NY State Posts Record $3.4B Awards
In Water Infrastructure Funding in FY2025
ALBANY—New York State officials announced on Aug. 27 that the Environmental Facilities Corporation surpassed $3.4 billion in executed financial assistance agreements for 328 local water infrastructure projects across the state during State Fiscal Year 2025—representing a 55% increase in year-to-year funding.
The record investment is making needed improvement projects more affordable for New Yorkers and assisting local communities to undertake drinking water and sewer projects. These projects are designed to improve water quality, safeguard public health and the environment. State officials estimated that the support to local economic growth translates to an estimated 30,000 good-paying jobs. “These numbers reinforce EFC’s critical role as New York State’s water infrastructure bank,” state officials noted.
EFC’s historic investment was made possible by Gov. Hochul’s continued grant funding commitments for clean water, and federal funding through the Infrastructure Investment and Jobs Act (IIJA). This financial support bolstered the State Revolving Funds and accelerated progress on essential clean water and drinking water projects, supporting public health, environmental protection and resilience in communities statewide.
The State Revolving Funds are New York’s primary financial mechanism for advancing its clean water goals, providing financing and grants to local governments. State Revolving Fund interest rates are below market rate, and with long repayment periods, communities may save significantly on debt service compared to traditional financing. Repayments of principal and interest to EFC provide recurring revenue to EFC so it can offer financing to additional communities to rehabilitate, replace and modernize aging infrastructure in the State.
EFC said it delivers a 300% return on investment on the federal capitalization grants to the State Revolving Funds. For every federal dollar invested, New York turns that into $3, through state matching funds, bond sales and loan repayments—maximizing federal impact and fast-tracking progress toward clean, resilient communities.
EFC’s annual Program Metrics Report highlights the impact and momentum of the programs and funding categories. Highlights of this year’s report included:
• $2.6 billion in grants and low-interest financing for sewer infrastructure, includes $530 million in federal IIJA funding through the Clean Water State Revolving Fund.
• Investments supported construction of new treatment plants and rehabilitation of existing systems.
• Investments continue to span critical areas of need, ranging from the construction of new treatment plants to widespread rehabilitation efforts that extend the lifespan and reliability of existing systems.
• $821 million in grants and low-interest financing for drinking water projects, includes $97 million in federal IIJA funds through the Drinking Water State Revolving Fund.
The funding helps communities affordably invest in life-saving system improvements, modernizing aging systems, replacing lead service lines and tackling emerging contaminants statewide.
Published: September 3, 2025.