NASBP Focal Point – June 9, 2026

Federal Report

Federal: Last week, the House Appropriations Committee approved the fiscal year 2027 Transportation, Housing and Urban Development (THUD) Appropriations Act on June 3 by a vote of 34 to 27. According to analysis by the American Association of State Highway and Transportation Officials (AASHTO), there is a significant reduction in discretionary budget allocation provided for in the FY 2027 THUD bill, which amounts to a $10.7 billion or 10.4 percent reduction from the FY 2026 allocation.

Key elements of THUD include:

• Shifting $1 billion from the Federal Highway Administration’s National Electric Vehicle Infrastructure or NEVI formula program to Federal Aviation Administration’s Facilities and Equipment program.
• Moving $1.1 billion from the FHWA Highway Infrastructure Program to fund $725 million for highway earmarks, $200 million in tribal programs, and $200 million for truck parking grants; and
• Repurposing Federal Railroad Administration Fed-State Partnership program funds to provide $1.45 billion to the Amtrak National Network.

This week, the House is expected to consider a nearly $70 billion budget reconciliation package in order to fund Immigration and Customs Enforcement (ICE) and Border Patrol through 2029 after it passed the Senate last week. House Speaker Mike Johnson (R-LA) can only afford to lose two of his members while Democrats appear to be united in opposition.

NASBP submits comments to the Federal Acquisition Regulatory Council (FAR Council): Last week, NASBP submitted a pair of comment letters which included supporting the extension date to allow subcontractors to access copies of their payment bonds for federal construction contracts, and extending the deadline beyond January 31, 2027 for the collection of information pertaining to FAR 28 (Bonds/Insurance).

State Report

NASBP will continue to monitor state activity throughout the remainder of the year. As we go to press, there are currently 13 states in session. Please contact NASBP if you are aware of legislation and/or proposed regulations in your state that may impact the surety industry.

VT H.944 (Transportation Committee) Amends 19 V.S.A. § 10 by waiving and/or increasing statutory bond threshold requirements for VTDOT projects from $100,000 to $250,000. H.944 is a comprehensive spending bill that establishes Vermont’s Transportation Program for FY2027 and enacts a range of changes to transportation-related laws such as updates to state highway and bridge standards, inspection, and an extension of public-private partnership (P3) authority for transportation projects to 2029. NASBP sent a letter to the House and Senate Transportation Committees in opposition to the bill. H.944 passed the House 84-46 and was amended in the Senate but the House refused to concur. House and Senate conferees were appointed to reach an agreement. 

On May 26, the House and Senate conferees agreed to final language which included raising and/or waiving statutory bonding requirements as referenced above in 19 V.S.A. § 10, for VTDOT contracts. The House adopted the Committee Report on May 29.

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.