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New York’s water infrastructure faces significant funding challenges, DiNapoli reports

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  • Staff Report 

The Environmental Facilities Corporation (EFC), a key entity in New York’s water infrastructure financing, is facing a substantial backlog in funding for essential water and sewer projects, State Comptroller Thomas P. DiNapoli revealed. Despite leading the nation in spending on clean water and drinking water projects, New York still confronts considerable challenges due to aging infrastructure, with tens of billions required to meet ongoing needs.


From 1990 to 2022, New York allocated over $23.7 billion to more than 2,000 local water projects through the Clean Water State Revolving Fund and the Drinking Water State Revolving Fund. However, current estimates show a combined backlog in these programs amounting to $26.1 billion, covering nearly 2,000 pending projects. This comes even as the state anticipates $2.5 billion from the 2021 federal Infrastructure Investment and Jobs Act to address issues like climate change and contaminants.

Despite these substantial investments, the funding gap continues to widen, with the U.S. Environmental Protection Agency estimating a 20-year capital need of over $63 billion for New York’s water projects. DiNapoli has called for increased transparency and efficiency in the state’s funding processes to better support local governments and ensure continued progress in upgrading water systems.

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