Arizona Approves Nearly $16M of VW Funds for New School Buses
The state plans to use about a quarter of its Volkswagen settlement money to buy 142 new school buses in low-income communities.

Arizona plans to use about a quarter of its Volkswagen settlement money to buy 142 new school buses in low-income communities. File photo courtesy of Clark County (Nev.) School District

Arizona plans to use about a quarter of its Volkswagen settlement money to buy 142 new school buses in low-income communities. File photo courtesy of Clark County (Nev.) School District
PHOENIX — Arizona has announced plans to purchase new school buses using $15.9 million of its Volkswagen (VW) settlement funds.
The plan for the first round of awards from the $38 million plan was approved on Dec. 6, according to a news release from Gov. Doug Ducey's office. It includes the purchase of 142 new diesel and alternative-fuel school buses for 55 school districts and charter schools. This accounts for about 25% of the state's total $57 million share of the VW Environmental Mitigation Trust.
As SBF previously reported, Gov. Doug Ducey released the school bus replacement plan in June. The plan includes the purchase of an estimated 280 school buses in low-income communities across the state, replacing school buses that are at least 15 years old and have more than 100,000 miles. The plan also includes the allocation of funds to school districts with 60% or more students eligible for free and reduced price lunch and to the Arizona State Schools for the Deaf and Blind.
“Finding new, innovative opportunities to increase much-needed resources for K-12 will continue to be a major focus of my administration,” Ducey said. “The purchase of these school buses will ensure that schoolchildren will be safely transported to and from school and that schools can leverage these dollars or use cost savings from efficiencies to further update their fleets or for other capital needs.”
So far, the state has received 118 applications to replace old school buses, resulting in requests for 362 buses at a cost of $40.4 million. State officials are continuing to review applications and are working with applicants to secure additional documentation. A second round of awards is expected to be announced in the near future.
See the list of applications awarded here.
More Management

5 Questions: How CharterUP Brought a Marketplace to Student Transportation
What does it take to bring a transportation marketplace into K-12? Hear firsthand what CharterUP has learned about the unique needs of schools and bus operators.
Read More →
EverDriven Expands TripCentral Transportation Management Platform to All Partner Districts
The platform provides school districts with real-time trip tracking, student transportation scheduling tools, and pickup and drop-off management capabilities.
Read More →
6 School Transportation Trends to Watch: 2026 District Survey Results
School bus buying is up, fuel choices are shifting, and driver shortages persist. This and more in the latest K-12 public school survey, plus the largest fleets in the U.S.
Read More →
The 100 Largest School Bus Fleets in America: 2026 Rankings
Which public K-12 school districts are the largest in the nation in terms of bus fleet size? Here are the new standings of the top 100 district fleets.
Read More →
EverDriven Launches Route Consolidation Calculator to Estimate Diesel Savings
As diesel prices hit record highs, the largest alternative transportation provider says a 10% route consolidation could save a 120-route district more than $78,000 a year in fuel alone.
Read More →
Zum Secures Continued Financing Support for School Bus Expansion
Generate Private Credit has financed approximately $75 million in school bus deployments across three states, supporting more than 500 buses as Zum expands across the county.
Read More →
Beyond Discipline: A Different Approach to Student Behavior on the Bus
After implementing a dean of students program in Oregon, North Clackamas is seeing positive improvements. Here’s how it worked. The Route is brought to you by IC Bus.
Read More →A Dean of Transportation's Different Approach to Student Behavior on the School Bus
After implementing a dean of students program in Oregon, North Clackamas is seeing positive improvements on the bus. Here’s how it worked.
Read More →
Inside NAPT ACTS 2026: Highlights from Louisville
From federal updates and student behavior strategies to new school bus technology and industry awards, see highlights from NAPT ACTS 2026 in Louisville.
Read More →
Meet the 2026 School Bus Driver Hero Winner: Annette Brown
We caught up with Wa-Nee Community Schools' Annette Brown on site at SBFX, where she was named the 2026 School Bus Driver Hero Award winner. Hear about her reaction, what she loves most about being a school bus driver, and more!
Read More →
