South Carolina Approves $24.5M VW Funds for School, Transit Buses
The state’s second round of Volkswagen settlement funding will be used to purchase 235 new propane school buses and three electric transit buses.

South Carolina will use $24.54 million of its Volkswagen settlement funds to purchase 235 new propane school buses and three electric transit buses. Shown here is one of the state’s Thomas Built Buses Saf-T-Liner C2 propane school buses.
Photo courtesy South Carolina Department of Education
South Carolina has announced that it will allocate a total of $24.54 million in the state's second round of Volkswagen (VW) settlement funding for new school and transit buses.
Gov. Henry McMaster, along with South Carolina Superintendent of Education Molly Spearman and South Carolina Department of Insurance (SCDOI) Director Ray Farmer, made the announcement on Tuesday to distribute VW funds for 235 new, propane-fueled school buses for 11 school districts and three electric transit buses to be used in Charleston and Florence, according to a news release from McMaster’s office.
Representatives from the Berkeley-Charleston-Dorchester Council of Governments and the Pee Dee Regional Transportation Authority (PDRTA), which will receive funding for the electric transit buses, were reportedly also in attendance.
“[This] marks an important day for our state,” McMaster said. “Director Farmer and his team accepted an immense challenge in determining how these funds should be invested to benefit as many South Carolinians as possible, and they have exceeded expectations. Because of [this] announcement, those in our state who rely on public transit and the children who rely on our school buses will be safer.”
“This announcement shows South Carolina is fully committed to providing the safest, most efficient, and environmentally friendly school buses in the nation,” Spearman added. “Not only will these new propane buses help ensure over 300,000 bus riders get to and from school safely and on time, it will save taxpayers millions of dollars while drastically reducing emissions.”
As School Bus Fleetpreviously reported, McMaster appointed the SCDOI as the lead agency for administering the state’s $34 million share of VW funds in 2017. Two years later, in 2019, McMaster announced that $9.33 million would be invested to purchase 78 new propane school buses and three transit buses under the state’s first round of VW funds.
For the state’s second round of funding, the SCDOI partially funded three of 11 total applications, according to McMaster’s office. The award recipients include:
1. South Carolina Department of Education (SCDOE)
$23,635,830 for 235 new propane school buses.
The SCDOE has committed $87,400 to building two new propane fueling stations to expand the state’s propane school bus fleet.
School districts expected to receive propane school buses include Aiken County Public School District, Beaufort County School District, Berkeley County School District, Charleston County School District, Dorchester School District Two, Greenville County Schools, Horry County Schools, Lexington County School District One, Richland County School District One, Richland School District Two, and York County School District Four.
2. Berkeley-Charleston-Dorchester Council of Governments
$608,000 for one electric transit bus for Charleston Area Regional Transportation Authority (CARTA).
The council has committed 20% of the funds as a local match.
The council will purchase an electric bus manufactured by Proterra in South Carolina.
The council will leverage existing charging infrastructure for charging the bus.
3. Pee Dee Regional Transportation Authority
$295,500 for two electric transit buses and charging infrastructure.
PDRTA will apply for federal funds to cover 85% of the costs of the buses and charging infrastructure.
These will be the first electric transit buses for the PDRTA.
Learn more about South Carolina’s VW funds.
Watch McMaster's press conference announcing the state's second round of VW funding below.
More Alternative Fuels

Alt-Fuel Moves: Fleets Power Up Beyond the Bus
See how districts are pairing electric buses with charging, solar, and V2G technology to cut costs, boost resilience, and unlock new fleet value.
Read More →
What the EPA’s Updated Clean School Bus Program Means for Fleet Electrification in 2026 and Beyond
A guide to the EPA’s evolving school bus grants, including how the Trump administration changed funding priorities and how school districts can prepare for future bus purchases.
Read More →A Solution Helping School Buses Charge Without Major Infrastructure Upgrades
Power Innovations International dishes on its EV charging technology designed to reduce infrastructure barriers, improve reliability, and support V2G applications for school bus fleets.
Read More →
New Eagle Launches All-in-One EV Control Platform
The new OpenECU NX3 platform integrates charging and vehicle controls into a single platform, with support for megawatt charging and vehicle-to-grid technologies.
Read More →
GreenPower Unveils New Heating Solution for Type A Bus
The all-electric bus manufacturer's new product aims to eliminate cold-cabin issues on its Nano BEAST zero-emission school buses operating in cold climates.
Read More →
Alt-Fuel Moves: Fleets Plug In for the Long Haul
School districts across the U.S. are moving electric school bus plans into operation, with new fleet deployments, charging infrastructure, and long-term electrification partnerships taking shape.
Read More →The Achilles Heel of School Bus Electrification: BetterFleet’s Take
BetterFleet’s managing partner discusses AI-powered EV fleet management, vehicle-to-grid challenges, and the real challenges in bus electrification today, from ACT Expo.
Read More →
You're On Your Own to Pick a Drivetrain [Op-Ed]
After years of federal pressure toward electric school buses, districts are suddenly being told to choose their own path. Let’s explore the risks, realities, and politics behind school bus drivetrain decisions.
Read More →Wattson: Thomas Built’s Largest EV School Bus Yet
Check in with Mark Childers on the new Wattson Type D electric school bus, featuring faster charging, expanded passenger capacity, and advanced safety technology.
Read More →The New Era of Electric School Buses: V2G, Bidirectional Chargers & More
The Mobility House discusses AI-powered charging, vehicle-to-grid technology, smart energy management, and the next phase of school bus electrification.
Read More →
