New York announces $200M available to speed transition to zero-emission school bus fleets

Fleet of school buses

July 30, 2025

New York has opened the third round of funding for its New York School Bus Incentive Program (NYSBIP), providing up to $200 million to purchase zero-emission school buses and related infrastructure.

The program’s main priority is to provide districts and schools with the purchasing power needed to transform their fleets, focusing on buying electric buses, installing charging infrastructure and planning fleet electrification. The program is a critical aspect of the state’s ongoing effort to fully transition to zero-emission technologies and reduce greenhouse gas emissions.

To be eligible for purchase, school buses must be a new Class 3-8 Battery Electric Vehicle or fuel cell-powered electric vehicle. Repowered vehicles that have had their combustion engine replaced with a zero-emission alternative are also eligible for coverage.

Purchased buses must meet all federal and state requirements for operations, with the electric motor, drive train and battery pack covered by a warranty. Purchasers may receive a voucher bonus by scrapping school buses that are being replaced.

Recipients may receive charging vouchers to kickstart charging infrastructure installation. These vouchers can be used to install Level 2 chargers and related equipment. Applicants who have completed a fleet electrification plan may qualify for a higher voucher amount.

Fleet electrification plans are functional roadmaps detailing plans to adopt zero-emission vehicles and build out charging infrastructure by 2035. These include priority actions to achieve these goals and must include information on a number of items. The plans must provide:

  • An overview of the fleet operator’s electrification goals, including a proposed timeline and milestones.
  • An analysis of the time and distance included in each bus route, defining route specifications, minimum battery requirements and how much energy is needed to charge the batteries.
  • An assessment of the existing grid connection and how much additional electrical capacity is needed. The analysis will determine equipment, upgrades and costs are required to reach that capacity.
  • A charging strategy providing insight into power demands throughout the day.
  • A phasing plan identifying required capital works projects, vehicle replacement plan and phased plan for charger installation.

Funding will be available on a first-come, first-served basis. All awards can be used to cover up to 100% of the cost of a new or repowered electric school bus, charging infrastructure and fleet electrification planning.

Photo by Bl∡ke from Pexels

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