Trump and the Electric School Bus Initiative
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Throughout President Donald Trump's administration, one consistent theme has been change. This observation was evident during his first term and continues to be relevant in his second term.
A notable example is the Environmental Protection Agency's (EPA) $5 billion Clean School Bus initiative. Initiated by President Joe Biden's administration, this program is designed to reduce pollution that adversely affects both climate and public health. As of this year, the EPA had already allocated approximately $2.7 billion in grants and had closed applications for a fourth round of funding in early January.
However, in late January, the Trump administration implemented an unprecedented freeze on government spending that affected the Clean School Bus grants. While other EPA funds were quickly released, these particular funds remained inaccessible. I have been monitoring the developments surrounding this funding, noting how the narrative has evolved, yet the uncertainty surrounding the electric school bus sector has persisted.
This ambiguity compelled school districts to make difficult choices early in the year. For instance, the Plum Borough School District in Pittsburgh opted to abandon its plans for electric buses by mid-February, as reported by Superintendent Rick Walsh.
The Little Rock School District, which had secured a $9.8 million Clean School Bus grant to purchase 25 electric buses in 2023, was preparing to upgrade its bus yard for electric vehicles in early February when the EPA grant was frozen. "We did not have the funds to purchase these buses," stated Linda Young, the district's director of grants. Fortunately, the EPA released the funds on February 19, allowing the district to move forward with construction. The buses, intended for transporting special-needs students, are expected to arrive by the end of April and begin operation in the fall.
In the meantime, First Student Inc., a contractor responsible for managing the remaining operations in Little Rock, continues to monitor the situation closely.
In the meantime, First Student Inc., the contractor responsible for managing the majority of Little Rock's school transportation, received an EPA award for 25 electric school buses; however, the funds are still not accessible, as noted by Young. This is not the only award that First Student has seen delayed. According to publicly available data from the EPA, the largest school bus contractor in the nation has accumulated $216 million in awards for over 700 electric buses that have yet to be delivered.
When I contacted First Student in March, they chose not to provide any comments regarding their funding situation. I followed up a few weeks later and again on Monday. This time, they had positive news: the EPA had initiated the process of releasing funds for some of its awards as of last Friday. "We are monitoring our account related to the program for any deposits," stated Kevin Matthews, First Student's head of electrification. (As of this morning, no funds had been deposited.)
The EPA subsequently confirmed the approval of nearly $90 million in pending requests intended for school districts across 22 states, as recently as the end of last week.
However, could the situation change again in the coming weeks? With the Trump administration altering its stance on various issues, including agency layoffs and tariffs, there is no assurance that the current circumstances will remain stable.