Water Infrastructure Subcontractor and Taxpayer Protection Act of 2025
- Bill Number
- H.R. 1285
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Water Resources Development
- Status
- Introduced
- Latest Action
- 2025-02-13: Referred to the Subcommittee on Water Resources and Environment.
- Last Updated
- 2026-06-25T08:08:03Z
AI-Generated Summary
Purpose of the Legislation
The Water Infrastructure Subcontractor and Taxpayer Protection Act of 2025 aims to protect subcontractors, suppliers, and taxpayers involved in water infrastructure projects funded through the Water Infrastructure Finance and Innovation Act of 2014 (WIFIA). It does this by requiring financial safeguards—known as payment and performance security—to ensure that construction contracts are completed as promised and that workers and suppliers get paid, reducing the risk of project delays or failures that could waste public funds.
Key Provisions
- Eligibility Requirement for WIFIA Funding: Projects seeking low-interest loans or other financing under WIFIA must now include payment and performance security for their construction phase. This security acts like a financial guarantee (e.g., bonds) to cover costs if a contractor fails to pay subcontractors or complete the work.
- Compliance Options:
- If state or local laws already require such security and it covers at least 50% of the total construction contract value, this meets the federal standard.
- If no state/local rules apply or they fall short of the 50% threshold, federal rules kick in: Projects must use payment and performance bonds similar to those required for federal construction contracts (referencing the Miller Act, which mandates bonds equal to the full contract amount to protect against non-payment or non-performance).
- Oversight by Federal Agencies: The Environmental Protection Agency (EPA) or the U.S. Army Corps of Engineers (as WIFIA administrators) must verify and enforce these security measures before approving funding.
Significant Changes to Existing Law
- Amends Section 5028(a)(1)(C) of WIFIA (33 U.S.C. 3907) by adding a new subsection on construction security, building on existing financing safeguards.
- Introduces a minimum 50% security threshold for state/local compliance, where none existed before, and mandates full federal bonding standards as a fallback.
- Shifts from voluntary or project-specific protections to a mandatory federal baseline, aligning WIFIA more closely with protections in traditional federal procurement laws like the Miller Act.
Potential Impacts
- On Government Agencies: The EPA and Army Corps will need to review security arrangements during project selection, potentially increasing administrative workload but reducing long-term risks of funding losses from project failures.
- On Citizens and Taxpayers: Enhances protection against cost overruns or abandoned projects, potentially saving public money on water infrastructure like dams, pipelines, and treatment plants; could lead to more reliable services for communities relying on these systems.
- On Contractors and Subcontractors: Provides stronger assurances of payment, which may encourage smaller firms to bid on projects, but could raise upfront costs due to bonding requirements.
- No Apparent International Relations Impact: The bill focuses on domestic water projects and does not address cross-border issues.
Main Stakeholders Affected
- Federal Agencies: EPA and U.S. Army Corps of Engineers, responsible for enforcing the new rules.
- State and Local Governments: Project sponsors who apply for WIFIA funding; they may need to adjust contracts to meet the 50% security minimum.
- Infrastructure Developers and Contractors: Prime contractors must secure bonds or equivalent, affecting bidding and costs; subcontractors benefit from payment protections.
- Taxpayers and the Public: Indirectly protected through reduced financial risks on federally backed projects.
Notable Legal, Constitutional, or Political Implications
- Legal: Reinforces federal contracting standards (e.g., via the Miller Act reference) without creating new litigation risks, but could lead to disputes over what counts as "adequate" state/local security. Ensures WIFIA projects align with broader U.S. Code protections for labor and fiscal responsibility.
- Constitutional: No direct challenges; supports Congress's spending power under Article I by conditioning federal funds on safeguards against waste.
- Political: Promotes bipartisan infrastructure goals by addressing subcontractor vulnerabilities, potentially appealing to labor advocates and fiscal conservatives; may influence future funding bills by setting a precedent for security in public works.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (26)
Rep. Pappas, Chris [D-NH-1], Rep. Norcross, Donald [D-NJ-1], Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Kean, Thomas H. [R-NJ-7], Rep. Balderson, Troy [R-OH-12], Rep. Brownley, Julia [D-CA-26], Rep. Hayes, Jahana [D-CT-5], Rep. Stauber, Pete [R-MN-8], Rep. Fitzgerald, Scott [R-WI-5], Rep. Webster, Daniel [R-FL-11], Rep. Hurd, Jeff [R-CO-3], Rep. McDowell, Addison P. [R-NC-6], Rep. Mann, Tracey [R-KS-1], Rep. Carter, Troy A. [D-LA-2], Rep. Lawler, Michael [R-NY-17], Rep. Nunn, Zachary [R-IA-3], Rep. Flood, Mike [R-NE-1], Rep. Ezell, Mike [R-MS-4], Rep. Nehls, Troy E. [R-TX-22], Rep. Downing, Troy [R-MT-2], Rep. Owens, Burgess [R-UT-4], Rep. Wied, Tony [R-WI-8], Rep. Patronis, Jimmy [R-FL-1], Rep. Morrison, Kelly [D-MN-3], Rep. Garbarino, Andrew R. [R-NY-2], Rep. Bresnahan, Robert P. [R-PA-8]
Recent Actions
- 2025-02-13: Referred to the Subcommittee on Water Resources and Environment.
- 2025-02-13: Referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-02-13: Referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-02-13: Introduced in House
- 2025-02-13: Introduced in House
Bill Versions
- Water Infrastructure Subcontractor and Taxpayer Protection Act of 2025 — issued 2025-02-13 — PDF (4 pages)