New York (WRGB) — An audit released by Thomas P. DiNapoli found shortcomings in the New York State Department of Health’s oversight of a program designed to help municipalities replace lead drinking water service lines.

According to the audit, insufficient controls and unclear guidance led to millions of dollars in state funding going unused or being spent on administrative costs instead of replacing lead service lines. Auditors also found that some communities with higher childhood blood lead levels were not prioritized for funding.

DiNapoli said,

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. 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 can corrode over time, allowing lead to leach into drinking water. According to the U.S. Environmental Protection Agency, New York has the 6-highest number of lead service lines in the country, with an estimated 494,000 as of April 2023.

The Lead Service Line Replacement Program was created under the Clean Water Infrastructure Act of 2017 and requires the Department of Health to distribute grants equitably across the state to help municipalities replace residential lead service lines.

Auditors found that of the $30 million allocated and awarded to municipalities, only $23 million was spent. Unused funds were not reallocated to other eligible communities. Four of the 44 municipalities awarded grants did not spend any funding, and 25 did not use their full awards, citing unclear guidance, uncertainty over eligible expenses, and reluctance to participate.

The audit also found that the Department of Health weighed its three scoring criteria equally when selecting municipalities, using the number of homes built before 1939 as a tiebreaker. As a result, some municipalities with higher childhood blood lead levels were passed over in favor of communities with more older housing but lower lead exposure rates. In one case, a municipality with 3.65% of children showing elevated blood lead levels received funding, while others in the same region with rates as high as 7.16% did not.

Additionally, auditors reported widespread issues with water system inventories. Nearly one-third of covered water systems missed a required October 2024 deadline to submit service line inventories, and as of August 2025, 140 systems were still out of compliance. Many inventories contained inaccurate or incomplete data, including service lines already replaced but still listed as lead or unknown.

The Department of Health generally disagreed with the audit’s findings, stating that its guidance resulted in a 90% compliance rate within months of the deadline. The agency’s full response is included in the audit report.

The audit follows a separate series released by DiNapoli in 2025 examining lead testing in school districts statewide. None of the 21 districts audited fully complied with state requirements, prompting additional recommendations aimed at improving testing, remediation, and notification procedures.