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

Sponsor: Michelle Fischbach (Republican-MN)May 23, 2025

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

Referred to the Subcommittee on Highways and Transit.

Lets transit agencies pay upfront for new buses without extra paperwork for manufacturers.

This bill would make it easier for local transit agencies to buy new buses. It would let them make advance payments to bus manufacturers using federal money without requiring the manufacturer to get a performance bond. However, agencies would need to follow specific rules, including a cap on how much they can pay upfront.

What Would Change

Today, federal rules often require bus manufacturers to get a performance bond when transit agencies make advance payments for buses using federal money. This bill would change that, allowing transit agencies to make advance payments without requiring the manufacturer to get a bond, as long as the agency meets specific conditions and the payment is not more than 20 percent of the total cost.

Key Provisions

Lets transit agencies make advance payments for buses using federal money without requiring a manufacturer's performance bond.
Requires transit agencies to have a signed contract with a bus manufacturer that includes advance payment terms.
Requires transit agencies to have pre-approval before making these advance payments.
Caps advance payments at 20 percent of the total purchase order value for the buses.

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HR 3586 · 119th Congress · May 23, 2025 · AI Summary by gemini-2.5-flash · 10/10

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

What Would Change

Key Provisions

Lobbying Activity