ALBANY- A recent audit by State Comptroller Tom DiNapoli has found significant gaps in the oversight and guidance provided by the New York State Department of Health (DOH) for a program aimed at replacing lead drinking water service lines. According to the report, millions of dollars in state funds were either left unused or spent on administrative costs, and some communities with high rates of childhood lead exposure were not prioritized for funding.
“Lead in drinking water poses a serious threat to public health, and can especially harm children, who are at greatest risk because their bodies and brains are still developing,” DiNapoli said in a statement. “New York State has worked to address this hazard by targeting funding towards finding and replacing lead water service lines, but my auditors found the Department of Health could improve its oversight. Although the cost to replace lead service lines in the state far exceeds available funding, better guidance could help ensure any additional funds allocated for this purpose will be more effectively deployed.”
Lead service lines, which connect homes to municipal water systems, can corrode over time, allowing lead to leach into drinking water. The U.S. Environmental Protection Agency’s most recent Drinking Water Infrastructure Needs Survey and Assessment reported that New York has the sixth-highest number of lead service lines in the country, with an estimated 494,000 as of April 2023.
To address the problem, the state enacted the Clean Water Infrastructure Act of 2017, which required DOH to implement a Lead Service Line Replacement Program. The program provides municipalities with grants to replace lead pipes, with funds intended to be distributed equitably across the state. DOH was tasked with focusing on residential lead service line replacements and ensuring municipalities met eligibility requirements outlined in the law.
However, the audit found that DOH’s policies and procedures did not always ensure that grant funds were spent efficiently or effectively. Of the $30 million allocated to the program and awarded to municipalities, only $23 million had been spent by the time of the audit. Some municipalities failed to use the funds at all, while others spent only a portion of their grants. Four of the 44 municipalities awarded grants did not spend any money, and 25 did not fully use their allocations due to unclear guidance, uncertainty about eligible expenses, or reluctance to participate.
Auditors also raised concerns about how DOH determined which municipalities would receive funding. The department used a scoring system with three equally weighted factors and, in cases of a tie, prioritized municipalities with a higher number of homes built before 1939. This approach sometimes meant communities with higher rates of childhood lead exposure were overlooked. For example, one municipality with 3.65 percent of children showing elevated blood lead levels received a grant, while nearby communities with rates as high as 7.16 percent were passed over.
The audit also identified problems with the state’s tracking of water service lines. DOH did not ensure all covered water systems submitted complete and accurate service line inventories, as required by state and federal law. Of 2,951 water systems initially required to report, 951 missed the October 16, 2024 deadline, and as of August 2025, 140 systems still had not complied. Many inventories contained inaccurate or incomplete data, including lines listed as “lead” or “unknown” that had already been replaced.
DiNapoli’s report includes several recommendations for improving the program including developing and implementing stronger controls and monitoring practices for grant funds, including clearer guidance and support to ensure municipalities spend funds effectively. Auditors also recommended DOH establish formal procedures to ensure all water systems submit complete and accurate service line inventories, including annual updates.
In response to the audit, DOH generally disagreed with the findings. The agency noted that its guidance allowed the program to achieve a 90 percent compliance rate within months of the original deadline.