TRENTON, N.J. — A bill that would allow school districts statewide to place advertisements on the exterior sides of their buses is advancing in the state Legislature, having passed out of the Assembly Education Committee on Thursday.
Under A1637, the board of education of any school district can enter into a contract to sell advertising space on school buses owned or leased by the district.
Advertisements for tobacco or alcohol products or for political advocacy would be prohibited, as would any other advertisements for products or services or by sponsors that the commissioner of education deems inappropriate. All advertisements would require prior approval by the local board of education.
Moreover, 50 percent of any revenue generated by the sale would be used by the board to offset the cost of fuel for providing pupil transportation services. The remaining 50 percent of the revenue would be used to support any programs and services the board deems appropriate.
The commissioner of education would evaluate the impact of school bus advertising and report on the evaluation to the governor and to the Legislature no later than one year following the effective date of the legislation and annually thereafter. The report would include the number of school districts which permit the advertising and the fiscal benefits derived from it.
The Associated Press (AP) reports that Republican assembly members who sponsored the bill, along with officials at some school districts, feel that the bill would benefit the state’s cash-strapped schools (Gov. Chris Christie cut aid to schools by $812 million this year) and are pushing for support of the bill.
"School boards are facing enormous pressure to maintain standards and services with significantly less financial resources than last year," Scott Rudder, who is one of the bill’s sponsors, testified at a hearing before the Assembly Education Committee. "This legislation will provide school districts with an opportunity to derive revenues from a new source and help to offset the impact of reduced state aid."
Bryan McGair, an assistant superintendent in Medford Township, wrote to the panel urging its support of the legislation, AP reports.
"Now, more than ever, is the time to remove some of the revenue shackles from local school districts in order for us to truly generate sustainable alternative revenues to support all aspects of our school program," McGair wrote. "Being permitted to sell advertising space on 70 district owned buses is projected to generate $350,000 annually for the Medford Schools. This equates to 1.5 to 2 cents on the tax rate each year."
New Jersey bill would allow ads on school buses
Under the legislation, the boards of education for school districts statewide can enter into contracts to sell advertising space on the exterior sides of buses that districts own or lease. Ads for tobacco or alcohol products or for political advocacy would be prohibited. Fifty percent of any revenue generated by the sale would be used to offset fuel costs for providing pupil transportation services.
More Safety

Does Reliable School Transportation Boost Attendance? EverDriven’s Data Says Yes
The new data shows 99.99% incident-free trips and strong on-time performance, reinforcing how dependable transportation, especially for vulnerable student populations, can help districts combat chronic absenteeism.
Read More →
What Data Shows About Student Transportation in 2026
Driver shortages, safety expectations, and staffing limits define student transportation in 2026. New survey data shows how fleet leaders are responding.
Read More →
NTSB Calls for Alcohol Impairment Systems, Seat Belts After W.V. Crash Investigation
The federal agency's report asks NHTSA to require all new school buses to be equipped with vehicle-integrated alcohol detection systems and passenger lap-shoulder belts.
Read More →
2026 State of Student Transportation Report
Student transportation teams are being asked to do more with less, facing driver shortages, rising costs, and increasing safety expectations. This report uncovers how fleets are adapting, where technology is making the biggest impact, and why student ridership tracking is emerging as a top priority. Download the report to explore the key trends shaping 2026 and what they mean for your operation.
Read More →
2 Students Die in Tennessee School Bus Crash with Dump Truck
A Carroll County accident claimed the lives of two students and injured over a dozen others on a March 27 field trip for eighth graders at Clarksville-Montgomery County. A preliminary report adds new information to the story.
Read More →
School Bus Laws to Watch: Driver Shortages, EV Debates & Safety Upgrades
From driver shortage solutions in Tennessee and rural connectivity debates in Utah to new safety laws in Wisconsin and ongoing electric bus mandate discussions in New York and Connecticut, here’s the latest in school bus legislation across the U.S.
Read More →
Senate Report: Autonomous Car Companies Hiding Reliance on Remote Operators
Waymo’s self-driving vehicles are under fire again after repeated school bus passing violations, raising questions about safety, remote operators, and regulation.
Read More →
Industry Suppliers Offer Distracted Driving Awareness Month Reminders
Distracted driving continues to pose serious risks in school zones, with new data and driver insights highlighting ongoing concerns and potential solutions to improve student and roadway safety.
Read More →
NTSB Names Michael Graham Vice Chair: Where He Stands on School Bus Safety
A former airline pilot has stepped into a new role at the independent federal agency, but where does he stand on issues like seat belts on school buses? Here’s what he’s said.
Read More →
'A Train Is Coming': Florida School Bus Close Call Highlights Critical Railroad Safety Reminders
Two recent close calls at railroad crossings, a train clipping a bus and a rear-end crash, highlight why vigilance and training still matter. Here’s what happened and what to tell your own drivers.
Read More →

