To amend the Water Infrastructure Finance and Innovation Act of 2014 to establish payment and performance security requirements for projects, and for other purposes.

“(i) Financing security features—The Secretary”

“(ii) Construction payment and performance security

“(I) In general—The Secretary or the Administrator, as applicable, shall ensure that the construction of a project carried out with assistance under this subtitle shall have payment and performance security.

“(II) Use of State or local requirements—With respect to the construction of a project for which payment and performance security is required to be furnished by applicable State or local law, the Secretary or the Administrator, as applicable, shall accept such payment and performance security requirements for purposes of subclause (I), except that the amount of any payment and performance security accepted shall not be less than 50 percent of the total construction contract amount.

“(III) Use of other requirements—With respect to the construction of a project for which no State or local payment and performance security requirements are applicable, the payment and performance security described in paragraphs (1) and (2) of section 3131(b) of title 40, United States Code, shall be required for purposes of subclause (I).”