SFAA & NASBP Commend House of Representatives for Amendment to Miller Act Bond Threshold at $150,000
September 28, 2021
The Surety & Fidelity Association of America (SFAA) and the National Association of Surety Bond Producers (NASBP) recently commended members of the House of Representatives for passing H.R. 4350, the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2022. Each year, Congress authorizes appropriations for military activities of the Department of Defense (DoD), for such expenditures as procurement of military construction and for defense activities of the Department of Energy. For FY 2022, the House appropriated approximately $740 billion in DoD spending.
During the floor consideration of H.R. 4350, the House of Representatives accepted an amendment offered by Rep. Nydia Velazquez (D-NY) and Rep. Byron Donalds (R-FL) to exempt the Miller Act from threshold increases based upon inflation as required by 41 USC §1908. Arbitrarily increasing the Miller Act bond threshold based on inflation exposes businesses, including smaller and disadvantaged businesses working as subcontractors and suppliers, to loss of vital payment protections on federal construction projects. Maintaining the bond threshold protects U.S. taxpayers by ensuring tax dollars are not being placed in jeopardy by the absence of performance bonds due to a rote inflationary adjustment.
“We commend the House for recognizing the essential role surety bonds play in the success of federal infrastructure projects,” said Lee Covington, SFAA president and CEO. “This bipartisan amendment maintains the Miller Act bond threshold at its current level, ensuring essential protections for subcontractors and suppliers continue to be required on all federal construction projects over $150,000,” continued Covington.
To learn more about the join support from SFAA and NASBP, visit their websites below.
The Surety & Fidelity Association of America (SFAA)
National Association of Surety Bond Producers (NASBP)