As part of the Infrastructure Investment and Jobs Act, the U.S. Federal Government has dedicated $5 billion in funding to deploy zero-emission and clean school buses over the next five years. Priority districts can receive up to $375,000 per bus in funding, which can represent up to 100% of an all-electric school bus price, while other eligible districts can receive up to $250,000 per bus. EnergyStar-certified charging infrastructure is also eligible for funding. A list of priority districts will be released by the EPA in early May.

Organizations that can benefit from rebates under the program include state and local government entities which provide school bus services, for-profit and non-profit school bus contractors that meet eligibility requirements, non-profit school transportation associations, tribes, tribal schools and tribal organizations.

The first $500 million in this funding will be awarded this year, with applications expected to be open for a period of 90 days beginning in May. Awardees will then be determined by a lottery system.