Senators Mark Kelly and Kevin Cramer, alongside Representatives Mike Bost and Chris Pappas, have introduced bipartisan legislation designed to modernize the Water Infrastructure Finance & Innovation Act (WIFIA) by mandating payment and performance bonding for infrastructure projects.
The Water Infrastructure Subcontractor and Taxpayer Protection Act would require bonding for projects receiving WIFIA assistance, including public-private partnerships (P3s). This legislative effort aims to provide comprehensive financial protections similar to those already established in other federally funded infrastructure programs.
Ryan Work, President and CEO of the Surety & Fidelity Association of America (SFAA), emphasized the importance of implementing consistent protection mechanisms across infrastructure projects. The proposed legislation ensures parity between traditional project delivery methods and P3 projects, potentially reducing financial risks for workers, subcontractors, suppliers, and taxpayers.
By aligning WIFIA requirements with existing standards in programs like the Transportation Infrastructure Finance & Innovation Act (TIFIA), the bill seeks to create a more standardized approach to infrastructure project financing and risk management. This could lead to increased transparency, reduced financial vulnerability, and more reliable project completion across water infrastructure initiatives.
The proposed legislation represents a significant step toward modernizing infrastructure financing, offering enhanced economic protections and potentially promoting more stable and secure infrastructure development nationwide.
