SFAA Commends Congress for Maintaining Current Bonding Protection Levels in National Defense Authorization Act (NDAA)

December 15, 2021 (WASHINGTON, DC) The Surety & Fidelity Association of America (SFAA), a nonprofit, nonpartisan trade association representing all segments of the surety and fidelity industry, commends the U.S. Senate and House for passing the National Defense Authorization Act (NDAA) for Fiscal Year 2022, and including Section 877, which exempts the Miller Act from periodic indexing for inflation. SFAA would like to thank Miller Act exemption bill sponsors, Representatives Nydia Velazquez (D-NY) and Byron Donalds (R-FL), as well as Senators Robert Portman (R-OH), Gary Peters (D-MI) and Mazie Hirono (D-HI), for their leadership and commitment on the passage of this bill.

Exempting the Miller Act from periodic indexing for inflation ensures essential payment protections remain in place for subcontractors, suppliers, and workers on all federal construction contracts subject to the Miller Act. The exemption also ensures performance protections for taxpayers will remain in place on federal construction contracts of $150,000 and more.

“Bonding federal infrastructure protects taxpayers’ dollars, ensures project completion, protects local small businesses and workers, and promotes economic growth,” said Lee Covington, president and CEO of the SFAA. “The Miller Act provides essential remedial protections for many small businesses which furnish labor and materials on public work. This legislation ensures thousands of federal projects will continue to be protected by payment and performance bonds, protecting downstream parties from the significant risk of nonpayment if the contractor fails to pay them or goes out of business,” continued Covington.

By exempting the Miller Act from periodic inflation adjustments, the federal bond threshold will remain at $150,000. If the federal bond threshold were increased to $200,000, more than 1,700 unbonded federal construction projects annually would go unprotected, exposing taxpayers to more than $300M in potential losses.

For over 80 years, the federal Miller Act has protected taxpayers against risk of loss by requiring payment and performance bonds on federal construction contracts. President Biden is expected to sign the NDAA into law in the coming days.


SFAA Contact: Peter Roth, Vice President – Strategic Communications, Marketing & Research                       

Phone: (703) 401-0676

E-mail: proth@surety.org




The Surety & Fidelity Association of America (SFAA) is a nonprofit, nonpartisan trade association representing all segments of the surety and fidelity industry. Based in Washington, D.C., SFAA works to promote the value of surety and fidelity bonding by proactively advocating on behalf of its members and stakeholders. The association’s more than 450 members significantly strengthen the vital protections of federal taxpayers through surety and fidelity bonding in both the public and private sectors. With these vital protections in place, businesses are able to grow and flourish, critical infrastructure developments are successfully carried through to completion, and companies are protected from wrongful acts of their employees – all of which positively support the nation’s economy. For more information visit www.surety.org.