The U.S. Senate passed an amendment that mandates payment and performance security on all federally financed infrastructure projects receiving loans and grants under the Transportation Infrastructure Finance and Innovation Act (TIFIA).
The passage of the so-called Van Hollen amendment — sponsored by U.S. Sens. Chris Van Hollen (D-MD), Mike Rounds (R-SD), Mark Kelly (D-AZ), and Joni Ernst (R-IA) – drew praise from several industry groups, including the Surety & Fidelity Association of America (SFAA), the National Association of Surety Bond Producers (NASBP) and the American Property Casualty Insurance Association (APCIA).
“This provision will ensure those projects that receive federal financing are adequately protected as Congress prepares to send critical infrastructure project dollars to every state. Furthermore, this common-sense provision protects taxpayer resources, small businesses, and workers engaged in these large and complex projects,” Nat Wienecke, senior vice president for Federal Government Relations and Political Engagement for APCIA, said.
The vote passed by an overwhelming 97-0 majority.
“This 97-0 vote represents a truly bipartisan effort to provide essential protections and services necessary to support our country’s immediate and future infrastructure needs,” SFAA President and CEO Lee Covington said. “It demonstrates the value and importance construction surety bonds play in the success of all federally-financed infrastructure projects.”
The Senate is expected to vote on the final bipartisan infrastructure deal this week.
“Assuring the delivery of much-needed, quality infrastructure is what this bipartisan amendment will accomplish,” Mark McCallum, CEO of NASBP, said. “There simply is no substitute for the security that performance and payment bonds bring to construction projects of all types, especially those financed in whole or in part with federal dollars, and the Senate is to be congratulated for its unanimous vote to imbue these protections in the infrastructure package.”