School Bus Fleet
MenuMENU
SearchSEARCH

Michigan Tabs 20% of VW Funds for New School Buses

Nearly $13 million of the state’s $64.8 million in mitigation plan funds will go toward replacing aging diesel school buses with new diesel-powered, electric, or other alt-fuel buses.

Nicole Schlosser
Nicole SchlosserFormer Executive Editor
November 13, 2018
Michigan Tabs 20% of VW Funds for New School Buses

Nearly $13 million of Michigan’s $64.8 million in Volkswagen settlement funds will go toward replacing aging diesel school buses with new diesel-powered, electric, or other alternative-fueled buses. File photo

2 min to read


Nearly $13 million of Michigan’s $64.8 million in Volkswagen settlement funds will go toward replacing aging diesel school buses with new diesel-powered, electric, or other alternative-fueled buses. File photo

LANSING, Mich. — State officials are committing one-fifth of Michigan’s Volkswagen (VW) settlement funds to electric and new diesel school buses.

Of the $64.8 million that the state is receiving in mitigation plan funds, nearly $13 million ($12,961,402.93) will go toward replacing aging diesel school buses with new diesel-powered, electric, or other alternative-fueled buses, according to the Michigan Volkswagen Settlement Beneficiary Mitigation Plan, released by the Michigan Department of Environmental Quality (MDEQ) on Oct. 29.

Gov. Rick Snyder designated the MDEQ as the lead agency to administer Michigan’s allocation of the trust.

The plan also states that, for non-government-owned school buses, funding recipients under contract with a school district can receive up to 25% of the cost of a new diesel or alternative-fueled school bus, and up to 50% of the cost of an electric school bus and charging station.

Funding amounts for government owned and privately-owned school buses under contract with a public school district will be up to 25% of the cost of a new diesel school bus, up to 40% of the cost of an alternative-fuel school bus, and up to 70% of the cost of a new electric school bus and charging station.

Up to $3 million will be allocated for electric school buses and charging stations. A maximum amount per bus and charging station may be applied.

Michigan’s Diesel Emissions Reduction Act program will continue to use state and federal funds instead of tapping state trust agreement funds to support projects, according to the mitigation plan.

The first funding opportunity is expected to occur in late 2018 and will focus on school bus replacement, according to a news release from the MDEQ. More funding opportunities will be available beginning in mid-2019 and will target all remaining project categories. Funding will continue in phases until the funds are expended. Michigan has up to 10 years from Oct. 2, 2017 to spend its allocation of the funds.

Eligible applicants include local, state, and federal government agencies; school districts; transit authorities; private businesses; metropolitan planning organizations; nonprofit organizations; and tribes.

The VW Environmental Mitigation Trust is providing states with a total of $2.9 billion for projects that reduce nitrogen oxide (NOx) emissions from large vehicles.

For more information on the plan for the settlement funds, go here.

More Management

Students with backpacks exit school buses and walk toward a school building as transportation staff assist with afternoon drop-off.
Managementby News/Media ReleaseAugust 19, 2026

How a New York District Cut Nearly $1M in Transportation Costs While Expanding Bus Access

A data-driven overhaul with BusRight reduced Poughkeepsie City School District's planned routes from 26 to 17 while extending school bus service to about 1,200 additional students.

Read More →
A female teacher sitting in front of elementary school classroom, giving a lesson to several students.
SponsoredAugust 17, 2026

Budgets Down, Enrollment Shifting: What the Data Says Districts Should Watch

School transportation departments face two converging challenges this year: tightening budgets and shifting enrollment. Most districts still address these issues separately, but the assumption that either trend will simplify operations is proving incorrect.

Read More →
BusRight-branded image showing students exiting a yellow school bus, with the Inc. 5000 logo recognizing America’s fastest-growing private companies.
Managementby Amanda HuggettAugust 17, 2026

These 8 School Transportation Companies Made the 2026 Inc. 5000 List

Find out which school transportation contractors, technology providers, and suppliers ranked among America’s fastest-growing private companies.

Read More →
Ad Loading...
School Bus Fleet’s The Route podcast thumbnail featuring Kellie Doyle Bailey and host Amanda Huggett with the text “Emotional Intelligence and School Bus Safety.”
ManagementAugust 14, 2026

The Link Between Emotional Intelligence and School Bus Safety

How can emotional intelligence help transportation pros navigate stress, manage change, and build stronger relationships? Listen to find out.

Read More →
School Bus Fleet’s The Route podcast thumbnail featuring Kellie Doyle Bailey and host Amanda Huggett with the text “Emotional Intelligence and School Bus Safety.”
Sponsoredby Amanda HuggettAugust 14, 2026

What Emotional Intelligence Has to Do With School Bus Safety

In this video, discover how emotional intelligence can help transportation leaders and drivers navigate stress, manage change, and build stronger relationships. The Route is sponsored by IC Bus.

Read More →
School transportation professional holding a two-way radio in front of a row of school buses, with PositionPTT radio and communication accessories pictured alongside him.
Managementby Amanda HuggettAugust 13, 2026

Beyond Two-Way Radios: School Bus Communications Evolve With Push-to-Talk Over Cellular

PRYME Radio and PositionPTT join forces to advance hands-free radio use and reduce distracted driving. See how PoC compares with traditional radios on range, cost, safety, and connectivity.

Read More →
Ad Loading...
An orange and white graphic with HopSkipDrive's logo and text reading "Districts Adjusts to Persistent Driver Shortages."
Managementby Elora HaynesAugust 12, 2026

Have School Districts Adapted to Bus Driver Shortages or Simply Accepted Less Service?

According to a recent report from HopSkipDrive, many districts appear to have recalibrated what "normal" transportation service looks like.

Read More →
A blue and white graphic with text reading "The Ripple Effect of a Reliable Ride."
Managementby Elora HaynesAugust 12, 2026

Reliable Transportation Linked to Better Student Outcomes, New EverDriven Study Finds

See why new research suggests transportation consistency improves student outcomes while influencing attendance, funding, IEP compliance, and family trust.

Read More →
A close-up side view of a yellow Switzer-CARTY school bus parked in a bus yard, with the contractor's name displayed on the side panel and additional school buses visible in the background.
Managementby News/Media ReleaseAugust 7, 2026

Switzer-CARTY Enters the U.S. with New Acquisition

The Canadian contractor’s acquisition of Minnesota-based Agnes Corporation marks its first cross-border expansion into the United States and adds 350 vehicles.

Read More →
Ad Loading...
Students wearing backpacks line up to board a yellow school bus, each holding an NFC-enabled student ID card to scan as they enter. The image illustrates student ridership tracking technology that records boarding activity in real time.
Managementby News/Media ReleaseAugust 6, 2026

BusRight Adds New Rider Tracking Technology

Safety Pass is an NFC-based student ridership tracking solution that provides real-time boarding and drop-off data to improve school bus safety and family communication.

Read More →