The Water Infrastructure Subcontractor and Taxpayer Protection Act of 2025 modifies federal requirements for water infrastructure projects that receive financing through the Water Infrastructure Finance and Innovation Act (WIFIA). Specifically, it requires that construction projects funded under WIFIA must have payment and performance security—essentially financial guarantees—to protect subcontractors and taxpayers. Projects can satisfy this requirement either by following existing state or local payment and performance security laws (if those require at least 50 percent of the total construction contract amount in security) or by using federal bond requirements under existing law if state or local requirements are insufficient. The bill affects water infrastructure projects seeking federal financing assistance and aims to ensure that construction work is completed properly and that workers and suppliers are paid even if a contractor fails. No specific funding amount or timeline is specified in the legislation.
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