Governor Hochul announces nearly $26 million investment to upgrade Washington County water infrastructure and support future business and housing growth

Albany, New York – Governor Kathy Hochul has announced nearly $26 million in state funding to improve critical water and sewer infrastructure in Washington County, an investment officials say will help communities overcome long-standing wastewater challenges and create new opportunities for economic growth.

The funding will support major infrastructure projects in the Village of Fort Edward and the Town of Kingsbury’s Village of Hudson Falls. The improvements are expected to address sewer capacity problems that have limited business expansion, slowed housing development, and prevented communities from reaching their full economic potential.

State officials said reliable water and wastewater systems are essential for attracting new businesses, supporting existing employers, and allowing communities to grow. The newly announced funding will help local governments complete projects that have been delayed because of high costs and limited local resources.

“I’ve worked in local government and have seen firsthand just what additional state assistance can do for small towns and villages,” Governor Hochul said. “Our communities deserve to be heard, seen and uplifted, and this funding will help communities across Washington County continue to develop and make necessary infrastructure improvements to allow local businesses to grow and residents to prosper.”

The largest portion of the investment, $14.5 million, will go toward improvements in the Village of Fort Edward. The project will focus on upgrading aging sewer and water systems while preparing the community for future commercial and residential development.

Planned work includes relocating existing sewer lines, replacing water lines, separating stormwater from wastewater systems, eliminating combined sewer overflows, and completing additional upgrades designed to improve system reliability.

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Officials explained that Fort Edward has faced development challenges because the Washington County wastewater treatment plant currently has limited capacity. The lack of available capacity, combined with insufficient funding for necessary improvements, has restricted the expansion plans of one of the region’s largest employers and created obstacles for nearby businesses and housing projects.

The new state investment is expected to help remove those barriers and allow Fort Edward to pursue new opportunities. The funding also builds on a previous investment of nearly $4.74 million through the FAST NY program awarded to the Counties of Warren and Washington Industrial Development Agency.

That FAST NY grant is supporting the redevelopment of Canalside Energy Park, a waterfront brownfield site that officials hope will become a center for strategic industries and job creation. Together, the two investments are expected to encourage industrial, commercial, and residential development while strengthening the community’s long-term water and sewer infrastructure.

Another $11.4 million will support infrastructure improvements in the Town of Kingsbury and Village of Hudson Falls. The funding will be used for a major storm-sewer separation project aimed at improving wastewater capacity and supporting future development.

The project will remove stormwater flows from the sanitary sewer system, reduce unnecessary pressure on wastewater infrastructure, and create an inflow and infiltration offset. Officials said these improvements are necessary to allow additional housing and business projects to move forward.

In Kingsbury, limited capacity at the Washington County wastewater plant has already affected planned development. According to state officials, at least one proposed housing project was unable to proceed after a sewer hookup moratorium was put in place because of capacity concerns.

The newly announced funding will allow design work to continue and help complete improvements that could open the door for future residential and commercial investment.

Empire State Development President, CEO and Commissioner Hope Knight said strong infrastructure plays a key role in helping communities succeed.

“Strong infrastructure is the foundation for communities’ sustained growth. This critical funding for Fort Edward and Kingsbury will remove barriers to new housing, business expansion, job creation, and unleash new economic opportunity in Washington County. Thanks to Governor Hochul’s leadership, New York continues to invest in the long-term potential of our diverse regions across the state.”

Local leaders praised the announcement, saying the investment represents an important step toward strengthening Washington County’s economy.

Assemblymember Carrie Woerner highlighted the importance of state support for communities that have struggled with limited commercial investment.

“I am grateful to Governor Hochul for delivering this truly significant financial investment to Washington County. I worked closely with her staff to advocate for these infrastructure projects which will lay the foundation for private investment to grow manufacturing jobs in a county where the economy is struggling with a lack of commercial investment. I am also grateful to Stephen Acquario, NYS Association of Counties, for lending his advocacy to my efforts to bring forward the request for this investment.”

Washington County Board of Supervisors Chair Robert Henke also thanked state officials and regional partners for helping bring the funding to the county.

“Thank you to Governor Kathy Hochul, Assemblymember Carrie Woerner, and NYS Association of Counties for working together to provide these critical funds to Washington County. With their partnership, Washington County will be able to alleviate infrastructure challenges and position ourselves for positive economic development. These investments recognize, and realize, the potential for business and job growth within the region, and we look forward to seeing that come to fruition. Washington County welcomes this announcement and again extends our gratitude to Governor Hochul and Assemblymember Woerner for delivering.”

The announcement is part of Governor Hochul’s broader effort to support community-driven economic development across New York. State officials pointed to several programs designed to help communities prepare for future investment, including the County Infrastructure Grant Program, which was launched in November 2024 and is administered by Empire State Development.

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The first round of that program awarded more than $36 million to support 48 projects across the state. A second round of awards is expected to be announced soon.

Additional initiatives, including FAST NY and POWER UP, are also focused on creating development-ready sites that can attract businesses in growing industries and support new employment opportunities.

Stephen J. Acquario, Executive Director of the New York State Association of Counties, said rural communities need continued investment to remain competitive and support residents.

““Counties applaud Governor Kathy Hochul and Assemblywoman Carrie Woerner for their leadership and commitment to investing in the rural communities that are essential to New York’s economic future. These investments allow counties to undertake infrastructure projects that local resources alone cannot support and create the conditions for new housing, business expansion, and job creation while strengthening the infrastructure residents rely on every day. Rural counties like Washington provide the foundation for New York’s agricultural economy, outdoor recreation and tourism, and regional workforce. Investing in their success is an investment in the strength and resilience of the entire state.”

Officials said the Washington County projects demonstrate how infrastructure investments can have effects beyond pipes and treatment systems. By improving essential services, communities can attract businesses, support housing growth, create jobs, and build stronger foundations for future generations.