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

# HR 3586 Summary **What the Bill Does** HR 3586 would allow state and local public transportation agencies to use federal grants to make partial advance payments toward bus purchases. Specifically, transit authorities could pay up to 20% of a bus order upfront without requiring the bus manufacturer to provide a financial guarantee (called a performance bond). Currently, federal rules make such advance payments more difficult. To qualify for this flexibility, agencies would need to have a signed purchase order and an executed contract with a manufacturer that includes advance payment terms. **Who It Affects** This bill primarily affects public transit agencies and bus manufacturers.

Transit systems that receive federal grants—which serve millions of commuters nationwide—could benefit from faster bus procurement. Bus manufacturers might also benefit by receiving partial payment earlier in the production process. Indirectly, it could affect taxpayers and transit riders if it speeds up bus fleet purchases or affects costs. **Current Status** The bill was introduced by Representative Michelle Fischbach (R-Minnesota) in the 119th Congress and is currently in committee, meaning it hasn't yet been debated or voted on by the full House. No action has been taken to advance it further at this time.