This bill would let public transit agencies use federal transit grants to pay up to 20% of a bus order in advance, without making the bus maker post a performance bond. To do this, the agency must have a signed purchase order, a final contract that includes advance payment terms, pre-award authority, and must meet other existing federal requirements named in the bill. The change is added to federal transit law for bus “rolling stock” (like transit buses) .

In everyday terms, this could help transit systems place orders faster and help manufacturers manage costs, while setting a cap and rules to reduce risk to taxpayers .

Key points

• Who is affected: State and local transit agencies; bus manufacturers; riders indirectly.
• What changes: Agencies can make advance payments for buses without requiring a performance bond, up to 20% of the total order, with a signed purchase order, an executed contract, pre-award authority, and other listed compliance steps.
• Scope: Applies to bus rolling stock bought with federal public transportation funds.