Project Funded by State and Federal Investments, Including $28 Million in Grants and $3 Million in Interest-Free Financing

The First Clean Water Infrastructure Project in New York State Completed with Funding from the Federal Bipartisan Infrastructure Law

Project Improves Water Quality and Storm Resiliency by Modernizing Wastewater Infrastructure

Governor Kathy Hochul on Oct 8th, announced the completion of the City of Newburgh’s North Interceptor Sewer Improvement Project, crucial to protecting the water quality of the Hudson River and increasing storm resiliency. It’s the first clean water infrastructure construction project in New York State completed with funding in part from the federal Bipartisan Infrastructure Law. The more than $31 million project was funded by State and federal investments, including $28 million in grants and $3 million in interest-free financing. Under the leadership of Governor Hochul, New York State continues to get the federal funding out the door equitably and efficiently to help communities undertake and complete critical wastewater and drinking water projects, minimizing the financial impact on local ratepayers.

“Combined with our state's unprecedented clean water investments, funding from the Bipartisan Infrastructure Law provides a crucial opportunity to make significant environmental improvements that will protect public health across the state for generations to come,” Governor Hochul said. “These upgrades are vital to protecting the environment and enhancing quality of life in Newburgh, and my administration will continue to work hard to get funding out the door to help communities undertake and complete critical projects, and to do so as affordably as possible.”

In addition to $6 million in federal grants and interest-free financing from the BIL, the project received $15 million in state grants from the Water Quality Improvement Project and Water Infrastructure Improvement programs, a $5 million grant from the Clean Water State Revolving Fund, a $3 million federal Community Grant, and a $2 million grant from the federal American Rescue Plan Act.

The significant state and federal investments supported construction of 8,700 linear feet of new, larger sewer pipes and other crucial upgrades to strengthen the city's ability to withstand high water events and reduce pollution in the Hudson River. Innovative microtunneling techniques were used to install over 2,000 linear feet of underground sewer pipeline, reducing disruption for community residents and expediting construction. The new, larger pipes are increasing system capacity and reducing pollution discharged to the Hudson River by diverting more flows to the city's treatment plant during wet weather events.

The federal funding is administered through the State Revolving Funds by the New York State Environmental Facilities Corporation (EFC) in coordination with the Departments of Environmental Conservation and Health. EFC closed on $96 million in federal funding for eight projects as part of a record $2.2 billion investment in clean water infrastructure in State Fiscal Year 2024.

EFC President & CEO Maureen A. Coleman said, “Under Governor Hochul’s leadership, EFC is committed to working with local communities to safeguard water quality throughout New York State, making record investments to protect public health and the environment while ensuring these projects are affordable. EFC’s ongoing partnership with the City of Newburgh to complete critical wastewater upgrades is helping to make marked improvements in the water quality of the Hudson River, saving an estimated $24 million for local ratepayers.

DEC Interim Commissioner Sean Mahar said, “Completion of the city of Newburgh’s $31 million sewer improvement project will have a lasting positive impact for local residents and the health of the Hudson River. Thanks to Governor Hochul’s sustained and generational investments in water quality bolstered by funding from the Biden-Harris Administration’s Bipartisan Infrastructure Law, the major upgrades to clean water infrastructure completed today will enhance community storm resiliency while reducing pollution, benefitting the entire region.”

Senate Majority Leader Charles Schumer said, “I fought hard to pass the Bipartisan Infrastructure & Jobs law to help fund projects like the vital North Interceptor Sewer Improvement Project in Newburgh, which will install modern sewer pipes to increase protection against storms and help keep the Hudson River clean. For years, I've worked with the City of Newburgh, Riverkeeper, the Newburgh Clean Water Project, and other local advocates to improve Newburgh's water infrastructure to make our beloved Newburgh neighborhoods healthier and safer places to live and work. I thank Governor Hochul for her work using federal funds to complete the first clean water infrastructure project in New York with support from the Bipartisan Infrastructure & Jobs Law, and will continue fighting to deliver funding to support our Hudson Valley communities.”

EPA Regional Administrator Lisa F. Garcia said, “Right here in Newburgh, the Biden- Harris Administration has delivered on its promise to invest in the health, equity and resilience of communities across the nation to address the generational challenge of combined sewer overflows. When we invest in wastewater infrastructure, we not only invest in the health of a beloved natural resource like the Hudson River but also in the community members who live along its banks. Congratulations to Newburgh for being the first in New York State to complete a clean water project funded under the Bipartisan Infrastructure Law. This is an exciting milestone and just the first of many success stories here in New York.”

Senator Kirsten Gillibrand said, “Clean water should be accessible to all Americans regardless of where they live. High-quality wastewater systems are vital to protect the environment and public health, and I am grateful to see federal funding being used to upgrade this critical infrastructure. I worked hard to help pass the Bipartisan Infrastructure Law, and I am proud that funding from this historic legislation is already making a difference for communities in New York.”

Representative Pat Ryan said, “Clean water is vital for our families’ health and for our environment to thrive. I’m proud that this project, fueled by landmark investments from the historic Bipartisan Infrastructure Law, marks a new chapter for Newburgh families by delivering cleaner water today and for generations to come. I’ll keep working to bring more of these monumental federal investments home and keep fighting for the clean water every Hudson Valley family deserves.”

Assemblymember Jonathan Jacobson said, “Congratulations to the City of Newburgh for completing this monumental environmental project in record time — 2 ½ years. This project has stopped 56 MILLION gallons of raw sewage from being dumped into the Hudson River. Newburgh took advantage of a once-in-a-lifetime opportunity through funding from the Federal Bipartisan Infrastructure Act, the American Rescue Plan, and the State. More than half of the funding came from New York State — $15 million. This vital project was completed at minimal cost to Newburgh taxpayers. Thank you to the hard-working union members and my partners in State government, including Governor Kathy Hochul, as well as Federal government and local officials, for getting this project over the finish line.”

Mayor of Newburgh Torrance R. Harvey said, “Governor Hochul understands the policy imperative of hardening municipal infrastructure to combat the effects of climate change, and the moral obligation of stewardship for our vital natural resources. Governor Hochul’s administration efficiently and effectively delivered state and federal funding from the Biden-Harris Administration’s Bipartisan Infrastructure Law directly to the City of Newburgh for this transformative clean water project that will benefit all Hudson River communities. The City of Newburgh is forever grateful to Governor Hochul for her leadership and commitment to the health of our residents, and to all residents of the Hudson Valley.”

Riverkeeper Senior Director of Advocacy, Policy, and Planning Dan Shapley said, “Riverkeeper has advocated for more than 50 years to stop pollution in the Hudson. As communities up and down the river make investments to eliminate overflows from water treatment infrastructure that combines sewage and stormwater, this project means we'll get to enjoy cleaner water. That's good for all the life that relies on the Hudson, including us humans. Already most of the river is safe for swimming, most of the time - and this project will help open more opportunities for safe recreation in the future. We want to thank Newburgh, as well as the state and federal leaders who have made funding available for projects like these. As we move toward the next legislative session in Albany, Riverkeeper will be advocating for continued commitments to the Clean Water Infrastructure Act and Environmental Protection Fund so that communities can continue to make these kinds of improvements.”

New York’s Commitment to Water Quality
New York State continues to increase its nation-leading investments in water infrastructure, including more than $2.2 billion in financial assistance from EFC for local water infrastructure projects in State Fiscal Year 2024 alone. With $500 million allocated for clean water infrastructure in the FY25 Enacted Budget announced by Governor Hochul, New York will have invested a total of $5.5 billion in water infrastructure between 2017 and this year. Governor Hochul’s State of the State initiatives are helping to ensure ongoing coordination with local governments and ensure communities can leverage these investments. The Governor increased WIIA grants for wastewater projects from 25 to 50 percent of net eligible project costs for smaller, disadvantaged communities. The Governor also expanded EFC’s Community Assistance Teams to help small, rural and disadvantaged communities leverage this funding and address their clean water infrastructure needs. Any community that needs help with its water infrastructure is encouraged to contact EFC.

The funding, in addition to other substantial water quality investments, includes the voter-approved $4.2 billion Clean Water, Clean Air and Green Jobs Environmental Bond Act of 2022?which is advancing historic levels of funding to update aging water infrastructure and protect water quality, strengthen communities' ability to withstand severe storms and flooding, reduce air pollution and lower climate-altering emissions, restore habitats; and preserve outdoor spaces and local farms. The first round of funding under the Environmental Bond Act was awarded through the WIIA/IMG programs in December, when Governor Hochul announced $479 million in grants to 156 projects across New York State, including $309 million made available to disadvantaged communities. Disadvantaged Communities will receive at least 35 percent of the benefits of Bond Act funding, with a goal of 40 percent.