SBF 70 years logo
MenuMENU
SearchSEARCH

School Bus Contracting in 2026: Fleet, Fuel, and Workforce Trends

Shifting fuel strategies, evolving workforce pressures, rising costs, and growing technology adoption define today’s transportation providers. Here’s what the data reveals about key issues shaping the contractor industry.

May 28, 2026
Row of yellow school buses parked side by side beside graphic text reading “School Bus Contracting in 2026 – Survey Results.”

Fewer contractors plan to buy new buses for the upcoming school year, but of those who do have purchase plans, alternative fuel usage is again on the rise as traditional diesel remains unchanged.

Credit:

Student Transportation of America/School Bus Fleet

3 min to read


School bus contractors are adjusting to a changing industry as new pressures arise and others begin to ease. This year’s survey of both small and large private operators shows caution blending with innovation and modernization.

Here’s a look at what trends contractors from across North America reported this year.

Ad Loading...

Don't miss the list of the 20 largest school transportation providers, our companion article to this post! Read "The 20 Largest School Bus Contractors in 2026."

What Trends Stood Out from This Year’s Survey Responses?

  • The largest contractors are generally getting larger, as mergers and acquisitions reduce competition.
  • There was a large gap in average fleet size across respondents this year. A few mega-contractors dominate volume, while most remain small to mid-sized.
  • The driver shortage continues to affect contractor fleets, though to a lesser extent than in previous years. Pay rebounded this year, crossing the $25/hour threshold.
  • Diesel remains dominant, though its use is not growing. Instead, we’re seeing much more diversification. Gasoline and propane usage both saw sizeable jumps in 2026. Electric adoption is still on the rise, but not by much, likely due to changes in federal funding and regulations.
  • New bus purchases are more uncertain compared to recent years, a likely result of fuel price volatility, general cost pressures, and policy uncertainty.
  • More drivers are represented by a union, with driver memberships jumping from 17% two years ago to 29% last year and 35% this year.
  • Technology adoption increased again, with over half of contractor fleets using parent apps, tablets, in-cab cameras, and predictive maintenance.
  • Operational challenges saw a sharp shift this year, as insurance and staffing topped contractors’ concerns, and supply chain strain fell off. In short, we appear to be moving from disruption management to cost and risk management.

Note: All data was compiled from qualified survey respondents at private contracting companies, collected in February and March 2026. To see your voice represented in these results next year, watch for announcements about 2027 survey dates and share your insight to help us identify challenges, opportunities, and report on the state of school bus contracting.

2026 Survey Results

  • Contractor Fleet Size in School Buses: Average: 4,476 | Median: 86
  • School District Contracts: Average: 155 | Median: 7
  • Students Transported Daily: Average: 322,545 | Median: 8,500
  • Average Terminal Manager Salary (Annual):$72,952
Bar chart showing current fuel types used by school bus contractors in 2026. Diesel leads at 95%, followed by gasoline at 84%, propane at 53%, electric at 32%, biodiesel at 11%, and CNG at 11%.

Alternative fuel use increased again this year, with propane and gasoline gaining popularity more than electric. Diesel use remains the same, suggesting that fleets are seeking greater fuel diversity.

Credit:

School Bus Fleet

Bar chart showing planned fuel types for future school bus purchases in 2026. Gasoline ranks highest at 78%, followed by diesel at 71%, propane at 36%, and electric at 28%.

Of the 65% of contractors planning to buy new buses soon, diesel interest remains steady year over year. Electric saw slight growth, while propane continues to rise, up about 10 percentage points since 2024. The biggest shift is gasoline, which rebounded sharply after dropping last year (56% were interested in gasoline in 2024).

Credit:

School Bus Fleet

Donut chart illustrating how contractors rate the impact of the school bus driver shortage: 50% moderate, 35% mild, 10% severe, and 5% none.

A trend reflected in our other surveys this year. Contractors also report that the driver shortage strain is easing. This year, no one reported desperate levels; severe reports dropped by half, and moderate shortages rose from 32% last year.

Credit:

School Bus Fleet

Bar chart showing average starting hourly pay for school bus drivers from 2022 to 2026, increasing from $20.55 in 2022 to $25.25 in 2026.

Pay for new drivers is back up after a dip in last year's results.

Credit:

School Bus Fleet

Donut chart showing unionization among school bus drivers, with 65% of contractors reporting no unionization and 35% reporting unionized drivers.

Union membership for school bus contractor drivers rises again this year, up from 29% last year and 17% the year before.

Credit:

School Bus Fleet

Horizontal bar chart highlighting the biggest challenges facing school bus contractors in 2026. Insurance and staffing tie at 65%, followed by fuel price increases at 35%, maintenance supply chain issues at 24%, and vehicle supply chain issues at 18%.

Supply chain issues dropped this year as the largest contracting headache. “Other” answers mentioned compliance with state mandates.

Credit:

School Bus Fleet

Technology in Contractor Fleets

  • Parent communication increased again this year, with over half (60%) of contractors using parent communication technology, up from 50% last year and 39% the year before.
  • Camera usage jumped this year, with 82% of contractors equipping all buses and 18% some buses with video surveillance. Last year, 69% of contractors had cameras installed across their entire fleet.
  • Tablet adoption is increasing again as more contractors report using mobile data terminals on their buses (12% have mobile data terminals on all buses, 53% on some, and 35% on no buses). Last year, 50% said they didn’t use any, compared to 69% the year prior.
  • 71% of respondents said all or some of their buses are equipped with predictive maintenance technology. Last year, 56% did.

Find the full results in the June/July 2026 issue of the magazine, coming soon!

Quick Answers

Transportation providers are shifting toward alternative fuels and more efficient technologies to reduce costs and environmental impact.

*Summarized by AI

Ad Loading...
Subscribe to Our Newsletter

More Management

Group of Thomas Built Buses executives, employees, and award recipients pose onstage during an awards ceremony beneath a large Thomas Built Buses sign, with one woman holding a glass trophy at center stage.
Managementby News/Media ReleaseMay 27, 2026

Thomas Built Buses Names Carolina Thomas 2025 Dealer of the Year

The North Carolina-based Thomas dealership is recognized for the second time for its customer support, operational excellence, and industry commitment, as other top-performing dealers were celebrated.

Read More →
Two First Student drivers walking in front of school buses with a Teamsters logo in the foreground.

96 Teamsters Locals Ratify Five-Year National Contract with First Student

The agreement covers more than 22,000 school bus workers nationwide, delivering stronger retirement benefits, expanded leave protections, and new safeguards for onboard bus surveillance technology.

Read More →
hopskipdrive whitepaper
SponsoredMay 26, 2026

The Essential Handbook for Safe Alternative Student Transportation

Your district's "exception riders" — students with IEPs, those experiencing homelessness, foster care youth — deserve more than a middleman solution. This handbook breaks down exactly what to look for in a supplemental transportation partner: from driver vetting and regulatory compliance to proactive safety technology. Because getting a ride isn't the same as getting a safe one.

Read More →
Ad Loading...
A red, white, and blue graphic with pictures of Tracy Voigt and text reading "Honoring U.S. Veterans: Tracy Voigt's Story."
Managementby Elora HaynesMay 25, 2026

How Does Military Logistics Experience Help Keep Students Moving Safely?

See how Army veteran Tracy Voigt went from coordinating construction and logistics in Afghanistan to leading school transportation operations in Minnesota in this National Military Appreciation Month profile.

Read More →
School bus driver stands in the doorway of a yellow school bus during the New York School Bus Contractors Association roadeo event, with dark storm clouds in the background and the NYSBCA logo in the corner.
Managementby News/Media ReleaseMay 24, 2026

New York School Bus Contractors Association Announces 50th Roadeo Winners

Winners, photos, and highlights from the 2026 NYSBCA School Bus Driver Safety Competition, where drivers across the Empire State showcased safety skills and precision behind the wheel.

Read More →
An orange and red graphic with text reading "Surface Transportation Bill Moves Forward."
Managementby Elora HaynesMay 22, 2026

The BUILD America 250 Act Has Big Implications for School Buses, Too

Buried within a sweeping federal transportation bill are provisions that could affect school bus driver requirements, illegal passing enforcement, and even the future role of autonomous technology in pupil transportation.

Read More →
Ad Loading...
Aaron Sepkowski poses next to a Pocono Transportation school bus. Text read "Aaron Sepkowski, Pocono Transportion," alongside a SBF Contractor of the Year logo.
ManagementCover Storyby Elora HaynesMay 21, 2026

The Mindset That Keeps a Decades-Old Company Moving Forward: Aaron Sepkowski, 2026 Contractor of the Year

With nearly two decades at the helm of Pocono Transportation, Aaron Sepkowski has transformed a family-run operation into a modern, safety-focused contractor, while championing innovation, workforce development, and advocacy across Pennsylvania’s school transportation industry.

Read More →
Image of the front of a school bus with text reading "2026 Industry Awards in School Transportation."
Managementby StaffMay 20, 2026

What Student Transportation Companies Are Landing on Time’s Most Influential List, and More

From AI-powered safety platforms to electric fleet innovation, companies across the student transportation industry are earning national recognition for reshaping how students get to school safely and sustainably.

Read More →
A red, white, and blue graphic with pictures of Martin Staples and text reading "Honoring U.S. Veterans: Martin Staples' Story."
Managementby Elora HaynesMay 18, 2026

Why Student Transportation Felt Familiar to This Former Navy Aviator

See how Martin Staples applies decades of mission-focused leadership and operational experience to helping school districts keep students safe in this National Military Appreciation Month profile.

Read More →
Ad Loading...
The Route thumbnail with school bus fleet logo
ManagementMay 15, 2026

‘Magical Hospitality’ and the Secret Behind Better School Bus Tech

Keith Corso and the BusRight team make it a goal to exceed expectations, always. Hear the secret sauce behind this 2026 Trailblazer in his own words in this podcast.

Read More →