The Environmental Facilities Corporation (EFC) in New York State has executed over $3.4 billion in financial assistance agreements for 328 local water infrastructure projects during the 2025 fiscal year, according to an announcement from Governor Kathy Hochul. This marks a 55 percent increase in funding compared to the previous year.
Governor Hochul stated, “With EFC’s record $3.4 billion investment, along with millions in additional State funds from partner state agencies, New York is delivering on its promise of affordable, reliable and safe water for all New Yorkers. We’re transforming communities, protecting public health and ensuring every New Yorker can count on clean, safe water without breaking the bank.”
The EFC’s investments were supported by ongoing state grant commitments and federal resources provided through the Infrastructure Investment and Jobs Act. These funds have been directed into the State Revolving Funds, which serve as the main financing tool for clean water initiatives across New York. The program offers below-market interest rates and extended repayment periods to help municipalities save on debt service costs.
EFC President and CEO Maureen A. Coleman said, “Surpassing $3.4 billion in financial assistance this year reflects the leadership of Governor Hochul and EFC in delivering high-impact, cost-effective solutions for New York’s water infrastructure. Our ability to turn every federal dollar into three dollars through strategic leveraging means we’re not just investing more — we’re making projects affordable for communities, accelerating progress, and delivering lasting results across the state.”
Through various mechanisms such as state matching funds, bond sales, and loan repayments, each federal dollar invested yields a return of $3 toward clean water projects throughout the state.
Access to affordable financing has allowed communities to address aging infrastructure needs while reducing pressure on utilities to raise rates for residents already facing financial challenges.
The cumulative investment includes funding announcements made after each EFC Board of Directors meeting between April 2024 and March 2025. The public can track project benefits via EFC’s Project Impact Dashboard.
This year’s Program Metrics Report details that $2.6 billion was allocated for sewer infrastructure—supported by $530 million from federal sources—and $821 million went toward drinking water projects with $97 million from federal funds included. Investments ranged from constructing new treatment plants to rehabilitating existing systems statewide.
Governor Hochul’s Community Assistance Teams have also played a role since their launch in 2023 by helping municipalities secure more than $591 million in low-interest financing and $63 million in grants.
Additional highlights include:
– More than $445 million awarded through Water Infrastructure Improvement Grants.
– Enhanced grants totaling $127 million directed at small or rural community sewer projects.
– Over $66 million targeted at drinking water projects addressing emerging contaminants.
– Green Resiliency Grants launched with an initial round of $60 million focused on flood-prone areas; nearly half went to New York City.
– Wastewater Infrastructure Engineering Planning Grants have distributed over $23 million since inception.
– Lead service line replacement efforts received both state ($100 million) and federal ($240 million) support.
– Recent bond transactions generated over $280 million in savings for ratepayers across several communities including New York City.
State officials praised these investments’ impact on public health protection and environmental resilience:
New York Department of Environmental Conservation Commissioner Amanda Lefton said, “Under Governor Hochul’s leadership, New York is making record investments to safeguard and enhance water quality, protect against future storms, and modernize infrastructure in communities throughout the state. DEC is proud to work with our partners across State government and local municipalities to improve infrastructure and protect our natural resources while ensuring affordability remains a focus.”
New York State Health Commissioner Dr. James McDonald added: “Under Governor Hochul’s leadership, New York State has made historic investments in safe drinking water… The State Health Department’s Bureau of Water Supply Protection will continue to partner with the Environmental Facilities Corporation to secure financing options for municipalities…”
Secretary of State Walter T. Mosley noted: “Successful community revitalization starts with resilient, affordable and sustainable water infrastructure… Water infrastructure is not just about pipes and sewers — it’s about the people…”
Senator Charles Schumer credited federal funding secured through bipartisan legislation: “There is nothing more important than keeping New York’s water safe… Thanks to billions in federal funding I secured through the Bipartisan Infrastructure and Jobs Law… I’m grateful for Governor Hochul’s work putting these federal dollars to good use…”
Representative Paul Tonko emphasized access as a fundamental right: “Clean, safe drinking water … are fundamental rights that every American should enjoy…. Today’s announcement is a shining example of how state and federal funds can combine…”
Other officials echoed support for continued investment as vital for economic growth and public well-being.
Applications are open until September 12 for another round of Water Infrastructure Improvement Grants; information is available at www.efc.ny.gov. With an additional allocation announced by Governor Hochul bringing total investment since 2017 up to $6 billion—including new funding set aside under next year’s budget—New York continues its focus on improving statewide access to clean water solutions.
