Bus Rolling Stock Modernization Act of 2025
The Bus Rolling Stock Modernization Act of 2025 would add a new rule to how public transit agencies may pay for new bus rolling stock. It allows recipients of federal transit assistance to make an advance payment toward a bus purchase without needing pre-approval or a performance bond from the manufacturer, but only if certain safeguards are met. Specifically, an advance payment cannot exceed 20% of the total purchase order value, and the recipient must have a signed contract with the manufacturer that includes advance-payment provisions, plus preaward authority and compliance with existing procurement requirements. The new rule would override other regulations only to the extent of enabling these advance payments under the specified conditions.
Key Points
- 1Purpose and scope: Creates a limited, regulatory carve-out allowing advance payments for bus rolling stock to speed or simplify procurement while maintaining safeguards.
- 2No-bond provision: Recipients may make an advance payment without requiring a performance bond or other security from the vehicle manufacturer.
- 3Cap on advance payments: Any advance payment is restricted to no more than 20% of the total purchase order value.
- 4Conditions for the recipient: Must have a signed purchase order and contract with advance-payment terms, preaward authority, and must meet existing requirements under subsection (m) and section 5318(e) of title 49.
- 5Federal rule interaction: The new subsection is added to 49 U.S.C. 5323 and can override conflicting provisions in this chapter or related CFR rules for the specific advance-payment authorization described.