New York Ties Stormwater Funding to Performance

City’s pay-for-results approach aims to speed up green infrastructure delivery

21 Mar 2025

New York City has adopted a new funding model for stormwater infrastructure that links payments to results, marking a shift in how cities may respond to rising flood risks. Under a pilot agreement with engineering consultancy Arcadis, the city will only pay for projects that meet measurable runoff reduction targets.

The initiative, known as Resilient NYC Partners, departs from conventional procurement models by conditioning contractor payments on verified outcomes. Officials say the scheme aims to deliver faster and more cost-effective improvements, particularly in areas vulnerable to climate-driven storms.

One of the early projects under the programme is a retrofitted parking lot at the Pratt Institute in Brooklyn. Designed and built by Arcadis, the site is now able to divert more than 1.75 million gallons of stormwater annually from the city’s ageing sewer system. The work forms part of a $6.7mn pilot covering three separate locations, including a second completed site at Greenwood Cemetery.

By focusing on large private parcels for green infrastructure upgrades such as permeable surfaces and underground storage, city planners hope to unlock urban land typically excluded from public investment. Arcadis is responsible for design, construction and ongoing maintenance, reducing the administrative burden on city agencies and accelerating delivery timelines.

“This model rewards results, not promises,” said Christine Knapp, senior advisor at the Green Infrastructure Leadership Exchange. “It paves the way for greater innovation and accountability in urban flood prevention.”

Despite early successes, questions remain about the programme’s long-term viability. Concerns include how outcomes will be verified, whether smaller cities with fewer resources can adopt similar strategies, and the complexity of scaling such models across varied regulatory environments.

Still, interest is growing. Officials in other US cities are closely monitoring the outcomes in New York, where traditional infrastructure often struggles to keep pace with more frequent extreme weather events.

The city has not disclosed timelines for broader rollout but said further sites are under review. With climate adaptation rising on municipal agendas, New York’s approach could offer a new template for managing water risk in densely built environments.