This bill amends the Water Infrastructure Finance and Innovation Act to establish new protections for subcontractors and taxpayers working on federally funded water projects. The legislation requires that water infrastructure projects receiving federal financing assistance must have payment and performance security in place during construction, ensuring that contractors and workers are protected if a project runs into financial trouble. Projects can satisfy this requirement either through existing state or local payment and performance security laws if they provide at least 50 percent coverage of the construction contract value, or through federal bonding requirements similar to those used in other federal construction projects. The bill affects water utilities, construction companies, subcontractors, and workers involved in water infrastructure projects that receive federal financing. No specific funding amounts or implementation timelines are included in the legislation.