Breaking Down NY’s $325 Million Water Infrastructure Grants

Introduction

New York State is, once again, investing heavily into water infrastructure – on June 11, it announced $325 million in grant funding for the Water Infrastructure Improvement (WIIA) and Intermunicipal Water Infrastructure Grant (IMG) Programs. This is a significant opportunity for municipalities across the state with outdated and aging water and wastewater systems. With this grant money, municipalities can upgrade their water and wastewater systems, improve public health protections, and ensure long-term environmental resilience.

Who Can Apply?

Eligibility is limited to municipal entities in New York State such as counties, cities, towns, villages, school districts, water/wastewater districts, Indian Nations/tribes, public benefit corporations, and certain state agencies. The eligible projects that these municipalities can request the grant funding for are:

• Construction, replacement, or repair of drinking water or wastewater infrastructure
• Compliance upgrades to meet environmental and public health regulation standards
• Implementation of innovative technologies directed at mitigating emerging contaminants like PFAS, PFOS, and 1,4-dioxane
• Sewer system improvements

General Grant Details

There are 3 categories of projects that can be granted funding:

• WIIA Clean Water Projects
• WIIA Drinking Water Projects
• IMG Intermunicipal Projects

For WIIA Clean Water Projects, the grant may cover up to $25 million per project or 25% of net eligible costs, whichever is less. Small or rural disadvantaged communities may qualify for 50% funding up to $25 million.

For WIIA Drinking Water Projects, the grant may cover up to 70% of net costs for emerging contaminant projects where contaminants are above the Maximum Contaminant Level with no cap on the project’s cost. Other drinking water projects may be awarded up to $5 million or 70% of net costs, whichever is less.

Lastly, for IMG Intermunicipal Projects, the grant may cover up to $30 million or 40% of net eligible costs for two or more municipalities that collaborate on a project together, whichever quantity is less. A municipality may receive one IMG award per year.

The deadline to apply for funding through these programs is September 12, 2025. To learn more about the application process, what is required, and how the applications will be evaluated, there will be a webinar hosted by the New York State Environmental Facilities Corporation (EFC) on July 11, 2025. For additional information, please contact Walden’s experienced grant writing team at 516-548-2974.