Water Infrastructure Subcontractor and Taxpayer Protection Act of 2025

This bill requires that federal water infrastructure projects funded through the WIFIA program must have construction payment and performance security covering at least 50% of the total construction contract value. It allows states or localities to satisfy this requirement if their existing laws already mandate similar security at that 50% threshold. If no such state/local requirement exists, the project must meet specific federal bond requirements under 40 U.S.C. §3131(b). The law directly affects contractors working on federally assisted water infrastructure projects and aims to protect taxpayers by ensuring financial security for project completion.