Assistance and Hazard Mitigation Assistance programs, flood-stricken municipalities received resources to repair damage while also reducing future risks. State officials note that these federal programs align closely with New York’s clean water and infrastructure goals by encouraging communities to integrate resiliency into planning, facility upgrades, and broader risk reduction strategies.

To ensure that smaller and disadvantaged communities are not left behind, EFC leads the Community Assistance Teams initiative. This effort brings together partner agencies to help local governments navigate funding opportunities and advance projects that improve water infrastructure where resources and technical capacity may be limited. DEC and DOH also provide free technical assistance through programs such as the Drinking Water Source Protection Program, helping municipalities safeguard their water supplies for the long term.

Environmental Facilities Corporation President and CEO Maureen A. Coleman emphasized the often-unseen impact of these investments. “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, 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.”

Read also: State Police assigned to Troop G report a series of notable DWI and impaired driving arrests across the region from December 17 through December 23

DEC Commissioner Amanda Lefton echoed that sentiment, pointing to the scale of the investment and its statewide reach. “Under Governor Hochul’s leadership, New York continues to prioritize investments to ensure all communities have access to clean water and resilient infrastructure. A record-high $3.8 billion in funding in 2025 allowed communities statewide to address and meet critical infrastructure needs, protect the environment, and promote good-paying jobs. These multi-agency investments, including funds from the Clean Water, Clean Air and Green Jobs Environmental Bond Act, are making a positive and lasting impact in our great state.”

From a public health perspective, the benefits are equally significant. New York State Health Commissioner Dr. James McDonald highlighted the role of infrastructure investment in ensuring safe drinking water. “This report highlights Governor Hochul’s unwavering commitment to providing safe drinking water to communities through historic investments that make critical drinking water infrastructure projects affordable. The Department of Health’s Bureau of Water Supply Protection will continue to partner with our State and local partners to provide assistance to communities that will protect public health for years to come.”

Secretary of State Walter T. Mosley stressed the connection between clean water, quality of life, and economic development. “Governor Hochul’s nation-leading investment in clean water infrastructure is helping communities large and small to undertake projects that are vital to public health, quality of life, environmental protection, and economic development. The Governor’s $1.1 billion in targeted grants are providing much-needed financial support to municipalities and public authorities for projects that are vital to economic development and community growth.”

Housing and community development agencies have also played a role in directing funds to areas of greatest need. Division of Homes and Community Renewal Commissioner RuthAnne Visnauskas noted that HCR’s Office of Community Renewal awarded more than $25 million through the Community Development Block Grant program. “HCR’s Office of Community Renewal awarded more than $25 million through the NYS Community Development Block Grant program to replace aging water and sewer lines, as well as upgrade public water infrastructure and wastewater treatment plants, which benefitted low-to-moderate income residents in counties, cities, towns and villages across New York. We are honored to join our state partners in contributing more than $1 billion in grants to make public water and sewer service safe, affordable and reliable – in turn making New York’s communities healthy places for families to live and thrive.”

Agriculture remains an important part of the clean water conversation, particularly when it comes to protecting waterways while supporting farm viability. Department of Agriculture and Markets Commissioner Richard A. Ball highlighted the balance struck by the funding package. “Under Governor Hochul’s leadership, New York agriculture is at the table when it comes to the preservation of our natural resources, including protecting our waterways statewide. It’s incredible to see $3.8 billion dedicated to the State’s clean water goals in just one fiscal year, highlighting New York’s commitment to these critical projects. I’m proud that some of the dollars invested will not only ensure the health of our environment but will also help farms remain competitive, profitable, and sustainable.”

With climate change driving more intense and frequent weather events, resiliency has become a central theme of infrastructure planning. Division of Homeland Security and Emergency Services Commissioner Jackie Bray emphasized the importance of preparing water systems for future challenges. “With extreme weather continuing to grow in both frequency and intensity, ensuring the resiliency of water systems is vital to the long term health of communities. Thanks to the leadership of Governor Hochul, communities throughout the state have been able to strengthen their infrastructure and implement mitigation measures to be able to withstand whatever Mother Nature sends our way.”

Environmental organizations and advocacy groups have largely praised the state’s approach. Nature Conservancy of New York Executive Director Bill Ulfelder pointed to the benefits of coordinated action across agencies. “The Nature Conservancy commends Governor Hochul for taking a whole-of-government approach to upgrading water infrastructure and investing $3.8 billion in clean water projects throughout the state. These projects safeguard clean drinking water, reduce costs for families and businesses, and prevent pollution from reaching our bays, harbors, lakes, and rivers. We are grateful for the leadership of Governor Hochul and members of the New York State Senate and Assembly for securing historic funding for New York communities through the Environmental Protection Fund, Clean Water Infrastructure Act, and Environmental Bond Act.”

Citizen advocates see the investment as both practical and preventative. Citizens Campaign for the Environment Executive Director Adrienne Esposito described the funding as a necessary response to aging systems statewide. “New York is a vast state with enormous infrastructure needs. From Montauk to Medina, municipalities have aging wastewater and drinking water facilities in need of significant upgrades and repairs. Funding these critical upgrades represents an investment of funds, not an expenditure of funds. One of the most important roles of government is to ensure the health and safety of the public, and clean water programs do just that. The public strongly supports this program because it’s successful in keeping our drinking water clean and affordable. We are thrilled with the progress New York is making to protect our water and public health. We congratulate Governor Hochul and the NYS Legislature in working collaboratively to accomplish such a monumental goal.”

Local governments, which often shoulder the responsibility of operating and maintaining water systems, say the state’s support has been crucial. New York State Association of Counties Executive Director Stephen J. Acquario highlighted the relief provided to taxpayers. “These historic investments are helping local governments meet their responsibility to deliver safe drinking water and reliable wastewater services in communities across New York. Governor Hochul’s constant commitment to water infrastructure needs enable local governments to modernize aging systems, address emerging challenges, and protect public health without placing unsustainable burdens on local taxpayers. We value this strong partnership with the State and look forward to continuing to work together to ensure clean, affordable water for all New Yorkers.”

Municipal leaders share that view. New York Council of Mayors Executive Director Barbara Van Epps said, “NYCOM applauds Governor Hochul for her continued investment in water infrastructure. Clean and safe water is a top priority for our members, and these grants play a critical role in supporting local officials in their efforts, while easing costs for taxpayers. NYCOM looks forward to continuing to work with the Governor and the State Legislature to strengthen public health, community resilience and quality of life across New York State.”

Utilities and industry groups see the funding as a turning point for modernization efforts. New York American Water Works Association Executive Director Jenny Ingrao-Aman called the investment unprecedented. “This level of investment in drinking water infrastructure is truly unprecedented and provides critical support to the public water utilities that deliver safe, reliable water to New Yorkers every day. Governor Hochul’s sustained focus on safe, clean, and affordable drinking water is remarkable, and these investments give utilities the resources they need to modernize aging infrastructure, address emerging contaminants, strengthen resiliency, and continue protecting public health in communities across the state.”

Looking ahead, New York’s commitment to water quality shows no signs of slowing. Governor Hochul has announced an additional $500 million allocation for clean water infrastructure in the FY26 Enacted Budget. With that funding, the state will have invested a total of $6 billion in water infrastructure since 2017, including $453 million in grants awarded by EFC in December 2025. State officials continue to encourage any community in need of assistance with water infrastructure projects to reach out to EFC for guidance and support.

As projects funded during SFY 2025 move from planning to completion, the impact of the $3.8 billion investment is expected to be felt across New York for decades. From safer drinking water and healthier ecosystems to more resilient communities and stronger local economies, the state’s record-setting commitment underscores the essential role of water infrastructure in daily life—and the long-term value of investing in it at scale.