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WASHINGTON – The American bus manufacturing industry has been facing a crisis in recent years, with several prominent manufacturers succumbing to bankruptcy. Unfortunately, decades-old payment practices used by the Federal Transit Administration (FTA) have contributed to today’s challenging business environment and are unnecessarily raising costs for bus manufacturers and their customers. Amendments to the FTA are referred to the Senate Banking, Housing, and Urban Development Committee, which has jurisdiction.

U.S. Senators Kevin Cramer (R-ND) joined fellow Senate Banking Committee members Tina Smith (D-MN), Katie Britt (R-AL), and John Fetterman (D-PA) in introducing the Bus Rolling Stock Modernization Act. The legislation cuts bureaucratic red tape, allowing transit agencies to make advance payments of up to 20% for bus rolling stock purchased using federal funds. This simple reform would provide much-needed flexibility and cost savings for local transit agencies and manufacturers. These savings will help free up much-needed capital for bus manufacturers, allowing for more significant investments in their operations to help meet customer demand.

“This legislation represents a bipartisan effort to revitalize the bus manufacturing industry across America,” said Senator Cramer. “This simple change will have the dual benefit of much-needed flexibility for local transit agencies and contracting stability for manufacturers like Motor Coach Industries in Pembina North Dakota. This helps pave the way for further investment and job creation at the facility.”

“Each day, transit systems connect Minnesotans to their jobs, schools, grocery stores and countless other opportunities – all while reducing traffic congestion and pollution,” said Senator Smith. “This bill makes a straightforward and commonsense update to the current FTA regulations that would cut unnecessary red tape and strengthen the domestic bus manufacturing market. This small change will also support U.S. bus manufacturing jobs, get more buses into service, and help Americans get to their jobs, school, and health care appointments more easily.”

“Senator Cramer’s introduction of this legislation will be a direct benefit to Motorcoach Industries (MCI) manufacturing facilities located in Pembina, North Dakota,” said Paul Soubry, Chief Executive Officer of NFI Group, MCI’s parent company. “The management and employees of MCI and New Flyer express our gratitude for the Senator’s efforts to promote the growth and expanded employment of the motor coach industry in North Dakota.”

Currently, FTA regulations allows for advance payment only when the manufacturer obtains a performance bond or letter of credit, and the grantee receives pre-approval from FTA. The existing process is cumbersome, time consuming, and costly for both buyers and manufacturers.

The Bus Rolling Stock Modernization Act would simplify the purchasing process and help drive down costs for agencies and manufacturers.

Click here for bill text.