On Sept. 17, New York State allocated more than $130 million in state grants to projects that inspect and replace lead water service lines. New York City will receive $14 million for work in Queens, Brooklyn and Staten Island. Because the state repays the federal loan portion on the localities' behalf when projects are completed, upward pressure on water rates in those areas is reduced.
On Sept. 17, New York State allocated more than $130 million in state grants to 24 localities for projects that inspect and replace lead water service lines. New York City will receive $14 million for work in Queens, Brooklyn and Staten Island. In the Hudson Valley, Poughkeepsie was awarded $14 million, Port Jervis $13,400,768 and Newburgh $2,711,458.
State Repays the Loans
The grants come through the Lead Infrastructure Forgiveness and Transition (LIFT) program. Under the law, part of the federal Infrastructure Investment and Jobs Act (IIJA) funding must be provided as loans, and if a locality takes on those loans, they ultimately have to be paid back through water rates. When a project is completed, the state repays that loan portion with state grant money. As a result, upward pressure on water rates for residents of those areas is reduced.
Priority went to areas where median household income is below 80% of the state average or where the poverty rate is higher than the state average. Since 2022, New York State has allocated more than $600 million in federal funds to lead pipe inspection and replacement, of which $310 million was in grants and $295 million in loans. Since the LIFT program began in 2024, the amount provided as debt forgiveness exceeds $290 million, including this announcement.
Homes Built Before 1986 Are Covered
Lead leaches into water when pipes, faucets and plumbing fittings corrode. Corrosion occurs more readily in water that is more acidic or low in minerals. The service line connecting a home to the water main is the biggest source of lead contamination in tap water, and older homes and cities built before 1986 are likely to still have lead pipes.
In New York City, the Department of Environmental Protection (DEP) separately runs a program that replaces lead service lines free of charge at single-family and multifamily homes. The city covers the cost, which runs around $10,000 if a homeowner does the work on their own. Applications and eligible areas can be checked on the DEP website (nyc.gov/dep).