(UI) — The New York State Environmental Facilities Corporation (EFC) has cleared nearly $200 million in low-cost financing and grants for municipal water infrastructure, giving dozens of communities new resources to modernize wastewater plants, replace aging drinking-water mains and control storm-runoff.

“Clean water is a fundamental right, and New York is leading the way in making sure communities have the resources they need to protect it,” Governor Kathy Hochul said in announcing the funding package.

The largest single award—$50 million—goes to New York City for a storm- and wastewater resiliency project tied to the Gowanus Canal Superfund cleanup. Half of the award is a grant from the federal Infrastructure Investment and Jobs Act; the other half is interest-free financing for underground tanks and sewer improvements that will curb century-old overflows into the canal.

Other water-sector highlights include:

EFC Chair Charles Sawyer said the mix of grants and below-market loans “reduces the need for higher rate increases and helps communities tackle projects they could not otherwise afford.”

The board also refinanced completed projects at zero-percent interest—savings that EFC estimates will cut local debt-service costs by $51 million over the life of the loans.

With the FY 2026 budget allocating another $500 million for clean-water work, New York’s total commitment to water infrastructure since 2017 will top $6 billion. Municipalities can apply for the current round of Water Infrastructure Improvement grants at efc.ny.gov.