CONCORD, N.C. — More questions than answers currently exist on what the funding future of clean school buses will look like, following program cuts, elimination of EV mandates, and executive orders from the Trump administration.
Joe Annotti, the vice president of incentives for TRC Clean Transportation Solutions, attempted to provide some clarity in “an era of deregulation” on Sunday during STN EXPO East in Charlotte. He noted that despite the belief stated by media that President Donald Trump is making unprecedented changes and reevaluations of agencies and programs, the actions are normal. Annotti relayed that presidents come in all the time, stop and relook at programs, before funds get flowing again.
He referenced 2005, when former President Goerge Bush altered federal grant structures to states by moving to “blocks,” and when former President Barack Obama immediately cut 5 percent of the U.S. Environmental Protection Agency’s (EPA) operating budget.
What is unprecedented, however, is the amount of funding being allocated to school buses, primarily clean school buses. That, by way of the Clean School Bus Program, is now in peril.
Meanwhile, Annotti said there are currently over 700 clean transportation state and local incentive programs. Of those, 124 could fund school bus projects, whereas 26 prioritize or exclusively fund school bus projects. He said $3 billion is available from the combined 124 programs, yet more than half of that ($1.8 billion) funds the 26 school bus eligible programs.
In his opinion, he said those 26 programs are the ones on the Trump administration’s chopping block.
“Gone are the days for the flat rate voucher incentives,” he said, adding there’s a renewed focus on cost-effectiveness. Federal programs covering 80 percent of the cost of the bus is probably a thing of the past.
Of the 124 programs that could fund school buses, 25 are exclusive to battery-electric and 50 of them are located in California, he added.
He discussed expectations, such as federal agencies may terminate award programs that no longer effectuate goals or agency priorities. He noted that multiple grant programs across agencies are cancelled or modified or modified.
Annotti answered attendee questions and said that in terms of the EPA Clean School Bus Program funding, rounds 3 and 4 are where he sees disruptions. Round 1, he said, is done. Round 2 awards were issued, and most are under a contractual agreement, which he said leads him to believe they are safe.
Round 3 has not yet been awarded, and the EPA has not yet issued funding decisions, which may never happen, he noted. He said Round 4, which was supposed to be announced later this year or early next, is not on his funding calendar at all.
He clarified that if the program is cut, projects would be funded up until the day that announcement is made. Any purchases made prior to a decision would still be funded.
As for the possibility of manufacturers raising their school bus prices due to the impending Trump tariffs, he said the EPA won’t allocate more award funds than called for in the original contract agreement.
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Annotti advised attendees to assess what stage in the federal reward process they are in, whether they’ve actually won award, if they’ve spent federal money, or they’re in the process of purchasing. He advised fleets to act cautiously, as money is not guaranteed, adding that when writing grants fleets need to recognize the changed priorities and tailor their message to the audience.
“Change your tune when asking for funding,” he said, noting that attendees need to consider how their proposed project is benefiting the EPA’s latest priorities. “Match with what they need to hear, not what you want to say.”
He said current unpopular topics with the feds include: Regulations, DEI/community engagement, and renewable energy. Popular topics include: Tariffs, deregulation, economic development and fossil fuels.
TRC is hosting the Advanced Clean Transportation Expo next month in Anaheim, California. School Transportation News is an official media sponsor of the event.
