Arizona Approves $7.5M More VW Funds for New School Buses
The state releases its third and fourth wave of settlement funds, approving the purchase of 67 new school buses for 35 school districts and charter schools.

Arizona released $7.5 million in its third and fourth waves of VW settlement funds, approving the purchase of 67 new school buses for 35 school districts and charter schools. File photo

Arizona released $7.5 million in its third and fourth waves of VW settlement funds, approving the purchase of 67 new school buses for 35 school districts and charter schools. File photo
PHOENIX — Arizona has released $7.5 million in its third and fourth wave of Volkswagen (VW) settlement funds, approving the purchase of new school buses for 35 school districts and charter schools.
Gov. Doug Ducey announced on Monday that the school districts and charter schools have received approval for the purchase of 67 new school buses. The funding is part of the state’s $38 million plan to provide low-income schools with new buses, according to a news release from the governor’s office.
“These new buses will have a big impact across the state, especially in rural communities,” Ducey said. “These funds will directly benefit low-income schools while helping ensure the safe transportation of our students to and from school. Arizona will continue to prioritize new investments in our K-12 public schools.”
As SBF previously reported, Ducey released the school bus replacement plan in June. The plan includes the purchase of approximately 280 school buses using VW settlement funds to low-income communities across the state. The plan also provides funding for 60% free and reduced lunch school districts, charter schools, and the Arizona School for the Deaf and Blind to replace buses with over 100,000 miles and older than 15 years.
During a two-month application period in the fall of 2018, school administrators received four training opportunities, on-demand online training resources, and a direct point of contact for technical assistance during the application process.
In the first wave of funding, as SBF reported in December, $15.9 million was awarded to 55 districts and charter schools for the purchase of 142 diesel and alternative-fuel school buses.
The second wave of funding, as SBF reported in January, awarded 22 school districts 76 diesel and alternative-fuel schools buses, totaling $8.4 million.
A full list of recipients for the third and fourth wave of funding can be found here.
To date, Arizona has approved 112 applications from school districts and charter schools, resulting in $31.8 million awarded for 285 buses, according to the governor’s office.
For more information on the plan, go here.
More Alternative Fuels

CALSTART and Forth Combine to Form Catalyst Mobility
The new name represents a renewed vision for the nonprofit focused on advancing clean, equitable, and affordable transportation solutions that move people and goods.
Read More →
Alt-Fuel Moves: New Buses, Charging Hubs & Real-World EV Testing
Propane and electric school bus deployments continue to grow as districts add new vehicles, expand charging infrastructure, and gather more real-world operating data.
Read More →
Fewer Electric School Bus Models Reshape the U.S. Market
WRI’s latest buyer’s guide points to a consolidating electric school bus market, but fewer options may reflect a maturing industry rather than fewer meaningful choices for school bus operators.
Read More →
The Fuel Budget You Can Actually Predict: How Propane Autogas Keeps Money in the Classroom
Learn how propane autogas helps school districts manage fuel costs with predictable pricing, lower maintenance, and reduced emissions from former transportation director Joel Stutheit.
Read More →
Hendrickson, Driventic Introduce New Electric Powertrain for School Buses
ELECTRAAX, the electrified, lightweight drive axle offers integrated ePowertrain efficiency and modular flexibility for Class 6–7 school bus use.
Read More →
The Mobility House Joins PowerFlex in Fleet Electrification Deal
The acquisition combines intelligent charging software, bidirectional charging expertise, and fleet electrification services to support the growing adoption of electric school buses across North America.
Read More →
Alt-Fuel Moves: Electric School Bus Investments Hit the Road
See which districts across the U.S. are putting electric school buses into service, expanding charging infrastructure, and planning the next phase of fleet electrification.
Read More →
With Fuel Volatility Ahead, School Districts Turn to Propane
While diesel prices peaked above $5 this spring, districts with propane autogas-powered fleets paid under $2 per gallon, according to PERC.
Read More →
EPA Unveils Proposed Changes to 2027 Heavy-Duty Engine Rules
The federal agency has proposed changes to next year’s targets that would eliminate DEF derates, ease warranty requirements, and retain current NOx emissions standards.
Read More →
Alt-Fuel Moves: EV Charging & Infrastructure Projects Gain Momentum
The latest developments include new funding, charging infrastructure, utility investments, and fleet technologies designed to support the transition to electric school buses nationwide.
Read More →
