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This bill would change how transit agencies can pay for new buses with federal transit money. It would let a transit agency make an advance payment to a bus manufacturer without first getting special approval or requiring the manufacturer to provide a performance bond or other security. The bill also sets clear limits: the agency must already have a signed purchase order and a final contract that allows advance payments, must have the proper authority to buy the buses, and must meet certain existing federal requirements. Most importantly, the advance payment cannot be more than 20% of the total purchase price.
- Allows advance payments for bus purchases using federal transit assistance.
- Removes the need for pre-approval, a performance bond, or similar security from the bus maker.
- Requires a signed purchase order, an executed contract with advance-payment terms, and proper buying authority before payment is made.
- Caps any advance payment at 20% of the total contract value.
Official Summaries
Bus Rolling Stock Modernization Act of 2025
This bill allows a state or local authority (e.g., a transit authority) to use public transportation grants to make a partial advance payment for bus rolling stock (e.g., transit buses).
Specifically, a public transportation grant recipient may use grant funds to make an advance payment of not more than 20% of the total purchase order value of a bus rolling stock vehicle without obtaining preapproval or requiring the vehicle manufacturer to provide a performance bond (or other form of security). In order to make an advance payment, the recipient must meet certain requirements. For example, the recipient must have a signed purchase order and an executed contract with a vehicle manufacturer that includes advance payment provisions.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 660 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 660
To establish limitations on advanced payments for bus rolling stock,
and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 20, 2025
Ms. Smith (for herself, Mr. Cramer, Mr. Fetterman, and Mrs. Britt)
introduced the following bill; which was read twice and referred to the
Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To establish limitations on advanced payments for bus rolling stock,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Bus Rolling Stock Modernization Act
of 2025''.
SEC. 2. LIMITATIONS ON ADVANCED PAYMENTS FOR BUS ROLLING STOCK.
Section 5323 of title 49, United States Code, is amended by adding
at the end the following:
``(w) Limitations on Advanced Payments for Bus Rolling Stock.--
``(1) In general.--Notwithstanding any provision of this
chapter or part 200 of title 2, Code of Federal Regulations, or
any successor regulation, a recipient may use assistance made
available under this chapter to make an advance payment on a
bus rolling stock vehicle without the recipient obtaining pre-
approval or requiring a performance bond or other form of
security from the transit vehicle manufacturer.
``(2) Limitations.-- A recipient making an advance payment
under paragraph (1)--
``(A) shall have--
``(i) a signed purchase order and executed
contract with a transit vehicle manufacturer
that includes advance payment provisions;
``(ii) preaward authority; and
``(iii) met the requirements under
subsection (m) and section 5318(e) of this
title; and
``(B) shall not provide an advanced payment that is
more than 20 percent of the total purchase order
value.''.
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