NASBP Focal Point – July 25, 2023

Federal Report

Senate set to pass annual defense authorization (NDAA): This week, Senate Majority Leader Chuck Schumer (D-NY) has scheduled floor time to consider the annual defense spending bill–aka, the National Defense Authorization Act (NDAA)–before Congress departs for its August recess. Senate Democratic Leaders are mindful of what occurred during House NDAA deliberations a few weeks ago, when the House passed its version by a vote of 219-210, which included the support of only four democrats. Leader Schumer remains hopeful of securing a bipartisan consensus by attempting to avoid hot-button continuous issues, which transpired in the House. Members of the Construction Industry Procurement Coalition and staff of Rep. Peter Stauber (R-MN-8th) attempted to include, H.R. 2726 (Stauber-MN), the Small Business Payment for Performance Act, legislation to require prompt payment to contractors for change orders, in the House NDAA, but were unsuccessful. CIPC will continue to seek additional support for the legislation, which includes the introduction of a Senate companion bill.

S.2206 (Cardin(D-MD)): Raises the bond guarantee of the SBA Bond Guarantee Program from $6.5M to $10M and provides the SBA Administrator with the authority to increase the bond guarantee up to $20M. At the 2023 NASBP Annual Meeting, speaking before the members of the NASBP Small & Emerging Business Committee, the Director of the SBA Office of Surety Guarantees noted that increasing the guarantee was a legislative policy the Office was contemplating. S.2206 was referred to the Committee on Small Business and Entrepreneurship.

Podcast NASBP and ASA: Government Relations Work and Wins! During this recent podcast, NASBP is joined by the American Subcontractor’s Association (ASA) to discuss current federal legislative initiatives that two organizations are jointly collaborating on in Congress such as H.R. 2726 (as noted above) and H.R. 1740, legislation to amend the Water Infrastructure Finance and Innovation Act (WIFIA) to ensure performance and payment protections are in place on WIFIA funded projects and for WIFIA P3 agreements.

NASBP joins ASAE’s Tomorrow’s Workforce Coalition Act (S.722/H.R.1477): Expands eligible uses of tax-favorable 529 savings plans to cover costs associated with workforce training and credentialing programs, such as professional certifications. S.722/H.R. 1477 provides valuable tax-advantaged resources for workers who pursue career growth, mid-career changes, or alternative career pathways, which may also help to address the worker shortage in the construction industry. A number of construction and insurance related organizations have signed on as supporters. The American Society of Association Executives (ASAE), who has spearheaded this legislative initiative, has created several resources including a one-pager, membership flyer, and a list of current supporting organizations.

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.