NASBP Focal Point – May 5, 2026

Federal Report

Federal: Congress is on recess this week during the district/state work period, but, when lawmakers return, the month of May is shaping up to be extremely busy, especially on transportation matters. The House Appropriations Subcommittee on Transportation, Housing and Urban Development (THUD) is scheduled to markup its fiscal 2027 spending bill on May 21. However, the bill text has not been released. Expected to testify before THUD, is Transportation Secretary Sean Duffy concerning the Administration’s budget request. While it was reported that the House Transportation & Infrastructure Committee was expected to markup the surface transportation reauthorization bill last week, that may occur sometime this month. Lawmakers face a Sept. 30 deadline to reauthorize expiring surface programs.

On July 16, 2025 the Senate Small Business Committee marked S. 2232, introduced by Ranking Member Ed Markey (D-MA), to amend the Small Business Investment Act. As amended, the legislation raises the guarantee contract size for the SBA Bond Guarantee Program from $6.5M to $18M. However, that limit may be reduced by 33% if the SBA notifies Congress that it needs supplemental funding for the revolving fund. Section 2 of the bill amends 15 US 694 (c) to limit use of the revolving fund to not more than 2% to cover administrative expenses incurred by the Program. Finally, the legislation initiates two reporting requirements: 1) an annual report on the status, activity, and financial stability of the Program, and 2) a one-time GAO report assessing application efficiency and methods to streamline the application process for contractors. On May 1, the Senate approved S.2232 by unanimous consent.

State Report

MD SB 388 (Augustine) Governor Wes Moore’s legislative package establishes the Delivering Economic Competitiveness and Advancing Development Efforts (DECADE) to strengthen the state’s economic competitiveness. The legislation promotes the administration’s ongoing commitment to delivering private investment to the state, which includes making structural and guarantee changes to MD’s Small Business Development Financing Authority (MSBDFA) by raising the guarantee a surety may receive up to the lesser of 90% or $3M of its loss under a bid bond, payment bond, or performance bond on a contract. SB 388 also gives the Program the authority to issue bonds to contractors up to $5M from it’s previous limit of $2.5M. SB 388 passed both legislatures and awaits the governor’s signature.

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) 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 approved by the legislature and signed by the governor on April 14.

SC S.831 (SCDOT)  Omnibus transportation bill aims to modernize the South Carolina Department of Transportation (SCDOT) through sweeping administrative, financial, and operational reforms which includes authorizing new forms of public-private partnerships (p3s) for highway and transit projects. All bids for contracts in excess of $100,000 must be accompanied by certified bid bonds, and all work awarded under the contracts must be covered by performance and payment bonds for one hundred percent of the contract value. S.831 has passed both chambers, though differences remain under negotiation through a conference committee. 

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. On March 26, H.944 passed the House 84-46 and is currently before the Senate Transportation Committee. NASBP sent a letter to the House and Senate Transportation Committees in opposition to the bill. H.944 passed the House 84-46 and the Senate Committee on Transportation. The bill is now before the Senate Appropriations Committee. The Vermont legislature’s session ends on May 8.

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.

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.