Transit industry leaders are urging reforms to bus procurement practices, arguing that reducing unnecessary customization and modernizing purchasing processes could help agencies stretch limited funding and improve service reliability.

During a Brookings Institution event, in partnership with CALSTART, former Maryland Transportation Secretary Paul Wiedefeld, U.S. Rep. Maxwell Frost (D-FL), and representatives from Eno Center for Transportation, the American Public Transportation Association (APTA), Maryland Transit Administration (MTA), and the Center for Transportation and the Environment discussed the factors driving higher bus costs.

Speakers said that extensive bus customization, declining competition among manufacturers, and inconsistent procurement practices have increased vehicle prices and delivery times. Frost highlighted bipartisan legislation directing the Government Accountability Office to study rising bus procurement costs and identify opportunities for reform.

U.S. Rep. Maxwell Frost (right) highlighted bipartisan legislation directing the Government Accountability Office to study rising bus procurement costs and identify opportunities for reform.

Panelists also stressed that stable, predictable funding would allow transit agencies to plan larger, multi-year bus purchases that can lower costs and improve fleet replacement schedules.

MTA Administrator Holly Arnold said her agency has reduced unnecessary bus customization, saving about $17,000 per vehicle while maintaining operational needs. Those savings can be redirected toward additional buses and system improvements.

According to Eno, the event also comes during the current reauthorization cycle for surface transportation. The current bill passed through the House’s Transportation and Infrastructure Committee includes provisions to lower bus costs.

Rather than eliminating customization entirely, panelists advocated for greater use of standardized specifications, shared procurement contracts, and stronger collaboration among transit agencies, manufacturers, and federal policymakers.

"We're doing this so riders can get from point A to point B," Arnold said, noting that more affordable buses ultimately mean more reliable and frequent transit service.