New Funding Boosts Clean Energy Efforts

By Blake Jackson

The New York Department of State has announced the opening of its $8 million Local Government Efficiency Grant (LGEG) program, which invites municipalities to apply for funding to improve community services and reduce long-term costs.

The program encourages partnerships between two or more local governments to plan or implement shared services, consolidations, or dissolutions that will lead to greater efficiency and savings for residents.

State leaders highlighted the value of encouraging innovation across communities. “Incentivizing municipalities to find new efficiencies is a great way to create more affordable communities,” said Secretary of State Walter T. Mosley. “The Local Government Efficiency program has shown the capacity to offer great economic returns for localities and expanding it will bring even more savings to New Yorkers.”

This year’s program places special emphasis on projects that address major emerging needs. Priority Points will be awarded to regional or local proposals that support water and wastewater management systems or clean energy initiatives.

These areas are central to long-term community resilience, environmental protection, and public safety. Water system upgrades help communities maintain reliable infrastructure, while clean energy projects improve sustainability and lower costs for future generations.

Funding is available for both implementation and planning grants. Approximately $7.2 million will support implementation projects, while $800,000 will support planning efforts. Implementation grants are capped at $250,000 per municipality and require a 10% match. Planning grants are capped at $20,000 per municipality and require a 50% match. Applications must be submitted by February 4, 2026.

Eligible entities include counties, cities, towns, villages, school districts, public libraries, fire districts, water and sewer authorities, and regional planning boards. Projects are evaluated based on return on investment, service benefits, operational improvements, and readiness to be completed within five years.

The program has already delivered significant savings for New York communities. More than 655 projects have received support, leading to an estimated $680 million in long-term savings. By focusing this year on water, wastewater, and clean energy improvements, the state aims to help local governments build stronger, safer, and more efficient public systems.

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