Merchants Advocates for Surety Industry on Capitol Hill
March 5, 2025
Surety safeguards taxpayer dollars, ensures project completion, and protects businesses—an essential message Merchants Bonding CompanyTM helped deliver in Washington, D.C., on February 27, 2025, at the NASBP/SFAA Legislative Fly-In. Hosted by the National Association of Surety Bond Producers (NASBP) and the Surety & Fidelity Association of America (SFAA), this annual event provides an opportunity to advocate for legislative priorities that impact the surety industry.
Strengthening Infrastructure with Surety Protections
A primary focus this year was securing support for the Water Infrastructure Subcontractor and Taxpayer Protection Act (S.570 / H.R.1285). This bipartisan legislation would require payment and performance bonding on all federally funded public-private partnership (P3) projects under the Water Infrastructure Finance and Innovation Act (WIFIA), aligning it with bonding protections already established for transportation projects under Transportation Infrastructure Finance and Innovation Act (TIFIA).
Why It Matters:
- Since its inception, WIFIA has financed $47 billion in water infrastructure projects, supporting 155,000 jobs.
- Without surety bonds, projects are at greater risk—unbonded projects default 2.5 to 10 times more often and cost 85% more to complete after default.
- This legislation ensures the EPA and Army Corps of Engineers require bonding protections on all WIFIA-funded construction projects, preventing costly defaults and safeguarding taxpayer dollars.
Making the Case for Surety
The Legislative Fly-In allowed Merchants' Shana Rothman, Maria Sears, and Steve Dorenkamp to join meetings with members of Congress and their staff, securing bipartisan support for consistent bonding protections across all federally backed infrastructure projects. Merchants remains committed to ensuring taxpayer dollars are protected, projects are completed, and subcontractors and suppliers receive fair payment.