Bus Rolling Stock Modernization Act of 2025

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 obtaining preapproval or requiring the vehicle manufacturer to provide a performance bond (or other form of security). 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.

Summary by the Congressional Research Service.