NASBP Focal Point – February 3, 2026

Federal Report

Federal: Last night the House Rules Committee officially advanced five funding bills totaling $1.2 trillion to fund the Pentagon, Departments of Labor, Treasury, Health and Human Services, Education, State and temporarily funding the Department of Homeland Security through Feb. 13 with the goal of negotiating a deal over immigration policy. The House is expected to vote on the spending package later today to end the partial government shutdown. Reports are the White House lobbied and convinced several Republican House members to support the spending package who were leaning towards voting no. Meanwhile, House Democratic leaders have stated they will not support the spending package, but some in their party may be willing to do so. For example, reports are that House Appropriations ranking member Rosa DeLauro announced she will vote for the package, breaking with House Minority Leader Jeffries.

State Report

KS SB 335 (Shallenburger) 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. Consequential damages are damages suffered that are not directly caused by a breach of contract, and 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). On Wednesday, NASBP’s First Vice President, Monica Donatelli, will testify 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. Other KS construction-related organizations are also expected to lend their support behind the effort.

NE LB 1126 (Moser) Establishes the Infrastructure Development Investment Program Act to assist in financing qualified projects by providing loans and other forms of financial assistance to eligible entities (public-private partnerships P3s) for the construction, improvement, or enhancement of transportation infrastructure. Eligible entities/bidders are required to furnish surety bonds for construction, reconstruction, improvement, maintenance, or repair of roads bridges, etc. LB 1126 was referred to the House Transportation and Communications Committee where a hearing is set for Feb. 3.

VA SB 165 (McPike) (update) Amends 11-4.7 allows 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.

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.