EPA Halts Electric School Bus Spending Amid Concerns
WASHINGTON – The Environmental Protection Agency (EPA) Secretary Lee Zeldin is suspending the remaining $2.3 billion budget for the Biden administration’s electric school bus initiative. This decision follows complaints about breakdowns in cold weather and delays in production, particularly related to a mandate from New York Governor Kathy Hochul.
After $2.7 billion was spent under former President Biden, the program faced criticism for overspending, with an average cost of about $318,452 per bus, according to an agency spokesperson.
In New York City alone, over $61 million in EPA grants funded two organizations to manufacture 180 electric buses for five school districts, costing between $295,000 and $395,000 per bus. It remains unclear how many of these buses are currently operational.
Despite spending over $210 million, only 150 buses are functioning in New York City, as per the New York State Energy Research and Development Authority.
“The Trump EPA has a zero-tolerance policy for the waste and abuse of hard-earned tax dollars,” Zeldin stated.
“We’re reforming the Congressionally mandated Clean School Bus Program to ensure child safety is prioritized and taxpayers receive reliable buses for their investments.”
Biden’s EPA had allocated billions in rebates and grants to 1,152 school districts for the replacement of 8,236 school buses. However, numerous districts are still awaiting these vehicles as of February 2025, with production issues still unresolved.
The agency’s inspector general audited the initial round of rebates and found that $38 million in ineligible applications were confiscated, exposing billions in taxpayer funds to risks like fraud and waste.
Hochul previously enforced legislation mandating the discontinuation of traditional diesel buses by 2027 and a full shift to electric buses by 2035.
Concerns from stakeholders and parents revolve around the heating capabilities of these electric buses during winter, leading to lost routes and significant expenses for the districts. “This remains the top concern among school board members,” Brian Fessler, director of government affairs for the New York State School Boards Association, remarked.
As the 2035 deadline approaches, districts like Fessler’s face increasing financial, operational, and logistical hurdles. A report estimated replacing around 45,000 diesel buses in New York would cost approximately $11.2 billion, potentially requiring districts to invest millions in charging infrastructure and additional staff.
Zeldin highlighted the flawed approach of the previous EPA, where funds were disbursed to manufacturers upfront rather than upon delivery, resulting in many not fulfilling contracts.
New York districts have secured a total of $213 million in rebates and grants across 61 districts to replace 681 buses since 2022. Two years after the announcement, the city’s previous mayor Eric Adams revealed a significant grant of over $61 million for 180 electric buses, also raising questions about actual deployments.
Notably, the New York City School Bus Umbrella Services, linked to the Department of Education, reported a revenue growth from $6 million to over $177.5 million since 2021, with a large portion directed towards payroll and benefits.
How many of these electric buses are actually in use remains uncertain. Requests for comments from involved organizations were not returned.
Some regions, like Lakeshore Central School District, received about 24 electric buses, yet faced complaints from students regarding inadequate heating. Superintendent Phil Johnson acknowledged the issues, affirming the commitment to student comfort and safety.
Johnson also pointed out that there are currently “no immediate plans” to acquire more electric buses, emphasizing the importance of cost-effective solutions to meet future requirements.
The state’s green bus mandate has been criticized even within local law enforcement. “It’s a really poor political move for New York state to enforce this on rural districts,” said Rep. Robert Smullen (R-Fulton), who also pushed back against the potential impact on education funding.
In addition, both Republicans and Democrats played a role in establishing the $5 billion Clean School Bus Program under the Biden administration, as a bipartisan effort in 2021.
An EPA spokesperson noted Zeldin has canceled around $30 billion in unnecessary grants to streamline the Clean School Bus Program, promising updates about future changes.
Requests for comments from the mayor’s office and the city’s Department of Education did not elicit responses.
