Bus Rolling Stock Modernization Act of 2025

This bill, called the Bus Rolling Stock Modernization Act of 2025, would let transit agencies use federal transit grants to pay up to 20% of a bus order upfront. For that partial advance, they would not need prior federal approval or a performance bond from the bus maker .

To make an advance payment, the agency must meet certain conditions, like having a signed purchase order and a contract that allows an advance. The advance cannot be more than 20% of the total order value, and other standard grant requirements still apply .

• Who is affected: State and local transit agencies that buy buses with federal transit funds; bus manufacturers receiving partial upfront payments.
• What changes: Allows advance payments up to 20% without federal preapproval or a performance bond, if certain contract steps are in place .
• When: Would take effect if enacted into law (no specific start date noted in the text).