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

This bill amends section 5323 of title 49, United States Code, to allow recipients of federal assistance, such as transit agencies, to make advance payments for bus rolling stock vehicles. This provision specifically waives the requirement for the transit vehicle manufacturer to obtain a performance bond or similar financial arrangement for such advance payments. However, strict limitations are imposed on these advance payments. A recipient must have a signed purchase order and an executed contract with the manufacturer that includes advance payment provisions, possess preaward authority, and meet existing requirements under subsection (m) and section 5318(e) of the title. Furthermore, any advance payment made under this authority cannot exceed 20 percent of the total purchase order value for the bus rolling stock.