Unequal Distribution of Environmental Bond Act Funds Leaves New York City Shortchanged

New York City voters overwhelmingly supported the state's $4.2 billion Clean Water, Clean Air and Green Jobs Environmental Bond Act, but the city has so far received only a small fraction of the available funds. Local officials are now demanding a fairer share of the money to address pressing environmental and climate resilience needs.

Voters Backed the Bond Act, but City Sees Minimal Payoff

Statewide Approval, Uneven Distribution

The Clean Water, Clean Air and Green Jobs Environmental Bond Act, approved by New York voters in 2022, allows the state to borrow $4.2 billion for a range of environmental projects, including stormwater and wastewater systems, green buildings, coastal protections, and electric school buses. While over $313 million has already been allocated to local governments across the state, New York City, home to more than 40% of the state's population, has received just $6 million, or less than 2% of the total.

Urgent Needs, Enthusiastic Support

New York City has faced the devastating impacts of destructive storms like Hurricanes Ida and Sandy, underscoring the urgent need for investments that the Bond Act could fund. Voters in the city overwhelmingly supported the measure, with approval rates ranging from 78% in Queens to 89% in Manhattan. Local officials who championed the Bond Act now express dismay over the city's paltry share of the funds, arguing that New Yorkers expected a fair distribution based on their strong electoral support.

Funding Formulas and Caps Disadvantage New York City

The law allocates funds based on spending categories, not by region, and the state has so far relied on funding formulas that cap the amount any one locality can receive. This approach, which treats New York City as just another municipality, has resulted in the city receiving a disproportionately small share of the available resources. For example, the state's Green Resiliency Grant program, which is partially funded by the Bond Act, has a total of $60 million available, but caps individual grants at $10 million, effectively limiting the city's ability to access a fair portion of the funds.

Pushing for a Fairer Share

Local officials, including the city's Department of Environmental Protection commissioner and state legislators, have been advocating for the state to allocate more Bond Act funds to New York City. They argue that the current funding formulas and eligibility criteria are unfair and fail to account for the city's outsized population, tax base, and environmental challenges. With over 90% of the Bond Act funds still unspent, there is an opportunity for the state to develop new programs that better serve the needs of the five boroughs.

Leveraging the Bond Act for City Priorities

New York City has a long list of environmental and climate resilience projects that could benefit from the Bond Act funds, including forest restoration, freight charging hubs, green roof bus shelters, and salt marsh restoration. The city has also identified the need for significant investments in stormwater infrastructure, with the Department of Environmental Protection estimating a $30 billion price tag to improve resiliency to heavy rains. The Bond Act's mandate to direct more than a third of the funding to disadvantaged communities could also help address environmental justice concerns in the city.

Ongoing Advocacy and the Path Forward

Local officials are continuing to advocate for a fairer distribution of the Bond Act funds, recognizing that the city's ability to realize its environmental and climate resilience goals is closely tied to securing a more equitable share of the available resources. As the state develops new programs and funding opportunities, there is a critical need to ensure that New York City's unique needs and challenges are properly accounted for, allowing the city to fully leverage the potential of the Bond Act.