Albany, New York — Governor Kathy Hochul announced $3.8 billion in water infrastructure investments completed during New York's fiscal year 2025, with plans to commit another $500 million for water projects in fiscal year 2026. Published on January 6, 2026, this announcement highlights the state's sustained commitment to modernizing aging water systems across New York and protecting public health through critical infrastructure upgrades.
The $3.8 billion total includes approximately $1.1 billion in targeted grants, supplemented by low-cost financing and assistance agreements that supported water projects statewide. This substantial investment enabled hundreds of drinking water, wastewater, and stormwater projects to move forward across New York communities.
Building on 2025 momentum, Governor Hochul has allocated approximately $500 million for water infrastructure in the fiscal 2026 budget. While specific projects have not yet been selected, the funding is available for eligible projects, entities, and community partnerships meeting state criteria.
State officials indicate that these 2026 funds are specifically intended to help local governments move additional drinking water, wastewater, and stormwater projects from the planning phase into active construction. This focus on accelerating project timelines should speed up the transition from engineering studies to on-the-ground work.
Many water systems receiving funding have been operating under conditions requiring attention for decades, according to state officials. The cumulative effect of these investments is substantial:
New York communities interested in accessing 2026 water infrastructure funding should work through:
Communities are encouraged to identify eligible projects now, as competitive grant programs and financing opportunities may fill quickly as word spreads about available funding.
New York's commitment to water infrastructure reflects a national challenge. Aging water systems across the United States require modernization to meet 21st-century standards. Lead contamination, system leaks, treatment capacity limitations, and climate vulnerabilities affect municipalities of all sizes. Federal infrastructure funding combined with state investments like New York's create a multi-year opportunity to address deferred infrastructure maintenance across the state.
Industry Insight: Westside Construction Group has extensive experience managing large-scale water infrastructure, treatment plant upgrades, and distribution system improvements. WCG understands the complex regulatory environment, environmental compliance requirements, and project management demands of water system modernization. For consultation on water infrastructure projects or municipal construction: (585) 440-0304 or www.buildwcg.com
For related NY infrastructure coverage, see New York $453M Water Infrastructure Awards Enter Procurement in 2026.
Additional details available from New York Department of Environmental Conservation and the NYS Water Authority Programs.
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