Merchants Fights for Surety Industry on Capitol Hill

March 4, 2026

Standing with Contractors

Contractors build the infrastructure communities depend on. They keep America running by delivering roads, bridges, water systems, and more, all while taking on risk. 

As contractors step up to do the job, Merchants Bonding Company™ stands with them, advocating at the federal level for a strong surety system and policies that protect public projects. 

Merchants Fighting for Stronger Protections 

Merchants leaders Shana Rothman and Steve Dorenkamp met with members of Congress in Washington, D.C. to advocate for surety backing on water infrastructure to protect taxpayers. 

The Water Infrastructure Subcontractor and Taxpayer Protection Act (S.570 / H.R.1285) is bipartisan legislation that would require bonding on all WIFIA-funded P3 projects, aligning water infrastructure with existing transportation infrastructure standards. 

The message: consistent bonding requirements protect contractors, projects, and public investment. 

Protecting the Industry

By requiring payment and performance bonds on all federally funded WIFIA P3 projects, the legislation would: 

  • Promote accountability and financial strength 
  • Protect subcontractors and suppliers from nonpayment 
  • Reduce costly project defaults 
  • Safeguard taxpayer dollars
  • Support contractors who operate responsibly

Inconsistent Bonding Leaves Gaps

Depending on how a public-private partnership (P3) project is funded, surety bonds may not be a requirement. 

That inconsistency creates exposure for contractors and the industry as a whole. 

Unbonded projects default 2.5-10 times more often than bonded projects. When default occurs, completion costs rise by 85%. Those failures impact subcontractors, suppliers, taxpayers, and the reputation of the construction industry. 

Contractors deserve a level playing field where proven protections are consistently applied. 

In the Fight Together

Merchants remains committed to advocating for policies that strengthen the surety industry and protect the contractors who build our communities. 

Responsible contractors deserve consistent standards and reliable protections. And we'll continue to stand alongside them: in underwriting, in partnership, and on Capitol Hill, fighting for the safeguards that help them succeed.