Arizona Tabs $5M More VW Funds for New School Buses
The state releases its final wave of the settlement funds, approving the purchase of 45 new school buses for rural districts and charter schools.

Arizona released $5 million in its final wave of VW funding, approving the purchase of 45 new school buses for rural school districts and charter schools. File photo

PHOENIX — Arizona has released $5 million in its final wave of Volkswagen (VW) settlement funding, approving the purchase of new school buses for 45 rural school districts and charter schools.
Gov. Doug Ducey announced on Monday that the school districts received approval for the purchase of new school buses after the state had remaining funds available from a $38 million plan to purchase new school buses for low-income schools.
The state chose to allocate the remaining funds for the buses to schools in rural counties, and removed all requirements for receiving a school bus except for those criteria required as part of the original settlement agreement, according to a news release from the governor's office. The state also used a consistent application process to determine the needs of the rural school districts, many of which did not receive a bus during the first four waves of funding.
“Investing in our K-12 schools remains a top priority,” Ducey said. “Arizona found an innovative way to use these settlement funds to invest in public education. The new school buses have gone a long way to benefit Arizona schools, especially those in low-income districts and rural communities. And with this last round of funding, every rural county in Arizona received at least one bus. Rural schools can use freed up funds to meet other capital needs.”
As SBF previously reported, Ducey released the school bus replacement plan in June. The plan included the purchase of an estimated 280 school buses using VW settlement funds to low-income communities across the state.
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 school buses, totaling $8.4 million.
In the third and fourth waves of funding, as SBF reported in February, $7.5 million was awarded to 35 school districts and charter schools for the purchase of 67 new school buses.
To date, Arizona has allocated a total of $36.8 million for the purchase of 330 school buses at 141 school districts and charter schools.
To view a list of the latest funding recipients, go here.
For more information on the plan, go here.
More Management

Changing Lanes: AMF Bruns, Pro-Vision, CALSTART, HopSkipDrive, & Kooner
Check out who's been hired, promoted, and appointed to leadership positions at various school transportation industry suppliers and nonprofits.
Read More →
NCST Announces 18th Congress Event Dates, New Committees
The National Congress on School Transportation moves to St. Louis in May 2029, convening delegates and industry representatives to discuss new best practice recommendations. Now, the new committee chairs have been named.
Read More →
Key Moments from the 2026 NSTA Annual Meeting in the Mile High City
From federal policy updates and OEM presentations to speed networking and industry awards, see photos and highlights from the contractor association’s summer conference in Denver.
Read More →
HopSkipDrive Launches Spanish-Language App Update, Plans Additional Language Support
The update aims to improve communication with multilingual families by offering ride tracking, notifications, and support in Spanish, with more languages planned for the 2026-2027 school year.
Read More →
Where the Yellow Bus Takes Us: School Bus Fleet's 2026 Photo of the Year Winners
See the winning photos from School Bus Fleet's 2026 Photo of the Year contest, featuring stunning school bus images from across the U.S., from scenic landscapes to everyday moments.
Read More →
Why Emotional Intelligence Matters in Student Transportation
Learn the five key elements that bus drivers and transportation directors can use to stay calm in any situation.
Read More →
2026 Back-To-School Readiness Report
Staffing gaps, flat budgets, and the distance between “mostly prepared” and ready for the 2026-2027 school year.
Read More →
National School Transportation Association Presents 2026 Award Winners
Twenty-one individuals and contractor companies were recognized for excellence in student transportation at NSTA's annual meeting and convention in Denver.
Read More →
School Transportation Data Is Only as Powerful as the Story It Tells
Leaders say turning operational metrics into student-centered narratives can help districts justify investments and improve service.
Read More →
Photos: NYAPT Celebrates 50 Years at 2026 Conference & Trade Show
See highlights from NYAPT's 50th anniversary conference in Saratoga Springs, featuring educational sessions, awards, a trade show, networking, and more.
Read More →

