All About the Clean School Bus Program

Every day, an estimated 21 million students ride to school on diesel-burning school buses, which expose them to dangerous diesel exhaust pollution. This pollution has been proven to cause cancer, asthma, respiratory issues and even problems with brain development.

But in 2021, after years of tireless advocacy by individuals and organizations nationwide, the Bipartisan Infrastructure Law of 2021 delivered a major win for students with the creation of the EPA’s Clean School Bus Program (CSBP). The historic program designates $5 billion over five years to replace diesel-burning school buses, bringing cleaner air to students across the country. 

The program has helped transform school transportation in districts nationwide, ushering in a new era of clean rides for kids. As of July 2025, the CSBP has funded more than 8,500 electric school buses. More than 1,200 school districts across the country – educating more than 16 million students – have CSBP-funded school buses on the road.

The CSBP is a bipartisan solution to a problem impacting students in all parts of the country. From coastal cities to rural towns and mountain villages, children in red and blue states alike are breathing easier thanks to their CSBP-funded rides.

Here’s how the program works.

The basics

The CSBP was established by the Bipartisan Infrastructure Law of 2021 as a $5 billion program through the EPA. The agency was tasked with awarding all funds in a five-year period, meaning the program is set to run through 2026.

The law says that half of the $5 billion is designated exclusively for electric school buses, while the other half can be used for both electric school buses and a few other types of non-diesel-burning school buses.

Participating in the CSBP is entirely optional: School districts that want funding for new school buses can choose to apply for CSBP funds during each round of applications. As part of their application, school districts choose what type of new school bus they’ll get, such as an electric school bus or a propane-burning school bus.

As of July 2025, there have been three completed rounds of CSBP funding, amounting to nearly $3 billion in funding awarded. Electric school buses accounted for 89% of the requested school buses, reflecting districts' overwhelming preference to apply for electric school buses.

Typically, funding rounds for the CSBP have been open for applications for a few months at a time. Then, a few months after applications close, school districts are informed whether or not they’ve been awarded funding. 

Through the first three rounds of funding there have been two different types of application processes: two rounds were rebate funding, and one round was grant funding. 

The rebate funding process has been much simpler than the grant funding process. It has a short application and limited paperwork, and the rebate rounds have awarded funding based on a lottery of all qualified applicants. 

The grant round had a more in-depth application and allowed applicants to ask for more funding than the rebate round. Grant round funds are awarded based on the strength of the application.

In all rounds, the EPA has prioritized low-income, rural and Tribal school districts for funding, in accordance with the Bipartisan Infrastructure Law. The CSBP also allows for a few different types of eligible entities — such as fleet operators, manufacturers, government offices and Tribal Nations — to apply for funds on behalf of the school districts they serve. School districts can also apply directly.

When a school district or other organization is awarded funding, they have a certain amount of time to use the funds to purchase a new electric school bus and any related charging infrastructure and then take the old diesel-burning school bus out of operation. In some cases they also need to scrap the old bus. The details for this process vary by round, but districts are typically required to keep documentation to show that they are in compliance with their funding award.

CSBP funding rounds completed so far

The CSBP has been hugely popular with school districts.

In all three funding rounds completed as of July 2025, districts have applied for more funding than was available, resulting in the EPA increasing the amount of funding available per round. Even with that increase, the funding couldn’t keep up with school district demand for electric school bus funds.

So far, the CSBP has awarded more than $2.7 billion to more than 1,200 school districts. Together, these districts serve 16 million students who stand to benefit from cleaner air.

Because of the strong preference for electric school buses from school districts and other applicants, 95% of school buses funded by the CSBP so far are electric. All told, the CSBP has funded nearly 8,500 electric school buses in 49 states, four U.S. territories, Washington DC and more than 50 Tribal school districts.

Here’s a round-by-round breakdown.

Round 1: The 2022 Clean School Bus Rebate Program

In the first round of CSBP funding, the EPA had planned to make $500 million available via rebate. School districts and other eligible entities responded with overwhelming demand, applying for nearly $4 billion in funding.

To accommodate this extraordinary demand, the EPA nearly doubled the funding available, awarding $965 million. This funding covered more than 2,400 new school buses, of which 95% were electric school buses, based on school district choice. Approximately 99% of funding recipients were designated as EPA priority districts, meaning that they were low-income, rural or Tribal districts. 

Funding for electric school buses through the 2022 Clean School Bus Rebate Program went to schools in 49 states, Washington DC, American Samoa, Guam, Puerto Rico, the U.S. Virgin Islands and 13 Tribal school districts. All told, 389 school districts and fleet operators received CSBP funding in round one.

Applicants were allowed to ask for funding for up to 25 new school buses as part of the 2022 Clean School Bus Rebate Program. Here’s the breakdown:

2022 Clean School Bus Rebate Program
Total funding awarded	$965 million
Total school buses funded	2,400+
Percent electric school buses	95%
School districts awarded funding	389
Percent of funds to EPA priority districts	99%
Funding school districts applied for	~$4 billion

To learn more about the funds awarded in the 2022 Clean School Bus Rebate Program, see the EPA website.

Round 2: The 2023 Clean School Bus Grants Program

The second round of CSBP funding was a grant round and again saw overwhelming demand. While the EPA had planned to award $400 million in grant funding, school districts and other eligible groups applied for more than $2 billion in funding. As a result, the EPA ultimately awarded $965 million in grants for more than 2,700 school buses.

Once again, school districts and other applicants drastically preferred to apply for electric school buses over other options, with approximately 95% of awards going to electric school buses. 

The 2023 Clean School Bus Grants Program allowed applicants to get funding for up to 50 school buses, compared to 25 school buses in the rebate rounds. 2023 Clean School Bus Grants Program funding went to 270 school districts and fleet operators in 37 states, one territory and 20 Tribal school districts.

Here’s the breakdown:

2023 Clean School Bus Grants Program
Total funding awarded	$965 million
Total school buses funded	2,700+
Percent electric school buses	97%
School districts awarded funding	280
Percent of funds to EPA priority districts	85%
Funding school districts applied for	~$2 billion

To learn more about the funds awarded in the 2023 Clean School Bus Grants Program, see the EPA website.

Round 3: The 2023 Clean School Bus Rebate Program

The third round of CSBP funding was a rebate round and, once again, school district demand for electric school buses far outpaced the funds available. 

The EPA ultimately increased the amount of available funding from $500 million to $900 million in the 2023 Clean School Bus Rebate Program. This round funded the highest number of new school buses, awarding funds for more than 3,200 buses. Demand for electric school buses was overwhelming in this third round of funding, too, with 99% of awarded funds going to electric school buses.

Approximately 530 school districts in 46 states, Washington DC, Puerto Rico and 17 Tribal school districts were awarded funds.

2023 Clean School Bus Rebate Program
Total funding awarded	$900 million
Total school buses funded	3,200+
Percent electric school buses	88%
School districts awarded funding	530
Percent of funds to EPA priority districts	67%
Funding school districts applied for	~$1.7 billion

To learn more about the funds awarded in the 2023 Clean School Bus Rebate Program, see the EPA website.

Other information

• In some instances, the amount of funding or awards originally announced by the EPA is different from the total amount it ultimately allocated. This discrepancy can be caused by a few factors, including school districts rescinding or delaying their awards based on their own circumstances. To see the latest data, check the EPA website.
• In September 2024, the EPA announced a fourth round of CSBP funding, the 2024 Clean School Bus Rebate Program, and opened the program up for applications. Applications closed in January 2025. As of July 2025, there is no information about awards to be allocated through this funding round.
• In January 2025, the Trump Administration paused disbursement of funds under the Bipartisan Infrastructure Law, including funding for the CSBP. In February 2025, following court orders related to this pause, recipients of funds through the 2023 Clean School Bus Grants program reported they were able to access their awarded funds again. In April 2025, the EPA announced that 2023 Clean School Bus Rebate funding was being distributed, and awardees reported that funds were moving again. 
  
   

Program details

The CSBP is a funding program that allows school districts and other eligible groups to apply for federal funding to replace diesel-burning school buses that are currently in use with cleaner options like electric school buses.

The exact details of the program sometimes differ by funding round, but here are some important things to know. To learn more, head to the EPA’s website.

Who’s eligible?

All public school districts in the U.S. are eligible for CSBP funds. That includes school districts in all 50 states, Washington DC, and territories, as well as Native Tribes, Tribal organizations and Tribally controlled schools. Public charter school districts are also eligible.

Other types of organizations are typically eligible to apply too, including:

• Private fleet operators, service providers and contractors
• Nonprofit school transportation associations
• School bus original equipment manufacturers (OEMs)
• Regional Education Service Agencies or Joint Transportation Agencies with a National Center for Education Statistics (NCES) ID

This eligibility may be different round-by-round. Groups like private fleet operators and OEMs might apply on behalf of a school district but would need to include paperwork showing that they have the district’s approval.

How much funding can school districts get?

This varies by funding round. In the most recent round of applications, the 2024 Clean School Bus Rebate Program, school districts on the EPA’s priority districts list could apply for up to $325,000 per electric school bus. School districts not on EPA’s priority list could apply for up to $170,000 per electric school bus. This funding can cover the purchase of both the bus and related charging infrastructure — but only up to the actual cost.

School districts could also receive an additional $20,000 per electric school bus if the bus had a wheelchair lift. School districts in Alaska, Hawai’i, Puerto Rico, Guam, American Samoa, the Northern Mariana Islands and the U.S. Virgin Islands were also eligible for an additional $20,000 in funding to help cover the cost of shipping.

What can the funding cover?

CSBP funding is used to replace fossil fuel-burning school buses that are currently in operation at a school with cleaner models, like electric school buses. In the most recent round of funding, the 2024 Clean School Bus Rebate Program, school districts replacing a diesel-burning school bus made in 2010 or earlier were prioritized for funding.

Awarded funding can cover the cost of purchasing new electric school buses to replace diesel-burning school buses and the cost of related electric school bus charging infrastructure. In some rounds, the funding could also be used to cover some related project costs, like workforce training and project management.

What are priority districts?

In accordance with the Bipartisan Infrastructure Law, the EPA prioritized the applications of certain school districts and made these districts eligible for higher levels of funding. At the start of each round of funding, the EPA has published a list of priority districts.

Per EPA policy, these priority districts are described as:

• High-need school districts
• Low-income areas
• Certain rural school districts
• Bureau of Indian Affairs-funded school districts
• School districts that receive basic support payments for children who reside on Indian land

School districts need to meet only one of these criteria to be considered a prioritized school district. In recent rounds of funding, school districts have had the opportunity to self-certify as priority school districts even if they are not on the EPA’s published list of priority districts, if they meet certain criteria. 

When is the next funding round?

The EPA has not announced the next funding round. To hear when funding is open for applications, be sure to sign up for our email updates.

How does the funding work?

When a school district or another eligible entity is awarded CSBP funding, it typically comes with some requirements. These vary by round and by funding type, but usually it involves:

• Placing a purchase order for the new school bus within a certain amount of time
• Taking the old diesel-burning school bus out of commission
• Scrapping the old diesel-burning school bus so that it doesn’t get sold to another community where it would pollute the air

The funding works in a couple of different ways, depending on the type of round. In general, CSBP funding is applied “on the hood,” meaning it is used to directly reduce the price the school district itself pays for a new electric school bus – in the first rebate round, that meant school districts often paid $0.

In the rebate rounds, a district or other organization awarded funding typically places a purchase order with a school bus dealership or OEM. Then, they submit a payment request form to the EPA along with some other documentation, including the purchase order. The EPA usually distributes the funding to the district within about 60 days of approving the payment request form. When the new electric school bus is delivered, the district uses the CSBP funds they’ve received from the EPA to cover all or some of the purchase price.

In the grant round, school districts typically use an EPA payment portal to see their awarded funds and to draw down funds when they are ready to pay for their new electric school bus. When they draw down the funds and pay the dealership or OEM, the district needs to submit some paperwork to the EPA to show how the funds were used and to demonstrate compliance.

How to apply for CSBP funding

Applications for CSBP funding are currently closed. To learn more about the application process for the most recent round of funding, check out our explainer here. To learn when the next round of funding opens, sign up for our email updates.

Additional resources

School districts at any stage of the school bus electrification process can get started with the following tools and resources: 

• The EPA website has the latest information about the Clean School Bus Program
• Our Step-by-Step Guide for School Bus Electrification provides considerations and things to do at every stage of the process
• The Electric School Bus U.S. Market Study and Buyer’s Guide compares available bus models
• The All About Series of explainers on everything from charging infrastructure to funding and financing models
• Learn about some key considerations for which routes to start with in our article, How School Districts Can Include Equity When Choosing Where to Deploy Electric School Buses First
• The Electric School Bus Series spotlights success stories from across the U.S. (and Canada!)
• Resources for working with your utility and visualizing electrical infrastructure at your facility can help you get started

Technical assistance

WRI’s Electric School Bus Initiative is offering free, independent support to all school districts through one-on-one conversations. Schedule one today!

Many other organizations provide technical assistance and education on electric school buses – view a list of our partners here. For example, you can join CALSTART’s Electric School Bus Network, which provides peer-to-peer networking and dialogue-driven forum meetings. You can also seek assistance from the EPA and its partners, the National Renewable Energy Laboratory (NREL), Clean Cities Coalitions and local organizations with EV expertise.