Water Infrastructure Subcontractor and Taxpayer Protection Act of 2025

This bill requires federal agencies administering water infrastructure funding (like the WIFIA program) to ensure projects have construction payment and performance security. It directly affects contractors working on federally assisted water projects and state/local governments with construction requirements. The key provision mandates that projects must have security covering at least 50% of the construction contract value - either through state/local rules or federal bonds meeting specific standards under 40 U.S.C. §3131(b). This aims to protect taxpayers by reducing the risk of unpaid subcontractors or project failures. The bill modifies existing federal requirements without creating new funding or altering project eligibility.