Bus Rolling Stock Modernization Act of 2025
Bus Rolling Stock Modernization Act of 2025
Plain Language Summary
# Bus Rolling Stock Modernization Act of 2025 – Plain Language Summary **What the Bill Would Do:** This bill would allow public transportation authorities (like city bus systems) to use federal public transportation grants to pay up to 20% of a bus purchase upfront, without needing special government approval or requiring the bus manufacturer to post a financial guarantee. Currently, these advance payments typically require extra paperwork and approvals. The bill would streamline this process for transit agencies that have already signed contracts with bus manufacturers. **Who It Affects:** The bill primarily affects state and local transit authorities that operate bus systems and receive federal transportation funding.
It could also benefit bus manufacturers by allowing them to receive partial payments earlier in the purchasing process. Riders and taxpayers would be indirect beneficiaries if the streamlined process helps transit systems modernize their fleets more quickly or cost-effectively. **Current Status:** The bill (S. 660) was introduced by Senator Tina Smith (D-Minnesota) in the 119th Congress and is currently in committee, meaning it has not yet been debated or voted on by the full Senate.
CRS Official Summary
Bus Rolling Stock Modernization Act of 2025This 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.
Latest Action
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.