Michigan Awards $35.9 Million to Expand Clean School Bus Fleet

The Michigan Department of Education and EGLE announced new grants supporting 23 school districts with funding for 97 electric and propane buses, pushing the state’s clean-fueled fleet close to 900 vehicles.

• By Stasia DeMarco
• October 14, 2025

 Michigan is accelerating its transition to cleaner school transportation with a new $35.9 million investment to help 23 school districts add 87 electric buses and 10 propane buses. The funding comes through the Michigan Department of Education’s Clean Bus Energy Grant (CBEG) program, supported by the Michigan Department of Environment, Great Lakes, and Energy (EGLE).

The announcement marks the third funding round under the CBEG program. Combined with prior state and federal investments, the total number of clean-powered school buses under procurement or in service in Michigan is approaching 900 units. Participating districts receive funding not just for vehicles but also necessary infrastructure like charging stations.

Officials say the grants will deliver multiple benefits: reducing diesel emissions in bus loading zones, improving air quality for students and communities, and freeing up local school budgets for educational priorities. Interim State Superintendent Dr. Sue Carnell noted that the transition aligns with Michigan’s strategic education goals on student health and wellness. EGLE Director Phil Roos added that under the Whitmer administration, the state is prioritizing investments that support clean energy, public health, and environmental equity.

Eligible applications for a final round, expected to allocate up to $44 million, are due by December 18, 2025. Districts interested in upgrading their fleets with electric or propane buses can apply through the CBEG program portal.

This initiative builds on prior funding efforts: in 2022, the U.S. Environmental Protection Agency contributed $54 million via its Clean School Bus Rebates program, helping dozens of Michigan districts acquire clean-powered buses and infrastructure. Previous state rounds in 2024 awarded nearly $45 million to support districts in purchasing hundreds of electric and propane buses.

For school districts balancing budget pressures, the grants offer a significant boost toward cleaner, quieter, healthier bus fleets — especially for districts serving students in high-traffic or pollution-prone areas. Health and environment advocates applaud the move as a constructive step toward Michigan’s Healthy Climate Plan and broader efforts to reduce fossil fuel emissions.