U.S. Senators Kevin Cramer, Tina Smith, Katie Britt, and John Fetterman have introduced the Bus Rolling Stock Modernization Act to address challenges faced by bus manufacturers in the United States. The legislation aims to modernize outdated payment practices of the Federal Transit Administration (FTA), which are contributing to financial difficulties for bus manufacturers.
The proposed bill allows transit agencies to make advance payments of up to 20% for buses purchased with federal funds. This change is intended to provide flexibility and cost savings for both local transit agencies and manufacturers, enabling them to invest more significantly in their operations.
Currently, FTA regulations permit advance payments only if a manufacturer secures a performance bond or letter of credit and receives pre-approval from the FTA. This process is considered cumbersome and costly. The new act seeks to simplify this purchasing process.
Senator Cramer stated, “Our legislation cuts unnecessary red tape, allowing bus manufacturers across America to invest in their production capacity.” He highlighted that this change would benefit North Dakota’s local transit agencies and manufacturers like Motor Coach Industries in Pembina.
Senator Smith added that the bill would support U.S. bus manufacturing jobs and improve public transportation systems: “This bill makes a commonsense update…by cutting unnecessary red tape.”
Motor Coach Industries expressed appreciation for the legislative effort: “This bill strengthens the motorcoach industry…We sincerely appreciate the Senator’s leadership in championing policies that drive innovation.”
The amendments are referred to the Senate Banking Committee for further consideration.
