Additional $200 Million Available For Zero-Emission School Buses

New York School Bus Incentive Program Makes Clean Buses and Charging Infrastructure More Affordable for Public Schools

July 22, 2025

Governor Kathy Hochul today announced that an additional $200 million is now available for zero-emission school buses through the third installment of funding from the historic $4.2 billion Clean Water, Clean Air, and Green Jobs Environmental Bond Act of 2022. The funding, distributed through the New York School Bus Incentive Program (NYSBIP), supports the purchase of electric buses, charging infrastructure, and fleet electrification planning as public schools transition to zero-emission technologies that improve air quality and reduce pollution in communities. This investment helps ensure that schoolchildren, drivers, and the communities where they live across New York benefit from clean, quiet, and healthy buses.

“New York State is leaning into our Environmental Bond Act commitment to provide public schools with the funding and resources to make electric school buses more affordable,” Governor Hochul said. “We are leaving no school behind as we reduce pollution from vehicles so every student can benefit from clean air while building healthier, more sustainable communities for New Yorkers across the state.”

Administered by the New York State Energy Research and Development Authority (NYSERDA), NYSBIP provides incentives to eligible school bus fleet operators, including school districts and school bus operators, that purchase zero-emission buses. It also offers charging infrastructure vouchers to help support the installation of Level 2 or DC fast chargers and provides funding to develop fleet electrification plans. This support helps ensure safer, more reliable transportation for students while giving schools the tools they need to make smart, cost-effective upgrades.

The funding is available on a first-come, first-served basis with incentive amounts covering up to 100 percent of the incremental cost of a new or repowered electric school bus. This helps offset some or all of the difference in purchase price between zero-emission buses and comparable diesel or gasoline buses. All school bus fleet operators in New York State can also qualify for funding for fleet electrification plans, which provide a customized roadmap for electric bus adoption.

New York State Energy Research and Development Authority President and CEO Doreen M. Harris said, “Today is the latest in a series of support that NYSERDA has offered to help make it easier for fleet operators to plan, navigate incentives for bus purchases and install vehicle charging infrastructure. We are excited to help more adopt zero-emission school buses through this additional Environmental Bond Act funding.”

Program eligibility and rules for charging infrastructure funding are available online through the NYSBIP Implementation Manual. School bus fleet operators do not apply directly for school bus funding. Vehicle dealers apply the funding to the price of buses on their behalf after fleet operators have issued purchase orders. Fleet operators apply directly to NYSERDA for charging vouchers, which support adding charging infrastructure to their depots.

Larger funding amounts are available for high-need school districts  and school districts with significant portions of their population living in disadvantaged communities , as determined by the New York State Climate Justice Working Group criteria. While these districts are defined as priority districts through this program, all school districts can earn increased incentives by removing a gas or diesel bus from operation, purchasing wheelchair accessible buses, or purchasing buses with vehicle to grid capability. All school districts that complete fleet electrification plans also become eligible for higher funding amounts.

New York State Department of Environmental Conservation Commissioner Amanda Lefton said, “The continued rollout of zero-emission school buses is critical to improving air quality and protecting the health of students and drivers in communities across the State. Investments through the Bond Act are making the transition to these greener vehicles more affordable for school districts. Under the leadership of Governor Hochul and in coordination with our state agency partners, DEC remains focused on administering Bond Act funding to support this important program and continue momentum to help address climate impacts, reduce harmful emissions, and improve quality of life for New York families.”

New York State Department of Public Service CEO Rory M. Christian said, “Kudos to Governor Hochul and her team for encouraging further adoption and deployment of zero-emission school buses. This program will help continue our move toward a cleaner environment, which benefits all of us.”

New York State Health Commissioner Dr. James McDonald said, “I thank Governor Hochul for her continued investment in the health of our children and commitment to building healthier communities across the state. Cleaner air means healthier kids, and reducing pollution around schools helps protect them from asthma and other respiratory problems.”

Modernizing public school transportation with zero-emission buses is a priority for Governor Hochul to ensure the health of New York students. The FY25-26 New York State Budget continued to build momentum for school districts to put electric school buses on the road this year while providing districts with additional flexibility and time to complete their electrification plans and get hands-on experience with this new technology. The new independent range estimate requirement for bus manufacturers will also give school districts greater confidence that the buses will meet specific mileage and route conditions.

Since NYSBIP’s launch, 88 school districts have applied for funds to purchase 529 buses, which includes 50 priority school districts accounting for 406 buses, and 400 districts are now working with NYSERDA to create Fleet Electrification Plans.

The Bond Act requires that disadvantaged communities receive no less than 35 percent, with a goal of 40 percent, of the benefit of total Bond Act funds. In line with this goal, NYSERDA aims to ensure that at least 40 percent of the New York School Bus Incentive Program benefits disadvantaged communities . Buses domiciled in priority districts are eligible for higher incentive amounts in support of new zero-emission buses and charging infrastructure.

New York State provides many resources for school bus fleet operators to transition their fleets to zero-emission buses, including an Electric School Bus Guidebook, a collection of practical user guides that highlight the benefits of electric school buses to make each part of transitioning a bus fleet easy to understand. This is a resource that can inform discussions with schools, New York State agencies, legislators, communities, manufacturers, bus dealers, and utilities to raise awareness on the Bond Act funding available to school districts and to help more communities understand the health and climate benefits that electric buses provide. Fleet operators seeking assistance should contact NYSERDA at schoolbus@nyserda.ny.gov .

State Senator Kevin Parker said, “The additional $200 million in funding for zero-emission school buses is a bold investment in our children’s health, our environment, and the future of clean energy in New York. By accelerating the transition to electric school buses, we’re not only reducing harmful emissions but also improving air quality and public health in our communities, especially in neighborhoods that have long suffered from high pollution levels. This is a win for clean energy, for equity, and for every New Yorker.”

State Senator Shelley B. Mayer said, “I am pleased that an additional $200 million is now available to school districts to support the transition to zero-emission school buses. New York has been a leader in the fight against climate change, and this funding, provided through the historic Clean Water, Clean Air, and Green Jobs Environmental Bond Act approved by New Yorkers, will further our efforts to reduce carbon emissions while alleviating financial burdens for New York schools. I would like to thank Governor Hochul and NYSERDA for their dedication to making New York a cleaner place, and I also extend my gratitude to the voters who approved this Bond Act.”

State Senator Jeremy Cooney said, “New York must remain committed to our environmental goals for a brighter future for New Yorkers, but we also realize that the state has a role to play in making this clean energy transition a reality. Today’s announcement is an important step in the right direction, and proof that we’ll continue to help our public schools, bolster charging infrastructure, and create a cleaner, healthier New York.”

Assemblymember William Magnarelli said, “The Governor’s investment in zero-emission school buses shows the state’s continued commitment to climate leadership and advancing equitable access to clean transportation. The investment allows for a smooth transition to clean transportation and alleviates the anxiety of how districts will pay for the buses.”

Assemblymember Michael R. Benedetto said, “I applaud Governor Hochul for making this a priority. This $200 million will help many school districts as they work to make the transition to electric buses. It’s a meaningful step toward cleaner air and healthier communities for our children.”

Assemblymember Didi Barrett said, “The upfront cost of zero emission school buses has been a significant concern for all of the schools in my Assembly District, and the vast majority of districts across the State. This newly released funding from the 2022 Environmental Bond Act offers welcome financial support for our schools to electrify their bus fleets, bringing us closer to creating cleaner, safer and quieter commutes for our school children while helping us get closer to our ambitious climate goals.”

Association of School Business Officials Executive Director Brian Cechnicki said, “Continued investments, including this funding, are critical for school districts to meet the state's zero-emission bus mandate, and we are appreciative of NYSERDA for partnering with districts in this work.”

New York School Bus Contractors Association President Tommy Smith said, “The New York School Bus Contractors Association is grateful that New York State continues to lead in financing the transition to electric school buses. We are excited about the advancements in battery technology that will further accelerate this initiative and help deliver cleaner, quieter, and more sustainable transportation for our students.”

Mothers Out Front Distributed Senior Organizer Sarah Smiley said, “It is great news for students, parents, and school districts that more funding is now available for electric school buses, charging infrastructure, and fleet transition planning. We hope more districts leverage the New York School Bus Incentive Program funding so that our children have clean rides to school and we can reduce emissions for a healthier planet.”

For more than fifty years, NYSERDA has been a trusted and objective resource for New Yorkers, taking on the critical role of energy planning and policy analysis, along with making investments that drive New York toward a more sustainable future. New York State is investing nearly $3 billion in electrifying its transportation sector and rapidly advancing measures that all new passenger cars and trucks sold be zero-emission. There are a range of initiatives to grow access to EVs and improve clean transit for all New Yorkers including EV Make Ready , EVolve NY , Charge Ready NY 2.0, the Drive Clean Rebate, the New York Truck Voucher Incentive Program, and the Direct Current Fast Charger Program.