NASBP Focal Point – September 3, 2025

Federal Report

Federal: Congress returns this week from its August recess where it will need to address a number of pressing priority matters. First and foremost, Congress will need to fund the federal government prior to the Sept. 30 funding deadline. Republicans have yet to settle on a strategy to keep the government open, with the party split over a short-term or full-year stopgap spending bill. Democrats, on the other hand, are also divided over which course of action to take. Some in the party are poised to take a stand against the White House over its move to cancel billions in federal grants, while others in the party are concerned of voter backlash should the voters hold the party responsible for a government shutdown.

FAR Deviations: Under the President’s Executive Order Executive Order 14275 and OMB Memorandum M-25-26, Restoring Common Sense to Federal Procurement, the Federal government is undertaking the first-ever comprehensive overhaul of the Federal Acquisition Regulation (FAR). The initiative is led by the Office of Federal Procurement Policy (OFPP) and the Federal Acquisition Regulatory Council (FAR Council), which is designed to return the FAR to its statutory roots, rewritten in plain language, and remove most non-statutory rules. On August 28, the FAR Council released new model deviation text as part of the ongoing Revolutionary FAR Overhaul (RFO) for Part 28 – Bonds and Insurance, The FAR Council determined, “All content in FAR Part 28, Bonds and Insurance, has been retained with minimal deletions and minor updates made for plain language.” Additionally, “No changes were made to provisions or clauses.” The FAR Council refrained from significant regulatory changes to Part 28, and did not make statutory changes to the Miller Act such as adjustments to performance and payment bond thresholds.

The 2026 Fly-in room block is now open, but rooms are limited so don’t delay. Once again, there will be no registration fee to attend, making it the perfect opportunity to join your NASBP colleagues in an effort to ensure federal policymakers understand the significant role bonds play to protect taxpayer funds and advance public works infrastructure projects. The Fly-in will kick off on Tuesday, February 24, with an afternoon “Washington Program” and a welcome reception at the host hotel, the Hilton Washington DC Capitol Hill. Wednesday, Feb. 25, will be dedicated to Capitol Hill appointments. NASBP will provide more details about registration, hotel and Capitol Hill appointments in the coming months. Full registration will open sometime later this Fall, but for now please take this opportunity to reserve your room for the event.

State Activity

NASBP will continue to monitor state activity throughout the remainder of the year. As we go to press, there are currently 11 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.

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.