State Funding Programs
States have provided nearly one-third of total U.S. electric school bus funding and play a critical role in advancing momentum towards electrification.
At least 11 states have created programs explicitly meant to support electric school buses and/or their charging infrastructure:
Another two states passed legislation establishing programs to support electric school buses, but without securing funding: Virginia and Nevada. Those programs have not been launched.
Sources of Funding
The majority of electric school bus programs have relied on general funds from state budgets, such as in Michigan, Minnesota, and Colorado. In addition to using state budgets, California and Washington have tapped into their respective cap-and-invest programs, while New York, New Jersey, and Massachusetts have used Regional Greenhouse Gas Initiative (RGGI) funds. New York also set up its biggest electric school bus program using funding from public bonds, while Connecticut used state bonds to provide matching funds to federal funding applicants.
Funding Availability
Most existing funding programs are time-bound, not permanent, and limited by one-time appropriations. Some programs are still open, while others have closed permanently.
For a comprehensive list of all funding opportunities available today for electric school buses — including those not designed explicitly for electric school buses but for which they are eligible — check out the World Resources Institute Electric School Bus Initiative’s Funding and Financing Clearinghouse or the Department of Energy’s Alternative Fuel Data Center Incentive Finder. CALSTART also sends out a monthly newsletter listing state and utility funding opportunities.
Key State Policies
STATE | PROGRAM NAME | YEAR EST. | ADMINISTERING AGENCY | CATALYZED BY | FUNDING SOURCE | FUNDING AMOUNT | FUNDING TYPE | SELECTION | PRIORITIZATION | ELIGIBLE USES OF FUNDING |
|---|---|---|---|---|---|---|---|---|---|---|
CA | 2024 | Air Resources Board (CARB) | State Budget | $375 million | Grants | First Come, First Served | small and rural school districts in first tier; school districts serving disadvantaged or low-income communities in second tier | Bus, Other | ||
CA | 2024 | Energy Commission (CEC) | State Budget | $125 million | Grants | First Come, First Served | small and rural school districts in first tier; school districts serving disadvantaged or low-income communities in second tier | Charger, Installation, Technical Assistance, Fleet Planning, Workforce Training, Other | ||
CA | Heavy-Vehicle Incentive Program (HVIP) Public School Bus Set-Aside | 2022 | Air Resources Board (CARB) | State Agency | Cap-and-Trade Program (California Climate Investments); State Budget | $122 million in FY21-22 $135 million in FY22-23 | Vouchers | First Come, First Served | small and medium-sized school districts | Bus |
CA | 2022 | Energy Commission (CEC) | State Agency | Cap-and-Trade Program (California Climate Investments) | $15 million | Reimbursement | Only for HVIP Public School Bus-Set Aside Applicants | small and medium-sized school districts | Charger, Installation, Charge Management Software | |
CO | 2022 | Dept of Public Health & Environment | State Budget | $65 million | Grants | Competitive | school districts in impacted communities, nonattainment areas, receiving free or reduced lunch | Bus, Charger, Training, Other | ||
CT | 2024 | Dept of Energy & Environmental Protection (DEEP) | Bond Funding | $20 million | Reimbursement | Competitive | School districts in Connecticut Distressed Municipalities and Federal Low-Income and Disadvantaged Communities | Bus, Charger, Other | ||
MA | Dept of Energy Resources | State Agency | Cap-and-Trade Program (RGGI) | $2 million | Grants | Competitive | none | Bus, Charger | ||
MA | 2022 | Clean Energy Center (MassCEC) | State Agency | State Budget | $33 million | Grants | Competitive | school districts on the EPA CHDV Disadvantaged Community County List and those who have not received previous MassCEC awards | Bus, Charger | |
MD | 2023 | Dept of Environment | State Budget | $3 million | Grants | Competitive | none | Bus | ||
MD | 2024 | Energy Administration | Governor | State Budget | $17 million | Grants | Competitive | overburdened and underserved communities; Tile I schools | Bus, Charger, Technical Assistance, Training, ADA Buses | |
MI | 2023 | Dept of Education; Dept of Environment, Great Lakes & Energy (EGLE); MI Assoc of Pupil Transportation | State Budget | $125 million | Grants | First Come, First Served | high-need districts, based on income, environmental risk factors, and rural or Indigenous populations | Bus, Charger, Installation | ||
MN | 2023 | Dept of Commerce – Energy & Utilities | State Budget; polluter pays account (Renewable Development Fund) | $13 million | Grants | Competitive | low-income, rural and Tribal schools | Bus, Charger, Purchase Administration; Planning and Technical Assistance | ||
NJ | 2022 | Dept of Environmental Protection | State Budget, Societal Benefits Charge, Cap-and-Trade Program (RGGI) | $45 million | Grants | Competitive | overburdened communities, measured by income, minorities, Tribal communities or English proficiency | Bus, Charger | ||
NM | 2025 | Public School Facilities Authority | State Budget | $60 million | Grants | First Come, First Served | none | Bus, Charger | ||
NY | 2022 | New York State Energy Research and Development Authority | Public Bonds (NY Environmental Bond Act) | $500 million | Vouchers | First Come, First Served | Priority Districts include SED-designated High Need/ Resource Capacity districts and districts that serve Disadvantaged Communities | Bus, Charger, Installation | ||
WA | 2023 | Dept of Ecology | Cap-and-Invest Program (WA Climate Commitment Act), State Budget, Volkswagen Settlement Settlement | $34 million | Grants | Competitive | overburdened, rural and low-income communities; school districts with older buses and Tribal lands | Bus, Charger, Installation |
California has also established other school bus programs, including the Rural School Bus Pilot Project, the School Bus Replacement Program, and Heavy-Vehicle Incentive Program (HVIP) (Standard). However, these programs were not specifically created to fund electric school buses. Similarly, Texas has a Clean School Bus Program that has run since 2007 but was created to fund a variety of alternative fuel buses.
Resources
- Alliance for Electric School Buses – State Policy Playbook
- World Resources Institute – Clearinghouse: Electric School Bus Funding and Financing Opportunities
- CALSTART – Electric School Bus Network
- Alternative Fuels Data Center – Federal and State Laws and Incentives
