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 requiring the vehicle manufacturer to provide a performance bond (or similar financial arrangement). 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.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3586 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 3586
To establish limitations on advanced payments for bus rolling stock,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 23, 2025
Mrs. Fischbach (for herself, Mr. Stauber, and Ms. Craig) introduced the
following bill; which was referred to the Committee on Transportation
and Infrastructure
_______________________________________________________________________
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. 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 transit vehicle
manufacturer obtaining a performance bond or similar financial
arrangement.
``(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.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Transportation and Infrastructure.
Referred to the Subcommittee on Highways and Transit.
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