Sponsors (3)
The bill increases payment and performance security for WIFIA-funded water projects—protecting taxpayers, lenders, and construction workers—while imposing administrative review requirements and the potential for higher financing costs and project delays.
Taxpayers and WIFIA lenders face lower risk because projects must carry performance security, reducing likelihood of incomplete projects and additional public costs.
Construction contractors and workers are more likely to get paid because WIFIA-funded projects must have payment bonds that meet federal or adequate State/local standards.
State and local governments and project owners gain clearer legal standards for required payment and performance security on WIFIA-funded construction projects, reducing legal uncertainty.
Borrowers and utilities may face higher project costs or tighter financing conditions if projects must meet higher federal bond amounts where local rules are insufficient.
Local and state governments and communities could see slower project starts and delayed delivery of water infrastructure benefits while agencies assess compliance with the new security requirements.
Federal employees (e.g., the Secretary or EPA Administrator and staff) will face added administrative burden to evaluate and enforce State/local security standards for each WIFIA project.
Based on analysis of 2 sections of legislative text.
Requires separate construction payment and performance security for WIFIA-assisted projects and accepts qualifying State/local rules or defaults to federal bond standards.
Official title: Amend the Water Infrastructure Finance and Innovation Act of 2014 to establish payment and performance security requirements for projects, and for other purposes.
Introduced February 13, 2025 by Mark Edward Kelly · Last progress February 13, 2025
Changes federal WIFIA project security rules by separating the existing single “security” requirement into two distinct obligations: one preserving the current financing-security rule and a new requirement that construction projects have payment and performance security (bonds) that meet specified federal standards. It directs the Secretary or EPA Administrator (as applicable) to ensure those payment and performance protections apply to projects that receive WIFIA assistance and allows State or local bond rules to satisfy the federal requirement when they meet certain conditions, otherwise defaulting to federal bond standards.