To establish limitations on advanced payments for bus rolling stock, and for other purposes.

The bill adds a new provision to 49 U.S.C. 5323 that would allow transit agencies receiving federal assistance to make an advance payment of up to 20% of the total purchase order value for a bus rolling stock vehicle without requiring the transit vehicle manufacturer to obtain a performance bond or similar financial guarantee. This option would be available only if the recipient has a signed purchase order and contract with advance payment provisions, has preaward authority, and satisfies certain requirements under existing law (subsection (m) and section 5318(e)). The purpose appears to be to facilitate bus procurements by reducing upfront bonding requirements, while still imposing conditions intended to safeguard federal funds and ensure proper procurement practices. In short, the bill creates a narrow exception to bond requirements for up to 20% upfront payments on bus rolling stock, contingent on specific contractual and regulatory prerequisites and protections.