New York (WRGB) — Nearly $500 million in state grants is headed to communities across New York to overhaul drinking water and sewer systems, a sweeping investment officials say will cut costs for local ratepayers, replace lead service lines and confront emerging contaminants while putting thousands of people to work.

Gov. Hochul announced the funding as the first installment of her $3.75 billion clean water investment plan included in the 2027 Enacted State Budget. The state is awarding nearly half a billion dollars to 106 projects with a combined $1.4 billion in total costs, aimed at modernizing aging infrastructure and supporting sustainable growth and economic development.

Gov. Hochul said,

Investing in water infrastructure is an investment in the future of every New Yorker. My administration will continue ensuring communities have the financial support and tools they need to protect public health and safeguard our natural resources while keeping these critical investments affordable.

State officials estimate the grants will save communities about $1 billion in debt service they would otherwise face if they financed the work on their own under current market conditions. The projects are also projected to create 22,400 jobs in construction and related industries, including engineering, manufacturing and local services.

The awards include Water Infrastructure Improvement and Intermunicipal Water Infrastructure Grant funding. A full list of awards is available on the New York State Environmental Facilities Corporation website.

Regional awards include:

Capital Region: $40 million for 14 projects, including two grants totaling $6.5 million to the Village of Menands for lead service line replacement and drinking water treatment improvements.Central New York: $64 million for 10 projects, including $25 million to Oswego County for a regional wastewater infrastructure initiative.Finger Lakes: $52 million for 14 projects, including nearly $10 million for the Village of Avon’s wastewater treatment project to improve water quality in the Genesee River.Long Island: $57 million for 12 projects, including $7.8 million to Suffolk County for the Fairfield at St. James Wastewater Treatment Plant expansion, which will ultimately connect more users to municipal sewer.Mid-Hudson: $66 million for seven projects, including $10 million to the Town of Poughkeepsie for lead service line replacement.Mohawk Valley: $37 million for six projects, including $8.9 million to the Village of Camden for wastewater infrastructure improvements to protect Fish Creek and Oneida Lake.New York City: $25 million for a tank project at the North River Water Pollution Control Plant to protect water quality in the Hudson River. The plant treats up to 170 million gallons of wastewater every day, and the improvements are intended to prevent untreated sewage from bypassing the system.North Country: $65 million for 10 projects, including $14 million to Elizabethtown to establish a municipal sewer and wastewater treatment system.Southern Tier: $26 million for seven projects, including $6.9 million to the Town of Chenango for improvements to protect drinking water from emerging contaminants.Western New York: $67 million for 15 projects, including $4.6 million to the Town of Friendship for sewer improvements to protect and improve water quality in the Genesee River basin.

The state said the awards reflect a focus on communities with the greatest need, including:

$119 million in enhanced grants for drinking water projects to bring systems into compliance with state standards for emerging contaminants, and for wastewater and sewer projects in small, rural and disadvantaged communities. Those enhanced grants include projects in Avon, Camden, Chenango, Elizabethtown and Friendship.$64 million for projects to identify and replace lead service lines, building on more than $600 million in grant commitments since 2021.$120 million for municipalities that worked with EFC’s Community Assistance Teams, a technical assistance program Hochul expanded in 2023 to help small, rural and disadvantaged communities complete applications, access funding and address water infrastructure needs.

EFC President and CEO Maureen A. Coleman called the funding a major affordability tool for communities.

Coleman said,

Governor Hochul’s historic $500 million investment will have a lasting impact on New Yorkers’ quality of life. With these grants, the State is protecting the environment and what comes out of the tap while protecting the pockets of New Yorkers. EFC’s WIIA grants are proven vehicles for affordability and will help ensure these critical projects won’t be held up because of costs.

State Health Commissioner Dr. James McDonald said the grants will help communities address long-standing and emerging threats to drinking water.

McDonald said,

Once again, Governor Hochul is delivering on her commitment to ensuring municipalities across New York can affordably provide safe drinking water to our communities. These grants will help remove lead service lines and combat harmful emerging contaminants from drinking water while protecting public health for years to come.