Albany Update

New York State Providing $121M in Funding To Modernize Public Transportation Services

ALBANY—New York State announced on Feb. 2 that $121 million in state funding is available to help counties, local municipalities, and regional authorities upgrade, enhance, and modernize their public transportation services through the Transit Ready NY program. 

Non-MTA transit providers are encouraged to apply for funding to support transformative capital projects that modernize transit facilities and infrastructure, enhance regional service coordination, improve access to services, and deploy new technology. Applications will be accepted through May 21, 2026.

Award selection will prioritize projects that meet statewide strategic objectives of increasing operational efficiency, supporting the regionalization of rural transit, and expanding transit service levels

Eligible project activities under the Transit Ready NY program include, but are not limited to, construction of public transit facilities like intercity bus stations, transit centers and mobility hubs.

In line with the governor’s nation-leading agenda to combat climate change by lowering emissions from the transportation sector, projects that reduce fleet emissions will also be prioritized. All projects must have a useful service life of 10 years or more.

Eligible project activities under the Transit Ready NY program include, but are not limited to:

  • Construction of public transit facilities like intercity bus stations, transit centers and mobility hubs.
  • Implementation of transit priority infrastructure on roadways.
  • Deployment of new technology for enhanced passenger experience and/or improved transit operations.
  • Improvement of pedestrian roadways for access to transit.
  • Implementation of stops, shelters, and street amenities.
  • Improvement, rehabilitation, and expansion of bus garages and facilities.

Administered by the New York State Department of Transportation, Transit Ready NY funding is open to counties and local municipalities designated as Pro-Housing Communities, as per New York State requirements. Additional information can be found on the Department of Transportation’s website.

NYC, Mid-Hudson Regions Land $127 Million In State Funding for Water, Sewer Projects

ALBANY—New York State announced on Jan. 22 that $288 million was made available to help communities across the state affordably undertake water and sewer infrastructure improvement projects. The Environmental Facilities Corporation Board of Directors approved low-cost financing and state and federal grants that empower local governments to advance crucial upgrades — such as replacing lead service lines and modernizing aging systems — without passing high costs on to ratepayers. 

The approved funding includes investments in New York City from the federal Infrastructure Investment and Jobs Act (IIJA) and Governor Hochul’s Lead Infrastructure Forgiveness and Transformation (LIFT) grant program. These investments are part of the $535-million statewide effort to help communities pay for lead service line inventory and replacement projects. These loan forgiveness grants help cover costs not fully paid for by federal grants, minimizing the financial burden on local ratepayers. 

The New York City and Mid-Hudson regions secured a combined $127.4 million in funding.

EFC’s Board approved funding from the Clean Water and Drinking Water State Revolving Funds — New York’s primary tool for financing sewer and water infrastructure. These funds, supported by both state and federal sources, offer low-interest financing to help communities afford essential projects. IIJA funding for water infrastructure is administered through the State Revolving Funds.

Funding was approved for the following projects in the Mid-Hudson and New York City regions:

Mid-Hudson

  • Village of Kiryas Joel in Orange County, $3.5 million in federal grant and interest-free financing for the construction of tertiary filtration improvements at the wastewater treatment plant.
  • Village of Liberty in Sullivan County, $9.9 million in state and federal grants and interest-free financing for the planning, design, and construction of upgrades to the wastewater treatment plant.

 New York City

  • $114 million in state and federal grants and interest-free financing, including loan forgiveness LIFT grants, for eight projects including replacement of 3,252 lead service lines in the Bronx, replacement of 456 lead service lines in Queens and replacement of 683 lead service lines in Brooklyn.

The EFC Board also took action to help ensure continued, long-term affordability of existing drinking water and sewer projects in New York City. The Board approved a $579-million bond sale for refinancing various drinking water and sewer projects and refunding certain prior bonds. Refundings are part of EFC’s proactive financial management to ensure projects remain cost-effective over the life of the financing and reduce debt service payments.

Published: February 17, 2026

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