Funding Chips Away at NJ’s Water Problems

By Patricia Hilliard • Hudson County Group

In my previous article, I discussed problems affecting New Jersey’s drinking water supply, such as lead and other chemical contamination. On the positive side, as I discuss below, much money has been made available to help address these issues. 

Safe drinking water is a bipartisan issue—both parties agree on the need to act. In 1974, President Gerald Ford signed The Safe Drinking Water Act, whose focus was to protect the nation’s drinking water. Amendments to the act made it stronger, focusing on rivers, lakes, and groundwater.

On August 5, 2025, the Environmental Protection Agency (EPA) announced $9.5 million in nationwide grant funding via its water system resilience program, which supports conservation, infrastructure reconstruction, water desalination, energy efficiency, flood protection, and cybersecurity. Hopefully, eligible towns and cities in New Jersey joined the competition for these funds. The deadline to apply was October 6, 2025, but additional funds may be available in 2026.

The New Jersey Water Bank

In 2024, over $1 billion in funding for water infrastructure projects was financed through the NJ Water Bank, which draws upon state and federal funds, including from the EPA, and partners with the Department of Environmental Protection (DEP) and the NJ Infrastructure Bank. It helps municipalities and water systems obtain loans, at below-market rates, to upgrade water systems. This funding has been used to replace lead pipes and decaying galvanized water lines, install PFAS treatment systems, manage stormwater and sewage problems, and upgrade wastewater treatment plants.

In 2024, the City of Irvington—an environmental justice community—received $48 million in Water Bank financing to replace some 5,400 lead and galvanized residential pipes. This was a lifeline for Irvington.

Many New Jersey cities are receiving loans and beginning work to remove lead pipes. Among them are: New Brunswick, Harrison, Chatham Borough, and others. In March, Edison closed on an $8.3 million loan from the NJ Water Bank to upgrade its water main infrastructure.

Improving NJ’s Drinking Water

In 2024, the Department of Environmental Protection launched the Our Water’s Worth It campaign to recognize towns and utilities doing outstanding work. Since then, Ridgewood Water was commended for efforts to conserve water and address PFAS contamination, and Lambertville got a nod for its exemplary stormwater management program. The New Jersey Drinking Water Quality Institute was noted for its contributions to establishing the state’s PFAS public health standards, and the Camden County Municipal Utilities Authority was noted for reducing sewage discharges and implementing flood controls. These entities are doing good work!

Newark Upgrades

In September, Newark celebrated the completion of a grand improvement to its Pequannock water treatment plant, which provides drinking water for 400,000 residents. The system, built in 1989, had long-standing filtration problems and concerns about lead leaching. It received an extensive upgrade, including installation of carbon filters that remove PFAS. The upgrade cost $20.5 million and has increased the plant’s water capacity to 60 million gallons a day. In Newark, efforts to remove lead from the water supply and infrastructure continue. This is what it takes to provide clean, safe drinking water to a large city.

Cape May Desalination

Sea-level rise has created the problem of salt contamination for many Jersey shore communities, making desalination an important part of the supply of potable water. Thanks to $1.7 million in loans arranged through the NJ Water Bank, Cape May was able to drill a new back-up well for its water treatment plant. This could augment the water supply by 1,000 gallons per minute.

In the meantime, let’s drink a toast to clean, safe drinking water in most of New Jersey! Join Sierra Club and help push for clean drinking water for all!


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