NASBP Focal Point – February 27, 2026

Federal Report

Legislative Fly-in: This year’s Federal Legislative Fly-in attendance surpassed previous years, where 135 registrants attended 158 meetings, representing 34 states. Fly-in attendees were also fortunate to meet with 20 members of Congress. The breakdown included 66 Senate and 92 House meetings. Attendees were well-armed with information prior to their visits, which included talking points and a one-pager seeking additional Congressional support for H.R. 1285/S.570. This legislation requires performance and payment guarantees for P3s and other projects receiving funding through the Water Infrastructure Finance and Innovation Act (WIFIA). NASBP would like to personally thank Fly-in attendees for taking time out of their busy schedules to come to Washington and advocate on behalf of the surety industry. For those of you who were unable to attend this year’s fly-in, please consider attending a future Fly-in.

State Report

IL HB5042/SB3760 Raises the bond threshold for Illinois Department of Transportation construction contracts from $500,000 to $10,000,000. The legislation also increases the bond threshold for other state public contracts from $150,000 to $5,000,000. NASBP asked Illinois NASBP members to reach out to their contacts at the state/local organizations of the AGC, ABC, and others to make those organizations aware of this legislation. NASBP has alerted the National ASA Office. HB5042 was referred to the House Tax Policy/Taxes Subcommittee.

In 2023, legislation was introduced, SB157/HB2482, to amend Illinois’ Little Miller Act by raising the bond threshold from $50,000 to $5,000,000. However, stakeholders agreed to compromise language to raise the bond threshold for ILDOT and IL Toll Authority contracts to $500,000. For all other state public works contracts, the bond threshold remained at $150,000. Both provisions are set to sunset on January 1, 2029, when the bond threshold reverts back to $50,000.

KS SB 335 (Shallenburger) (update) Amends K.S.A. 16-1901, 16-1907, the Kansas Fairness In Public Construction Contract Act, by requiring construction contracts to include a mutual waiver of consequential damages provision. Consequential damages are damages suffered that are not directly caused by a breach of contract, and mutual waivers promote clarity, fairness, and balanced risk allocation at the outset of a project, benefiting both contracting parties–the project owner and the contractor. Mutual waivers have become standard practice in the construction industry and are included in widely used contract forms published by the American Institute of Architects (AIA). NASBP’s First Vice President, Monica Donatelli, testified before the Senate Committee on Commerce in support of the SB 335. NASBP and the American Subcontractors Association (ASA) have submitted statements in support of the bill. On February 18, SB335 passed the Senate 37-2. A hearing was held on Feb. 25 in the House Committee on Commerce, Labor and Economic Development where NASBP and others submitted statements in support of the bill.

KS SB 436 (Committee) Amends the bond threshold for county construction contracts from $25,000 to $100,000. NASBP and the American Subcontractors Association submitted letters in opposition to the Kansas Senate Committee on Local Government, Transparency and Ethics. On February 18, SB436 failed in the Senate 12 (yea), 26 (nay).

VA SB 165 (McPike) (update) Amends 11-4.7 to allow the use of retainage bonds in construction contracts, enabling contractors or subcontractors to provide a bond as security in place of cash retainage. When a contractor or subcontractor tenders a retainage bond, they can request the release of equivalent withheld retainage from the owner or general contractor, provided they are not in default. SB 165 is supported by the VA Chapter of the American Subcontractors Association and other construction-related VA organizations. On Jan. 30, SB 165 passed the Senate by voice vote 38-o. SB 165 was reported from the House subcommittee on Procurement/Open Government 10-0.

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.