An audit released today by State Comptroller Thomas P. DiNapoli found a lack of sufficient controls and guidance from the Department of Health (DOH) for a state program intended to help municipalities replace lead drinking water service lines. The audit found millions of dollars in state funds left unused or spent on administrative costs rather than replacing lead lines and found that some communities with children with higher blood lead levels were not prioritized.

“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. “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.”

Residential service pipes that contain lead can corrode, causing lead to leach into drinking water. According to the U.S. Environmental Protection Agency’s most recently published Drinking Water Infrastructure Needs Survey and Assessment, 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 issue of lead contamination in drinking water, New York state enacted the Clean Water Infrastructure Act of 2017. The act required DOH to implement a Lead Service Line Replacement Program to provide municipalities with grants to replace lead water service lines. The law required DOH to allocate program funds equitably among all regions of the state, and municipality eligibility was pre-determined by DOH based on criteria set out in the act. DOH designated that the focus should be on residential lead service lines replacement.

DiNapoli’s auditors found DOH’s policies, procedures and guidance were not sufficient to ensure that funds were always spent in a timely manner and effectively. Of the $30 million allocated to the program and awarded to municipalities, only $23 million was spent, and the unspent funds were not reallocated to other eligible municipalities. Of the 44 municipalities awarded grants, four did not spend any of the funds and 25 did not spend their entire award for various reasons, including uncertainty about eligible uses of the funds, unclear guidance and unwillingness to participate.

After identifying eligible municipalities, DOH weighed its three scoring factors equally and, when there was a tie, used the number of houses built before 1939 as the deciding factor. This led to municipalities with higher rates of childhood blood lead levels sometimes being passed over in favor of municipalities with lower rates of childhood blood lead levels, but with more older homes. One municipality with 3.65% of children with elevated blood lead levels was awarded a grant, while others in the same region with rates as high as 7.16% were passed over.

Auditors also found that DOH did not ensure that all covered water systems submitted complete and accurate service line inventories in compliance with state and federal requirements, with 951 of 2,951 water systems (32%) covered by the initial inventory requirement missing the Oct. 16, 2024 deadline. As of August 2025, 140 systems still had not complied.

Further, many inventories contained inaccurate or incomplete data, including listing lines already replaced but still listed as composing “lead” or “unknown” material.

DiNapoli recommended DOH:

• Develop and implement enhanced controls and monitoring practices for grants administered by DOH. This may include, but not be limited to, developing policies and procedures and promoting enhanced participation in programs by providing clear guidelines and support to awardees to ensure funds are spent purposefully; and
• Develop and implement formal procedures to ensure all covered water systems submit complete and accurate service line inventories and provide annual updates when required. DOH should also take steps, such as providing additional support to help water systems accurately identify the material composition of service lines, to increase the number of service lines with known and verified materials.

DOH generally disagreed with audit’s findings, noting that it’s guidance allowed the program to achieve a 90% compliance rate within months of the due date. The agency’s response is included in the report.

Global Report on School District Lead Testing Audit Series

In 2025, DiNapoli released a series of audits examining school districts’ compliance with testing for lead in sources of drinking water. None of the 21 districts that were audited fully met all state requirements for testing or exempting all potable water outlets which may be accessible to students, staff and the public for lead contamination.

Only one district developed and maintained a complete sampling plan, only one had a complete remedial action plan in place, and only one reported testing results to all required parties within the required timeframes. Of the 6,431 water outlets auditors identified in select areas of the school districts, 1,867 (29%) outlets were either not sampled or secured against consumption, as required.

DiNapoli released a global report summarizing the audit series’ findings and recommendations that school officials:

• Develop procedures identifying all individuals involved in lead sampling, testing and reporting and their roles and responsibilities, including conducting a review of all work related to the lead testing program for accuracy and completeness;
• Develop and implement sampling and remedial action plans for all water outlets that could be used for drinking and cooking, including details on which water outlets will be considered exempt from sampling and their controls to secure against use;
• Identify which water outlets exceeded the lead action level and remove from service until it is confirmed they are below the lead action level or secure against use with proper controls; and
• Notify all required parties in the required time periods after lead testing results are received and maintain accurate records of all notification efforts performed.

Audit
Department of Health: Lead Service Line Replacement Program and Lead Service Line Inventory

Interactive Maps
Program Eligibility and Grant Spending

Related Reports
School Districts: Lead in Water: Testing and Reporting
Environmental Facilities Corp.: An Overview of Major Water Quality Improvement Programs