NY Unlocks $15M in Grants to Help Homeowners Replace Aging Septic Systems

New York homeowners stuck with failing septic systems or outdated cesspools have a real shot at financial relief. On April 2, 2021, Governor Andrew M. Cuomo announced that $15 million in grant funding was being made available through the State Septic System Replacement Program, helping qualifying homeowners cover the cost of replacing aging systems that threaten local water quality. The funding represented the second round of a broader $75 million commitment from New York's Clean Water Infrastructure Act of 2017.

If your home sits in one of the state's priority geographic areas, this program can erase thousands of dollars off one of the most expensive and least-fun repairs a homeowner ever faces.

Why New York Is Paying Homeowners to Replace Septic Systems

Failing septic systems and old cesspools are one of the biggest sources of nitrogen and bacteria pollution flowing into New York's lakes, bays, streams, and drinking water aquifers. Because most of these systems sit on private property, the state can't clean up the problem without homeowner participation. The Septic System Replacement Program flips the usual dynamic: instead of fining homeowners for non-compliance, it reimburses them for doing the right thing.

The New York State Department of Environmental Conservation (DEC), Department of Health (DOH), and Environmental Facilities Corporation (EFC) jointly identify priority areas where replacements will have the biggest impact on water quality. Those priority zones are typically located near sole-source drinking water aquifers or waterbodies already known to be impaired by septic discharges.

How Much Money Homeowners Can Get

The core benefit is a reimbursement, not an upfront check. Homeowners pay for the work, then submit documentation to their participating county for payment.

• Conventional septic system replacement: up to 50% of eligible costs, capped at $10,000
• Enhanced treatment systems (in certain counties with stricter water quality needs): up to 75% of eligible costs, capped at $25,000

Counties administer the program locally, so reimbursement rules, contractor requirements, and payment timelines can vary slightly depending on where you live.

Which Counties Are Eligible

Funding is only available in participating counties that have signed intermunicipal agreements with EFC. At the time of the 2021 announcement, participating counties included Suffolk, Nassau, Rockland, Ulster, Lewis, Washington, Herkimer, and several others across upstate and Long Island. Suffolk County, where decades of cesspool use have contaminated groundwater, has historically been the largest user of the funds.

If your county is not on EFC's participating list, you are not eligible — even if your system is failing. It's worth calling your county health department anyway, because some counties stack their own local grants on top of the state program.

What Kinds of Projects Qualify

Eligible projects generally include:

• Complete replacement of a failed or undersized septic system
• Removal and replacement of a cesspool with a modern septic system
• Installation of enhanced nitrogen-reducing treatment systems in designated zones
• Associated site work, permits, engineering, and inspections tied directly to the replacement

Routine pumping, maintenance, or cosmetic repairs do not qualify. Work generally must be performed by a licensed contractor and inspected by the county before reimbursement is issued.

How to Apply as a Homeowner

Applications do not go through the state. They go through your participating county, usually the health department or planning office. The typical path looks like this:

1. Confirm your property sits in a designated priority area on EFC's maps.
2. Contact your county program administrator before hiring anyone — pre-approval is almost always required.
3. Get at least one qualifying bid from a licensed septic installer.
4. Complete the installation and pass county inspection.
5. Submit paid invoices and inspection paperwork for reimbursement.

Most counties process reimbursements within 30 to 60 days of final paperwork.

Is the Program Still Funded?

Yes. The Septic System Replacement Program has continued beyond the 2021 round under Governor Hochul, who has added further rounds of funding and expanded eligibility. If you're a New York homeowner facing a septic repair bill, check EFC's current program page and your county health department before breaking ground — waiting 48 hours to confirm eligibility can be worth thousands of dollars.