Governor Kathy Hochul released her Executive Budget proposal yesterday, outlining funding priorities and policy changes for the 2026–27 State Fiscal Year. The New York School Bus Contractors Association is actively reviewing the proposal to assess its potential impact on pupil transportation, contractor sustainability, and student safety. We remain committed to keeping our members informed and engaged as the budget process moves forward, and discussions continue with state policymakers. To view the 2026–27 State Aid Projections for your school district, click on the button below.

Click Here | 2026–27 State Aid Projections

Legislation Required to Enact the Budget:

Education, Labor, and Family Assistance – Article VII

$39.3 Billion in Total School Aid

The Executive Budget proposes $39.3 billion in total School Aid for the 2026–27 school year, the highest level of State aid in history. This represents a $1.6 billion (4.3%) year-to-year increase.

Key components include:

Transportation Aid

NYSED School Bus Driver Training Program

Transportation, Economic Development, and Environmental Conservation Key Provisions include:

Revenue Article VII

NYSBCA will continue monitoring budget negotiations and advocating for policies that support safe, reliable, and sustainable school transportation services across New York State. Further updates will be shared as the budget process advances.

Please note - Initial Zero Emission Busing Extension Waiver Applications submitted to NYSED prior to July 1, 2026 will be reviewed as part of the 2026-27 school year cycle. As such, school districts will not be notified of an approved application for an initial Zero Emission Busing Extension Waiver until after June 30, 2026. Extension Waivers granted during the 2026-27 cycle shall be effective for purchases and expenditures made during the 2027-28 and 2028-29 school years.

Click Here | Review to the News and Notes posted on NYSED’s website.

The New York State Education Department has issued the Zero Emission Bus Waiver Application, along with an accompanying guidance letter. This waiver is intended for school districts that are unable to incorporate zero-emission buses into their fleets in time to comply with the 2027 mandate, which requires that all newly purchased buses be zero-emission. The guidance letter outlines the criteria and steps required to apply for and secure a waiver.

Click Here | Guidance Letter

Click Here | Application

The New York State Education Department has published the 2025 Zero-Emission School Bus Implementation Progress Report, an annual report required by state legislation.

This year’s report provides an in-depth look at New York’s progress toward a fully zero-emission school bus fleet. It details advancements made over the past year, highlights ongoing challenges, and outlines infrastructure and implementation updates.

Take a moment to review this important update and see how New York is advancing the transition to zero-emission school buses statewide.

Contractors should confirm that their school districts have submitted the required SED Zero-Emission Bus survey to remain eligible for the upcoming EV waiver.

Click Here | SED ZEB Report

The New York School Bus Contractors Association (NYSBCA) is proud to join the New York Association for Pupil Transportation (NYAPT) for Operation Safe Stop on Wednesday, October 22, 2025, at the Fuller Road Firehouse, 1342 Central Avenue, Colonie, beginning at 10:00 a.m.

This annual event promotes school bus safety and raises public awareness about the dangers of illegally passing stopped school buses with flashing red lights. NYSBCA members are encouraged to attend and show their support.

“Operation Safe Stop is an important part of School Bus Safety Week, reminding every motorist to stop for flashing red lights and protect our students,” said Thomas W. Smith, President of the New York School Bus Contractors Association. “Student safety is our top priority, and by partnering with NYAPT, we’re urging all drivers to stay alert and do their part. Together, we can prevent tragedies and keep our children safe.”

Operation Safe Stop is a cooperative educational and enforcement effort supported by NYAPT, the New York State Governor’s Traffic Safety Committee, the New York State Education Department, NYSBCA, the New York State Bus Distributors Association, the student transportation industry, and law enforcement agencies across the state.

The illegal passing of stopped school buses remains a serious concern, as evidenced by stop-arm camera data and state and national surveys. Each incident endangers children as they board or exit the bus—reminding us that vigilance and education are key.

Every day, 2.3 million children in New York State are transported safely by highly trained, professional school bus drivers in vehicles maintained to the highest safety standards. According to the National Highway Traffic Safety Administration (NHTSA), students are 70 times safer riding a school bus to school than traveling by car.

Learn more about school bus safety at www.nhtsa.gov.

For Immediate Release: 7/22/2025

GOVERNOR HOCHUL ANNOUNCES ADDITIONAL $200 MILLION ENVIRONMENTAL BOND ACT FUNDING NOW AVAILABLE FOR ZERO-EMISSION SCHOOL BUSES

New York School Bus Incentive Program Makes Clean Buses and Charging Infrastructure More Affordable for Public Schools

Funding Supports Healthier Air, Climate Goals Through Electric School Bus Expansion

Governor Kathy Hochul today announced that an additional $200 million is now available for zero-emission school buses through the third installment of funding from the historic $4.2 billion Clean Water, Clean Air, and Green Jobs Environmental Bond Act of 2022. The funding, distributed through the New York School Bus Incentive Program (NYSBIP), supports the purchase of electric buses, charging infrastructure, and fleet electrification planning as public schools transition to zero-emission technologies that improve air quality and reduce pollution in communities. This investment helps ensure that schoolchildren, drivers, and the communities where they live across New York benefit from clean, quiet, and healthy buses.

“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,” Governor Hochul said. “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.”

Administered by the New York State Energy Research and Development Authority (NYSERDA), NYSBIP provides incentives to eligible school bus fleet operators, including school districts and school bus operators, that purchase zero-emission buses. It also offers charging infrastructure vouchers to help support the installation of Level 2 or DC fast chargers and provides funding to develop fleet electrification plans. This support helps ensure safer, more reliable transportation for students while giving schools the tools they need to make smart, cost-effective upgrades.

The funding is available on a first-come, first-served basis with incentive amounts covering up to 100 percent of the incremental cost of a new or repowered electric school bus. This helps offset some or all of the difference in purchase price between zero-emission buses and comparable diesel or gasoline buses. All school bus fleet operators in New York State can also qualify for funding for fleet electrification plans, which provide a customized roadmap for electric bus adoption.

New York State Energy Research and Development Authority President and CEO Doreen M. Harris said, “Today is the latest in a series of support that NYSERDA has offered to help make it easier for fleet operators to plan, navigate incentives for bus purchases and install vehicle charging infrastructure. We are excited to help more adopt zero-emission school buses through this additional Environmental Bond Act funding.”

Program eligibility and rules for charging infrastructure funding are available online through the NYSBIP Implementation Manual. School bus fleet operators do not apply directly for school bus funding. Vehicle dealers apply the funding to the price of buses on their behalf after fleet operators have issued purchase orders. Fleet operators apply directly to NYSERDA for charging vouchers, which support adding charging infrastructure to their depots.

Larger funding amounts are available for high-need school districts and school districts with significant portions of their population living in disadvantaged communities, as determined by the New York State Climate Justice Working Group criteria. While these districts are defined as priority districts through this program, all school districts can earn increased incentives by removing a gas or diesel bus from operation, purchasing wheelchair accessible buses, or purchasing buses with vehicle to grid capability. All school districts that complete fleet electrification plans also become eligible for higher funding amounts.

New York State Department of Environmental Conservation Commissioner Amanda Lefton said, “The continued rollout of zero-emission school buses is critical to improving air quality and protecting the health of students and drivers in communities across the State. Investments through the Bond Act are making the transition to these greener vehicles more affordable for school districts. Under the leadership of Governor Hochul and in coordination with our state agency partners, DEC remains focused on administering Bond Act funding to support this important program and continue momentum to help address climate impacts, reduce harmful emissions, and improve quality of life for New York families.”

New York State Department of Public Service CEO Rory M. Christian said, “Kudos to Governor Hochul and her team for encouraging further adoption and deployment of zero-emission school buses. This program will help continue our move toward a cleaner environment, which benefits all of us.”

New York State Health Commissioner Dr. James McDonald said, “I thank Governor Hochul for her continued investment in the health of our children and commitment to building healthier communities across the state. Cleaner air means healthier kids, and reducing pollution around schools helps protect them from asthma and other respiratory problems.”

Modernizing public school transportation with zero-emission buses is a priority for Governor Hochul to ensure the health of New York students. The FY25-26 New York State Budget continued to build momentum for school districts to put electric school buses on the road this year while providing districts with additional flexibility and time to complete their electrification plans and get hands-on experience with this new technology. The new independent range estimate requirement for bus manufacturers will also give school districts greater confidence that the buses will meet specific mileage and route conditions.

Since NYSBIP’s launch, 88 school districts have applied for funds to purchase 529 buses, which includes 50 priority school districts accounting for 406 buses, and 400 districts are now working with NYSERDA to create Fleet Electrification Plans. The Bond Act requires that disadvantaged communities receive no less than 35 percent, with a goal of 40 percent, of the benefit of total Bond Act funds. In line with this goal, NYSERDA aims to ensure that at least 40 percent of the New York School Bus Incentive Program benefits disadvantaged communities. Buses domiciled in priority districts are eligible for higher incentive amounts in support of new zero-emission buses and charging infrastructure.

New York State provides many resources for school bus fleet operators to transition their fleets to zero-emission buses, including an Electric School Bus Guidebook, a collection of practical user guides that highlight the benefits of electric school buses to make each part of transitioning a bus fleet easy to understand. This is a resource that can inform discussions with schools, New York State agencies, legislators, communities, manufacturers, bus dealers, and utilities to raise awareness on the Bond Act funding available to school districts and to help more communities understand the health and climate benefits that electric buses provide. Fleet operators seeking assistance should contact NYSERDA at schoolbus@nyserda.ny.gov.

State Senator Kevin Parker said, “The additional $200 million in funding for zero-emission school buses is a bold investment in our children’s health, our environment, and the future of clean energy in New York. By accelerating the transition to electric school buses, we’re not only reducing harmful emissions but also improving air quality and public health in our communities, especially in neighborhoods that have long suffered from high pollution levels. This is a win for clean energy, for equity, and for every New Yorker.”

State Senator Shelley B. Mayer said, “I am pleased that an additional $200 million is now available to school districts to support the transition to zero-emission school buses. New York has been a leader in the fight against climate change, and this funding, provided through the historic Clean Water, Clean Air, and Green Jobs Environmental Bond Act approved by New Yorkers, will further our efforts to reduce carbon emissions while alleviating financial burdens for New York schools. I would like to thank Governor Hochul and NYSERDA for their dedication to making New York a cleaner place, and I also extend my gratitude to the voters who approved this Bond Act.”

State Senator Jeremy Cooney said, New York must remain committed to our environmental goals for a brighter future for New Yorkers, but we also realize that the state has a role to play in making this clean energy transition a reality. Today’s announcement is an important step in the right direction, and proof that we’ll continue to help our public schools, bolster charging infrastructure, and create a cleaner, healthier New York.”

Assemblymember William Magnarelli said, “The Governor’s investment in zero-emission school buses shows the state’s continued commitment to climate leadership and advancing equitable access to clean transportation. The investment allows for a smooth transition to clean transportation and alleviates the anxiety of how districts will pay for the buses.”

Assemblymember Michael R. Benedetto said, “I applaud Governor Hochul for making this a priority. This $200 million will help many school districts as they work to make the transition to electric buses. It’s a meaningful step toward cleaner air and healthier communities for our children.”

Assemblymember Didi Barrett said, “The upfront cost of zero emission school buses has been a significant concern for all of the schools in my Assembly District, and the vast majority of districts across the State. This newly released funding from the 2022 Environmental Bond Act offers welcome financial support for our schools to electrify their bus fleets, bringing us closer to creating cleaner, safer and quieter commutes for our school children while helping us get closer to our ambitious climate goals.”

Association of School Business Officials Executive Director Brian Cechnicki said, “Continued investments, including this funding, are critical for school districts to meet the state's zero-emission bus mandate, and we are appreciative of NYSERDA for partnering with districts in this work.”

New York School Bus Contractors Association President Tommy Smith said, “The New York School Bus Contractors Association is grateful that New York State continues to lead in financing the transition to electric school buses. We are excited about the advancements in battery technology that will further accelerate this initiative and help deliver cleaner, quieter, and more sustainable transportation for our students.”

Mothers Out Front Distributed Senior Organizer Sarah Smiley said, “It is great news for students, parents, and school districts that more funding is now available for electric school buses, charging infrastructure, and fleet transition planning. We hope more districts leverage the New York School Bus Incentive Program funding so that our children have clean rides to school and we can reduce emissions for a healthier planet.”

For more than fifty years, NYSERDA has been a trusted and objective resource for New Yorkers, taking on the critical role of energy planning and policy analysis, along with making investments that drive New York toward a more sustainable future. New York State is investing nearly $3 billion in electrifying its transportation sector and rapidly advancing measures that all new passenger cars and trucks sold be zero-emission. There are a range of initiatives to grow access to EVs and improve clean transit for all New Yorkers including EV Make Ready, EVolve NY, Charge Ready NY 2.0, the Drive Clean Rebate, the New York Truck Voucher Incentive Program, and the Direct Current Fast Charger program.

New York State's Climate Agenda

New York State's climate agenda calls for an affordable and just transition to a clean energy economy that creates family-sustaining jobs, promotes economic growth through green investments, and directs a minimum of 35 percent of the benefits to disadvantaged communities. New York is advancing a suite of efforts to achieve an emissions-free economy by 2050, including in the energy, buildings, transportation, and waste sectors.

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FOR IMMEDIATE RELEASE: 

Tuesday, January 28, 2025

Contacts: 

Walter McClure | walter.mcclure@dmv.ny.gov

Andrew Waite | andrew.waite@dmv.ny.gov

DMV RENEWS EFFORTS TO GET MORE DRIVERS BEHIND THE WHEEL OF A SCHOOL BUS 

“Under-the-Hood” Exemption Eliminates Engine Compartment Requirement from School Bus Road Tests

Federal Waiver is Aimed at Reducing School Bus Driver Shortage

ALBANY—As the need for school bus drivers across the country, including in New York, persists, the New York State Department of Motor Vehicles is reminding prospective school bus drivers about efforts designed to remove barriers to becoming a certified bus driver.

A waiver from the Federal Motor Carrier Safety Administration (FMCSA) known as the “Under-the-Hood” exemption allows only Commercial Driver License (CDL) applicants planning to become school bus drivers to skip the pre-trip engine inspection portion of their road test. The exemption is aimed at helping districts in states across the country hire more bus drivers without sacrificing safety, as all other existing school bus inspection and maintenance standards continue to apply.

During their road tests, applicants must still perform the remaining elements of the Commercial Driver License vehicle inspection skills test.

“By continuing to offer the Under-the-Hood exemption, we’re paving the way for more people to get behind the wheel of a school bus, where drivers are needed to perform a critical service in our communities,” said DMV Commissioner Mark J.F. Schroeder, who also chairs the Governor’s Traffic Safety Committee. “What makes school bus drivers so irreplaceable is their ability to get our kids back and forth to school safely, not their ability to replace a crankshaft.”

DMV first implemented the exemption in January 2024 in support of Governor Kathy Hochul’s initiative to address the school bus driver shortage. Now that the waiver has been extended, DMV will continue to offer it through November 28, 2026, when the waiver is expected to expire.

In addition to offering the waiver, DMV has significantly expanded access to CDL road tests statewide by partnering with third parties to offer these tests rather than requiring applicants to take their skills tests at a DMV site. DMV has also worked with county-run DMV offices around the state to expand capacity for written commercial learner permit exams.

Despite these efforts, the need for bus drivers remains. In August 2022, nearly three-quarters of school district superintendents who responded to a New York State School Boards Association survey anticipated having bus driver staffing shortages that year. Districts still face a shortage, according to the New York School Bus Contactors Association.

“The driver shortage continues to be an issue for our members, with the impact varying by contractor. While we haven’t yet reached pre-COVID number of drivers, we are making progress, thanks in part to initiatives like the S-1 Under-the-Hood exemption,” said Paul Quinn Mori, Vice President of the New York School Bus Contractors Association. “For many potential drivers, the time spent under the hood can be stressful. The S-1 exemption allows these candidates to focus more on safe driving practices.”

The Under-the-Hood waiver applies to new CDL applicants or applicants who previously held, but no longer hold, a CDL and want the School Bus (S) and Passenger (P) endorsements. Applicants who have a current CDL are not eligible for this exemption.

CDL applicants who want the exemption must take the “Limited School Bus” road test.

The exemption requires the CDL Intrastate Only (K) restriction and the CDL School Bus Only (S1) restriction to be applied.

Applicants who choose to get the exemption must pass the “Limited School Bus” road test and visit a DMV office on or before November 28, 2026, to amend their license to a CDL.

Visit the DMV’s website for more information, including a list of steps to get a School Bus Only CDL.

For more information about the DMV, visit dmv.ny.gov or follow us on Facebook, X, LinkedIn and Instagram.

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Click Here | Download the Press Release

Understanding Future Changes to FMCSA's Safety Measurement System

January 16, 2025 | 3:00 PM

Click Here to Register

Join the Federal Motor Carrier Safety Administration for a webinar series to learn more about upcoming changes to the Safety Measurement System (SMS) methodology used to prioritize carriers for Agency intervention.

Part 1 of this series will focus on explaining the following three SMS enhancements:

You can review all the forthcoming changes on the CSA Prioritization Preview website.

FMCSA is currently redesigning the SMS web system to display the results of the new SMS methodology. In the coming months, FMCSA will announce the anticipated date for the launch of the new system. Until then, FMCSA will continue to use SMS to prioritize motor carriers for intervention.

The New York State Education Department posted the updated Consumer Price Index (CPI) for May 2024 is 3.9% to be used for contract extensions/multi-year term cost adjustments.

More detailed information can be found on the Pupil Transportation CPI Webpage.

The Metropolitan Transportation Authority (MTA) officials announced that yellow school buses with Department of Education contracts would be exempt from congestion pricing. This is good news for the school bus industry.

Click Here | NBC NY Article