Section 1. Short title
This Act may be cited as the Water Infrastructure Subcontractor and Taxpayer Protection Act of 2025.
Section 2. Federal requirements for WIFIA eligibility and project selection
Section 5028(a)(1)(C) of the Water Infrastructure Finance and Innovation Act of 2014 (33 U.S.C. 3907(a)(1)(C)) is amended—
(1) by striking The Secretary and inserting the following:
(i) Financing security features
The Secretary
(1) ; and
(2) by adding at the end the following:
(I) In general
The Secretary or the Administrator, as applicable, shall ensure that the construction of a project carried out with assistance under this subtitle has payment and performance security in accordance with this clause.
(II) Use of State or local requirements
The Secretary or the Administrator, as applicable, shall consider subclause (I) to be satisfied with respect to the construction of a project if—
(aa) applicable State or local law requires payment and performance security with respect to the construction; and
(bb) the amount of that payment and performance security is not less than 50 percent of the total construction contract amount.
(III) Use of bonds
With respect to the construction of a project to which no State or local payment and performance security requirements apply or for which the amount of payment and performance security under applicable State or local payment and performance requirements does not meet the requirement described in subclause (II)(bb), the Secretary or the Administrator, as applicable, shall require, for purposes of satisfying subclause (I), that the requirements described in paragraphs (1) and (2) of section 3131(b) of title 40, United States Code, be met.