NASBP Focal Point – January 17, 2024

Federal Report

Budget Showdown: Congress returned from after the holiday recess last week and now all eyes have turned to funding the federal government as the first continuing resolution is set to expire on January 19. Since returning from the holiday recess, Senate Majority Leader Chuck Schumer (D-NY) and House Speaker Mike Johnson (R-LA-4th) have brokered a tentative agreement to avoid a government shutdown. The two leaders announced support for a continuing resolution (CR) that extends the programs set to expire on Friday until March 1 and the rest of the government, including the Department of Defense (DoD), until March 8 (which is also the current FAA authorization deadline). However, Members of the House Freedom Caucus may be willing to shut down the government unless more funding is dedicated to U.S. border protection. Speaker Johnson, like his predecessor, Speaker Kevin McCarthy, will likely have to secure votes from the Democrats in order to avoid a government shutdown.

Legislative Fly-in, Feb. 28/29: Register Now!

Mark your calendar for February 28 and 29 to attend the 2024 Legislative Fly-in. The Fly-in begins in earnest on February 28 with what we’ve coined as the “Washington Program,” which includes political observations from Amy Walter, Editor-in-Chief of the Cook Political Report, and a surety executives panel discussion regarding current surety market conditions and issues. The surety panel will be moderated by NASBP Third Vice President Monica Donatelli, and the panelists will include Mike Ito of Amerisure, Rick Ciullo of The Hartford, and Bob Murray of Zurich. February 29 is dedicated entirely to Capitol Hill appointments. The Fly-in host hotel, The Hilton Washington, DC, Capitol Hill, is just a few blocks from the U.S. Capitol. There will be no registration fees to attend, making it the perfect time to join your NASBP colleagues in the effort to ensure federal policymakers on Capitol Hill understand the significant role bonds play to protect taxpayer funds and advance public works infrastructure projects. Fly-in attendees must register separately for these three items: 1: Register for the reception/fly-in at the 2024 fly-in page; 2: Register here to schedule your Capitol Hill appointments arranged by our outside consulting firm, Advocacy Associates; and 3: Reserve your room by accessing the NASBP Group Block .

State Report

BEAD Broadband Deployment: According to the National Conference of State Legislatures (NCSL), roughly 9 in 10 American adults access the internet, which are considered a necessity in all facets of life, business and commerce. However, internet service in some rural locations of the country are either unavailable or inadequate. The Broadband Equity, Access, and Deployment (BEAD) Program, which was created and funded ($42.5 billion) through the Infrastructure Investment & Jobs Act (IIJA), is dedicated to assisting states and territories with the construction, expansion and buildout of rural broadband networks. As of October 2023, 41 eligible entities (states/localities) publicly shared their five-year BEAD plans with the National Telecommunications and Information Administration (NTIA), which oversees the BEAD Program. Funding for the BEAD program for the states, Washington, D.C., and the U.S. territories, can be viewed at internetforall.gov.

BEAD Working Group 

In November, NTIA announced that surety bonds could be furnished as an alternative form of security to letters of credit (LOCs) to protect the government’s financial interest for funding grants administered through the BEAD Program. Subsequently, the surety industry formed a BEAD Working Group to conceptualize a bond obligation for the BEAD Program. NASBP and SFAA staff/members will meet with NTIA staff to seek guidance and expectations pertaining to the risks to be offset by the bond for the build-out of broadband networks.

Industry Relations 

NASBP and ASA sign strategic alliance: On January 16, NASBP and ASA memorialized a formal agreement to further a longtime working relationship to amplify each organization’s capabilities on surety and risk management initiatives and on advancing legislative and regulatory policies beneficial to subcontractor interests, including their access to bonding. The press release, which includes quotes from NASBP and ASA’s CEO is available here.

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.