Will the Funding of Electric School Buses Now Fall on State's Shoulders?

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For the last several years, the US government had robust programs in place to assist school districts who were upgrading to electric buses, or other eco-friendly fuel options. The spearhead for this was the EPA's Clean School Bus Program, which was approved via a bipartisan bill to provide $5 Billion in clean bus rebates between 2022-2026.

However, recent cuts from the Trump Administration have caused concern that the program may be in danger, along with other clean-energy initiatives.

Will it now be down to states and local districts to pay for these upgrades? This is how things stand as of writing in May 2025.

 

Is The EPA Clean School Bus Program Dead?

The Clean School Bus Program began with the bipartisan Infrastructure Investment and Jobs Act, passed in 2021 and signed by then-President Biden. The bill included numerous provisions to improve the country's infrastructure and encourage investment in green technology, including roughly $5 billion which would help schools pay for greener school buses.

In theory, the bill is supposed to remain in force until 2026.

However, the Trump Administration has been making sweeping cuts to both educational and environmental services, as well as freezes on government spending. As a result, multiple outlets are now reporting that many districts have not received funding they applied for in 2024. In these cases, the buses have already been purchased, and the schools are already paying for them - but without hundreds of thousands, or even millions, of dollars which they were promised to help with the payments. The EPA has also not made any announcements about who won the grants for 2025, or about when applications for 2026 grants will be open.

While the program has not been officially shut down or repealed, its future now seems to be in jeopardy. The tendency of the Trump Administration to make cuts without going through proper channels, or even announcing exactly what has been cut, is only adding to the uncertainty.

Be Cautious About Electric Bus Investments

We've long been bullish on electric buses here at BusBoss, but given the current situation, this probably isn't the best time to buy new EV buses. Not unless your district is in a position to pay for them unaided, or else you're in one of the few states like California that offer their own green rebate programs.

If you need help reducing costs in other areas of your transportation offices, contact BusBoss for suggestions or affordable software upgrades!

Contact us to request a free demo to be eligible for our 2025 Kickoff Promotion.

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Sonia Mastros

Sonia Mastros

PRESIDENT

 Sonia has been involved with BusBoss since the late 1990’s, and has personally overseen many projects for various customers ranging from large urban and suburban districts to smaller rural school districts from all over the country. In all cases, her primary goal was to improve their transportation operations by reducing their operating expenses while simultaneously improving student safety and parent satisfaction.