NASBP Focal Point - January 23, 2025

Federal Report

Oath of Office/AI/Budget: President Donald J. Trump was sworn in on Monday at high noon making him the 47th U.S. President. On Tuesday, Trump announced a multibillion dollar investment for the development of artificial intelligence (AI) infrastructure. It is being reported that tech industry partners involved in the joint venture, called “Stargate,” include OpenAI, Softbank and Oracle. AI development is a significant part of the Trump administration’s tech policy proposals, seeking to advance growth in not just the technology itself, but the construction of data centers. Also on Tuesday, President Trump, met with Speaker Mike Johnson (R-LA) and Senate Majority Leader John Thune (R-SD) to discuss budget/reconciliation matters. According to reports, Johnson disputed suggestions that the House and Senate were still divided on process, insisting they had "a plan pretty well formulated now." Thune said the discussion was more focused on "what we can get done" adding, "we're obviously all interested in getting to the same destination."

BEAD: Department of Commerce’s National Telecommunications and Information Administration (NTIA) has approved the final proposals for Louisiana, Delaware, and Nevada for the Broadband Equity, Access, and Deployment (BEAD) program. This is the final step required under the BEAD statute before states move forward with signing agreements with the internet service providers it has selected to build BEAD-funded networks. Click here to track deployments for the BEAD program. As a reminder, the BEAD Bond Kit, is available in Word fillable documents, which includes two performance bond forms, model language for state broadband offices to insert into award agreements, and a sample letter template to confirm for state broadband offices the bond amount for which an internet service provider (ISP) or its construction contractor initially qualifies.

2025 Legislative Fly-in: The annual Federal Legislative Fly-in will take place February 26-27, 2025. The host hotel, The Hilton Washington, DC, Capitol Hill, is just a few blocks from the U.S. Capitol. The room block is sold out. However, rooms are still available outside of the NASBP block. There are no registration fees to attend. The event begins at 2pm on February 26, which is dedicated as the “Washington Program,” and includes remarks from former U.S. Secretary of Transportation Ray LaHood followed by a panel comprised of Capitol Hill staffers. February 27 is dedicated solely to Capitol Hill appointments. You must register in advance to attend this event.

State Activity

MS HB 196 (Remak) Amends Section 31-5-51 (MS LMA) by increasing the bond threshold from $25K, to $75K for public works contracts. The same bill was introduced in 2024 but failed to advance in the Senate. HB 196 was referred to the House Judiciary Committee.

MD SB 427/HB 498 (Governor) Creates the Economic Inclusion Fund to administer such programs as the Small Business Surety Bond Fund established under the Maryland Small Business Development Financing Authority (MSBDFA). According to the legislation, the Program has the authority guarantee up to the lesser of 90% or $3M of its loss under a bid, payment or performance bond. SB 427 was referred to the Senate Budget and Taxation and the Senate Finance Committees. HB 498 was referred to the House Ways and Means and the Appropriations Committees.

NM HB 128 (Szczepanski) Creates the local solar access energy fund to provide grants to local entities for solar power energy. Entities shall require a contractor of a project funded through grant funds to furnish performance and payment bonds in accordance with 13-4-18 NMSA (LMA).

TX SB 794 (Alvarado) Amends Chapter 223 of the transportation code to permit the TX DOT to use the construction manager-general contractor delivery method to select a general contractor for a state highway project. The CM shall deliver any performance and payment bonds not later than the 10th day after the award date. The CM may furnish a bid bond or other financial security acceptable to the department to ensure it will furnish the required performance and payment bonds when a guaranteed maximum price is established.

If you are aware of any bills impacting the industry, please reach out to Larry LeClair, NASBP's Director of Government Relations, and let us know.