To establish limitations on advanced payments for bus rolling stock, and for other purposes.
Sponsored By: Representative Fischbach, Michelle [R-MN-7]
In Committee
Summary
Would allow up to 20 percent advance payments for bus rolling stock without requiring a performance bond. The bill would create a narrow exception so transit grant recipients can make limited upfront payments to manufacturers when certain contract and preaward conditions are met.
Show full summary
- Transit agencies and other recipients would be able to pay up to 20 percent of a bus purchase in advance if they have a signed purchase order, an executed contract with advance-payment terms, preaward authority, and meet specified statutory requirements.
- Bus manufacturers would be eligible to receive partial payment sooner, which could improve cash flow and help speed production and delivery timelines.
- Federal program rules would be adjusted for this limited use by waiving the usual performance bond or similar financial arrangement while still requiring compliance with other procurement and preaward safeguards.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Advance payments for transit bus orders
If enacted, transit grant recipients could pay up to 20% of a bus order upfront. The bus maker would not need a performance bond for that advance. This would only apply to bus rolling stock. Recipients would need a signed purchase order, a contract that allows advance payments, and preaward authority. They would also need to meet subsection (m) and 49 U.S.C. 5318(e) requirements.
Sponsors & CoSponsors
Sponsor
Fischbach, Michelle [R-MN-7]
MN • R
Cosponsors
Stauber
MN • R
Sponsored 5/23/2025
Craig
MN • D
Sponsored 5/23/2025
Rep. Rogers, Mike D. [R-AL-3]
AL • R
Sponsored 7/21/2025
Roll Call Votes
No roll call votes available for this bill.
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