NASBP Focal Point – June 5, 2025

Federal Report

Federal: Just prior to the Memorial Day recess, House Republicans passed the President’s “Big, Beautiful Bill,” 215-214. Now the battle moves to the Senate, where several Senate Republicans have raised concerns over the package. Senate Majority Leader John Thune is facing a tough challenge and can only afford to lose three members of his caucus (Senator Rand Paul has already committed to oppose the bill). Republican Senators Collins, Murkowski, and Hawley have raised concerns about funding cuts to Medicaid. Senator Tillis opposes rolling back tax cuts dedicated to solar, wind and geothermal energy, while Senator Ron Johnson is pushing to cut deficit spending. Senate Republicans may seek to find savings in their bill, which do not impact their voting constituents, such as keeping the tax deduction for state and local taxes (SALT) at $10,000 versus the $40,000 SALT deduction approved in the House. Leader Thune has committed to getting the bill to the President’s desk by the July 4 recess.

Coalition supporters of S.570 (Kelly/Cramer), the “Water Infrastructure Subcontractor & Taxpayer Protection Act,” delivered a letter to the leadership of the Senate Committee on Environment and Public Works to request the inclusion of the S. 570 in the next Committee markup. S. 570 requires performance and payment guarantees for loans/grants and P3s utilized through the Water Infrastructure Finance and Innovation Act (WIFIA). NASBP will continue to keep you informed on this effort moving forward.

State Activity

Update: LA HB209 (Brass) As originally introduced, HB209 would have increased the bond threshold in excess of $500,000 only in Ascension Parish. As amended and passed by the Senate Committee on Transportation, Highways and Public Works, HB209 raises the bond threshold to $250,000. NASBP delivered a letter in opposition to the Committee, to request they vote NO on HB209. NASBP, ASA and SFAA also requested their Louisiana members submit talking points in opposition to the bill. On June 2, the Senate passed the bill 38-0. On June 4, the House concurred with the Senate amendment and passed the bill 96-0. HB209 sets forth a terrible precedent by allowing a single Parish to circumvent established Louisiana state bonding requirements (current bond threshold is $25,000/$100,000 Highway), which may lead to procurement malfeasance and favoritism.

Update: LA HB687 (Wright) Authorizes the Port of New Orleans to utilize public-private partnerships (P3s) for the St. Bernard Transportation Corridor roadway project. P3 agreements require a bond with sufficient surety and must adhere to the bond requirements set by the Louisiana DOT pursuant to R.S. 48:256.3. HB687 passed the House 75-21 and the Senate 36-0.

Update: ME LD 1761 (Morris) Declares provisions in contracts that indemnify or hold harmless a party from claims or liabilities related to their own intentional acts or omissions to be void and unenforceable, as they contravene public policy in Maine. LD 1761 allows for exceptions which includes insurance contracts for workers’ compensation or any other insurance contracts or agreements issued by an insurer licensed to engage in the business of insurance in this State. Our sources indicate, an amendment was offered in the  Joint Committee on Health Coverage, Insurance and Financial Services to specifically exempt surety. At the request of its NASBP Maine members, NASBP provided background materials to address this issue such as a 50-state survey of anti-indemnity statutes as an example of how other states have addressed indemnity prohibitions.

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.