The US Environmental Protection Agency announced the latest round of funding from the Clean School Bus Rebate Program with up to $965 million available to school districts.

This fourth round of funding will build on the previous nearly $3 billion in investments being distributed nationwide to further improve air quality in and around schools.

Under the Clean School Bus Program’s multiple grant and rebate funding opportunities to date, EPA has awarded almost $3 billion to fund approximately 8,700 school bus replacements, approximately 95% of which are zero-emission, battery-electric. Funding has been awarded to nearly 1,300 school districts in nearly all 50 states and Washington DC, along with several federally recognized Tribes and US territories, many of which are identified as priority areas serving low-income, rural, and, or Tribal students.

Applications for this year’s Clean School Bus Rebate Program are due on the EPA online portal by 4 pm EST on 9 January 2025. Applicants can request up to $325,000 per bus for up to 50 buses per application, an increase in the total buses per project in response to stakeholder feedback for larger projects to help achieve faster fleet turnover. Funds can be used to cover bus and infrastructure costs for awardees requesting electric school buses, as well as eligible training costs for bus drivers, electricians, and others working with the new buses or infrastructure.

Selectees may also be eligible for Inflation Reduction Act tax credits applicable to their bus and infrastructure purchases. For example, the clean vehicle tax credits for qualifying school buses are worth up to $40,000. Narrowing the cost difference between clean school buses and diesel school buses remains an integral goal of the EPA Clean School Bus Program. The agency adjusted electric school bus funding levels in this rebate program to help stretch funding further and drive down long-term electric school bus costs.

EPA will prioritize applications that replace buses serving low-income, rural, and Tribal students. Large school districts with communities of concentrated poverty may also submit documentation to be prioritized if their application focuses on clean school buses serving those communities.

EPA is working closely with the Joint Office of Energy and Transportation (JOET) of the US Department of Energy and US Department of Transportation to provide school districts with support as they plan for and implement adding electric school buses to their fleets. Clean School Bus Program applicants and selectees can receive free technical assistance from JOET through resources such as one-on-one meetings and public webinars. The EPA and JOET are also able to connect school districts with local utility providers to assist them in the infrastructure planning necessary for projects including battery-electric school buses.