The Peru Gazette

Gov. Hochul Press Release – August 27, 2025– The Environmental Facilities Corporation (EFC) surpassed $3.4 billion in executed financial assistance agreements for 328 local water infrastructure projects across the State during State Fiscal Year 2025 — a 55 percent increase in year-to-year funding. This record investment is making crucial projects affordable for New Yorkers and empowering local communities to undertake critical drinking water and sewer projects. These projects improve water quality, safeguard public health and the environment, support local economic growth, and contribute an estimated 30,000 good-paying jobs. These numbers reinforce EFC’s critical role as New York State’s water infrastructure bank.

“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,” Governor Hochul said. “We’re transforming communities, protecting public health and ensuring every New Yorker can count on clean, safe water without breaking the bank.”

EFC’s historic investment was made possible by Governor Hochul’s continued grant funding commitments for clean water, and federal funding through the Infrastructure Investment and Jobs Act. 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 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 strategic, innovative financing, EFC delivers a 300 percent 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.

Fully funded State Revolving Funds are necessary for New York to be prepared to meet the ongoing need for communities to repair, rehabilitate and modernize aging infrastructure in the future. Access to affordable financing increases investment in water infrastructure, which can prevent costly catastrophic system failures and alleviate pressure on utilities to raise rates, providing relief to many families already struggling to pay their water bills.

This record-setting $3.4 billion investment reflects the cumulative impact of project funding announcements made by Governor Hochul following each meeting of EFC’s Board of Directors from April 2024 through March 2025. These regular milestones marked key moments of progress, authorizing municipal access to funding. Each project was added to EFC’s Project Impact Dashboard upon execution of a funding agreement, allowing the public to track local benefits.

EFC’s annual Program Metrics Report highlights the impact and momentum toward the Governor’s clean water goals, ensuring that communities across New York are empowered to deliver safe, affordable, and modern water infrastructure for generations to come. Highlights of this year’s report include:

Record Single-Year Investment Tops $3.4 Billion

• $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.

-Funding is helping communities affordably invest in life-saving system improvements, modernizing aging systems, replacing lead service lines and tackling emerging contaminants statewide.

Community Assistance Teams Deliver More Than a Half Billion Dollars

• Governor Hochul’s Community Assistance Teams, launched in 2023, expanded EFC’s technical assistance program.
• More than $591 million in low-interest financing and $63 million in grants has been awarded to municipalities that worked directly with the Teams.
• Teams provided targeted guidance to help communities navigate the funding process and address their clean water needs.

Transformative State Water Grants Make Projects Affordable

• $445 million in Water Infrastructure Improvement and Intermunicipal Water Infrastructure Grants awarded in November 2024.
• $127 million in enhanced grants to sewer projects in small and rural communities, delivering on Governor Hochul’s State of the State. Enhanced grants double awards from 25 percent to 50 percent of eligible project costs, reducing the financial strain of critical projects on local ratepayers.
• $66 million in enhanced grants awarded to drinking water projects addressing emerging contaminants.
• Enabled replacement of aging systems, enhancement of treatment processes, and long-term improvements in water quality and sustainability.

Wastewater Infrastructure Engineering Planning Grants Jumpstart Projects

• $23.2 million has been awarded since the program’s inception.
• These grants help municipalities prepare required engineering reports, a key step in the EFC financing process, to advance fiscally sound and well-designed projects to construction.
• These grants have enabled $1.2 billion in financing through the Clean Water State Revolving Fund.

Green Infrastructure Funding Strengthening Resiliency in Flood-Prone Communities

• $60 million was awarded in the inaugural round of Green Resiliency Grants.

-Launched in 2024, these grants are a key element of Governor Hochul’s extreme weather adaptation strategy.

-Nearly half allocated to New York City projects.

-The program is supported in part by the Clean Water, Clean Air, and Green Jobs Environmental Bond Act of 2022.

-Projects will reduce stormwater runoff, mitigate flooding, and expand green space.

• 11 projects completed in FY 2025 with funding from the Green Innovation Grant Program are managing more than 49 million gallons of stormwater annually.

                        -The program helps communities implement solutions that reduce strain

on traditional infrastructure, improve water quality and resilience, and foster economic development.

Getting the Lead Out Without Burdening Local Ratepayers

• Governor Hochul awarded $100 million in State Lead Infrastructure Forgiveness and Transformation Grants to 12 communities.
• Federal IIJA funding has provided $240 million to New York for lead service line replacement.
• The State is using innovative repayment structures to ensure certain projects are 100 percent grant-funded upon completion — with no burden on local ratepayers.

Bond Transactions Generate More Than $280 Million in Savings

• Series 2024 A was closed in April 2024 on behalf of New York City. The transaction is providing $208 million in savings for New York City ratepayers.
• EFC closed on Series 2024 B in September 2024, providing a savings of $15 million to ratepayers in 38 communities.
• Series 2025 A and 2025 B were new money deals that closed in February 2025 and included financing for 27 communities, providing an estimated $58 million in savings for local ratepayers.