S. 570 — Water Infrastructure Subcontractor and Taxpayer Protection Act of 2025

This section revises the security features requirement for Water Infrastructure Finance and Innovation Act (WIFIA) projects—previously limited to financing security features such as a rate covenant—by designating that text as subclause (i) and adding subclause (ii) to require construction payment and performance security. Under the new requirement, the Secretary or Administrator must ensure such security for project construction, which is satisfied if applicable state or local law requires it at not less than 50% of the total construction contract amount or, otherwise, by meeting the performance and payment bond requirements of 40 U.S.C. 3131(b)(1) and (2). (Thus, this protects the federal credit instrument against contractor non-performance or subcontractor non-payment during construction.)