The New York State Environmental Facilities Corporation (EFC) executed more than $3.4 billion in financial assistance agreements during State Fiscal Year 2025, supporting 328 local water infrastructure projects. The total represents a 55 percent increase from the previous year, making it the largest single-year investment in the program’s history.
The funding includes approximately $2.6 billion in grants and low-interest financing for sewer projects and $821 million for drinking water projects. Federal contributions through the Infrastructure Investment and Jobs Act (IIJA) provided $530 million for wastewater improvements and $97 million for drinking water system upgrades. Additional support came from state programs, including $445 million in Water Infrastructure Improvement and Intermunicipal Water Infrastructure Grants, $127 million in enhanced grants for small and rural sewer projects, and $66 million in enhanced drinking water grants to address emerging contaminants.
Projects funded during the year cover a range of needs, from new wastewater treatment facilities to rehabilitation of existing sewer systems, replacement of lead service lines, and modernization of drinking water infrastructure. Green infrastructure initiatives were also advanced, with $60 million awarded for stormwater management and resilience projects. Eleven green infrastructure projects completed in FY 2025 now manage more than 49 million gallons of stormwater annually.
State officials estimate the $3.4 billion investment will support approximately 30,000 jobs. Financing was delivered through the State Revolving Funds, which offer below-market interest rates and extended repayment terms, lowering costs for municipalities. Recent bond transactions conducted by EFC generated more than $280 million in savings for local ratepayers across multiple communities.
The application window for the next round of water infrastructure grants is open through September 12, 2025. With $500 million allocated in the FY 2026 budget, New York will have invested $6 billion in water infrastructure since 2017.