Another $200M Now Available for Electric School Buses in New York

July 31, 2025

A row of five new electric Thomas Built Buses sit in their permanent parking spots at Bethlehem Central School District near Albany, New York, which received the vehicles on July 21, 2022 for the new school year. — A row of five new electric Thomas Built Buses sit in their permanent parking spots at Bethlehem Central School District near Albany, New York, which received the vehicles on July 21, 2022.

The third round of funding through the $4.2 billion Clean Water, Clean Air and Green Jobs Environmental Bond Act of 2022 is now available for zero-emission school buses in the state of New York.

Gov. Kathy Hochul announced July 22 an additional $200 million distributed through the New York School Bus Incentive Program (NYSBIP). The second installment of $200 million was made available a year ago, while the first round of $100 million was announced in October 2022.

The funding covers everything from the purchase of the electric school buses to the charging infrastructure and fleet electrification planning.

“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,” Hochul said in a statement. “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.”

The program is administered by the New York State Energy Research and Development Authority (NYSERDA), while NYSBIP provides incentives to eligible school bus fleet operators, including school districts and private contractors, that purchase zero-emission buses.

The funding is available on a first-come, first-served basis with funding amounts covering up to 100 percent of the incremental cost of a new or repowered electric school bus. Priority districts identified as high-need school districts and disadvantaged communities are available to receive larger funding amounts.

The deadline to purchase zero-emission school buses in the state nears amid the latest funding round. All new school buses purchased statewide as of Jan. 1, 2027, must be zero emissions and all school district and contractor fleets must be 100 percent zero emissions by 2035. The recently passed state budget extended a deferment until 2029 for school districts that demonstrate their challenges with meeting the mandate.

The NYSBIP defines zero emissions as electric or hydrogen fuel cell school buses, though only the latter are currently available.