Albany Update
$425 Million in State Grants Available To Fund Local Water, Sewer Upgrades
ALBANY—New York State officials announced on June 10 the launch of the state’s next round of water infrastructure funding, delivering on its landmark $3.75-billion commitment in the newly Enacted State Budget. There is $425 million available to help communities affordably upgrade the drinking water and sewer systems that New Yorkers depend on every day.
This increased investment will allow local governments to continue modernizing aging infrastructure and tackling legacy threats such as lead service lines and emerging contaminants, ensuring that New York remains a national leader in protecting its abundant water resources and delivering clean, safe drinking water.
“Investing in water infrastructure is an investment in the future of every New Yorker,” Gov. Kathy Hochul said. “My administration will continue ensuring communities have the financial support and tools they need to get these projects completed. By helping local governments replace aging infrastructure, remove lead service lines and address emerging contaminants, we are protecting public health while keeping these critical investments affordable for taxpayers and ratepayers.”
Applications for the Water Infrastructure Improvement and Intermunicipal Water Infrastructure Grants are now available on the New York State Environmental Facilities Corporation’s website. Local governments and public authorities are encouraged to apply. EFC’s Community Assistance Teams are available to provide one-on-one consultations to help municipalities prepare strong applications.
The funding includes: $127.5 million allocated for projects that identify and replace lead service lines.
Enhanced grants will continue for drinking water projects that bring systems in compliance with the state’s strict standards for emerging contaminants. Enhanced grants will also continue for wastewater and sewer projects in small, rural, and disadvantaged communities.
Additionally, $78 million for water quality improvement and protection and planning projects is currently available through DEC’s Water Quality Improvement Project and Non-Agriculture Nonpoint Source and Municipal Separate Storm Sewer System Planning Grant programs via the Consolidated Funding Application.
This year, at least $75 million is available through DEC’s Water Quality Improvement Project (WQIP) program and up to $3 million is available through DEC’s Non-Agriculture Nonpoint Source and Municipal Separate Storm Sewer System (MS4) Planning Grant (NPG) program. Applications for these grants are available through the New York State’s Consolidated Funding Application (CFA) through July 31, 2026, at 4 p.m.
In WQIP, maximum grant awards range from $100,000 to $15 million depending on the project type and population served, as identified in the application. Municipalities, including Indian Nations, Soil and Water Conservation Districts, and not-for-profit corporations are eligible to apply. Nine different project types are available for implementation funding in 2026, including: wastewater treatment improvement, including abatement of combined sewer overflows; non-agricultural nonpoint source pollution abatement and control, including green infrastructure projects; vacuum trucks for municipal separate storm sewer systems; land acquisition for drinking water source water protection; salt storage and road salt reduction practices; dam safety repair, rehabilitation, and removal; aquatic connectivity; Marine District habitat restoration; fish and wildlife habitat restoration and enhancement and landfill leachate treatment.
In NPG, maximum grant awards range from $50,000 to $75,000 for the Nonpoint Source Planning category depending on the report type, $75,000 to $400,000 for the MS4 Mapping category depending on whether the application is on behalf of a collaborative, as identified in the program overview, and up to $50,000 for MS4 Stormwater Management Program planning. There is no minimum award amount. Municipalities, including Indian Nations and Soil and Water Conservation Districts, are eligible to apply for this opportunity.
Any community needing assistance with water infrastructure projects is encouraged to contact EFC. New Yorkers can track projects benefiting from EFC’s investments using the interactive project impact dashboard.
Published: June 18, 2026