A bipartisan group of lawmakers has introduced legislation designed to strengthen financial safeguards for water infrastructure projects receiving federal financing. The Water Infrastructure Subcontractor and Taxpayer Protection Act would mandate payment and performance bonding for projects funded through the Water Infrastructure Finance & Innovation Act (WIFIA), including public-private partnerships.
The proposed legislation, introduced by Senators Mark Kelly and Kevin Cramer, and Representatives Mike Bost and Chris Pappas, seeks to create parity with existing federal infrastructure project requirements. By ensuring comprehensive bonding protections, the bill aims to safeguard workers, subcontractors, suppliers, and taxpayer investments.
The legislation addresses a critical gap in current infrastructure financing regulations. Currently, WIFIA projects lack the same bonding requirements applied to other federally funded infrastructure initiatives, such as those under the Transportation Infrastructure Finance & Innovation Act (TIFIA).
Ryan Work, President and CEO of the Surety & Fidelity Association of America (SFAA), emphasized the importance of modernizing WIFIA, stating that bonding provisions are essential for preserving taxpayer dollars, ensuring project completion, and promoting economic growth.
If passed, the bill would provide additional financial security for complex infrastructure projects, potentially reducing risks associated with large-scale public works developments. The proposed protections could help prevent project delays, financial losses, and ensure more reliable infrastructure development across the United States.
