New York State has announced a $3.8 billion investment in local water infrastructure projects for State Fiscal Year 2025. According to a newly released Clean Water Funding Report, the state delivered $1.1 billion in water quality grants within a single fiscal year, aiming to reduce costs for local governments, families, and businesses.
Governor Kathy Hochul stated, “New York continues to set a national standard for water infrastructure investment that keeps water rates affordable for our communities. We’re beginning to see tremendous progress as supported projects are completed and deliver benefits where they’re needed most.”
The funding comes from multiple sources, including ongoing state grant commitments, federal support through the Infrastructure Investment and Jobs Act, and state programs such as the Clean Water, Clean Air, and Green Jobs Environmental Bond Act and the Environmental Protection Fund. The Environmental Facilities Corporation (EFC) manages much of this funding as New York’s water infrastructure bank.
A range of agencies contributed expertise and resources to these efforts: 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). These organizations help address various needs across communities statewide.
Projects supported by this investment include treatment plant upgrades, new or repaired water mains, improved wastewater collection systems, removal of contaminants from public supplies, lead service line replacement, stormwater management systems, land acquisition for source protection, dam safety improvements, habitat restoration efforts, nonpoint source pollution abatement measures, and resiliency enhancements in flood-prone areas.
The report covers investments made between April 1, 2024 and March 31, 2025. It details how the State Revolving Funds—New York’s main tool for advancing clean water goals—provided low-cost financing and grants to local governments.
In addition to the $3.8 billion dedicated to water quality projects in SFY 2025, DHSES provided $647 million in FEMA grants for disaster recovery related to flooding and severe weather events. These funds aim to help municipalities integrate resiliency into planning and facility upgrades.
Community Assistance Teams led by EFC work with partner agencies to help small or disadvantaged communities access funding. DEC and DOH also offer technical assistance through programs like the Drinking Water Source Protection Program.
Environmental Facilities Corporation President Maureen A. Coleman said: “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.”
Department of Environmental Conservation Commissioner Amanda Lefton added: “Under Governor Hochul’s leadership…a record-high $3.8 billion in funding in 2025 allowed communities statewide to address…critical infrastructure needs…and promote good-paying jobs.”
Health Commissioner Dr. James McDonald noted: “This report highlights Governor Hochul’s unwavering commitment to providing safe drinking water…through historic investments that make critical drinking water infrastructure projects affordable.”
Secretary of State Walter T. Mosley said: “Governor Hochul’s nation-leading investment in clean water infrastructure is helping communities large and small…undertake projects that are vital to public health…and economic development.”
Division of Homes and Community Renewal Commissioner RuthAnne Visnauskas stated: “HCR’s Office of Community Renewal 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…making New York’s communities healthy places for families to live and thrive.”
Department of Agriculture and Markets Commissioner Richard A. Ball commented: “Under Governor Hochul’s leadership…It’s incredible to see $3.8 billion dedicated to the State’s clean water goals in just one fiscal year…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…”
Division of Homeland Security Commissioner Jackie Bray remarked: “With extreme weather continuing…ensuring the resiliency of water systems is vital…Thanks to the leadership of Governor Hochul…communities throughout the state have been able to strengthen their infrastructure…”
Nature Conservancy Executive Director Bill Ulfelder said: “The Nature Conservancy commends Governor Hochul for taking a whole-of-government approach…These projects safeguard clean drinking water…reduce costs…and prevent pollution…”
Citizens Campaign Executive Director Adrienne Esposito stated: “Funding these critical upgrades represents an investment…One of the most important roles of government is…clean water programs do just that…We congratulate Governor Hochul…”
New York Association of Counties Executive Director Stephen J. Acquario said: “These historic investments are helping local governments meet their responsibility…Governor Hochul’s constant commitment enables local governments…to modernize aging systems…”
New York Council of Mayors Executive Director Barbara Van Epps commented: “NYCOM applauds Governor Hochul for her continued investment in water infrastructure…”
New York American Water Works Association Executive Director Jenny Ingrao-Aman added: “This level of investment in drinking water infrastructure is truly unprecedented…and provides critical support…the resources they need…”
Looking ahead into FY26 as announced by Governor Hochul earlier this year, an additional $500 million has been allocated for clean water infrastructure projects—bringing total state investments since 2017 up to $6 billion.