CONCORD, N.C. — School transportation leaders across the country are bracing for continued financial strain as flat federal funding, shifting state policies and rising operational costs converge to create what an industry expert described as a “fiscal cliff.”

During the first day of the STN EXPO East conference, Tim Ammon, owner of Ammon Consulting Group and a longtime industry insider, warned that school districts are entering a period where funding uncertainty and reductions are colliding with increasing expenses, which will impact transportation departments.

“Flatline funding associated with increasing cost is, in effect, a cut,” Ammon said, noting that federal education appropriations remaining steady year-over-year fail to keep pace with inflation and rising service demands.

While federal funding accounts for roughly 10 percent to 15 percent of school district budgets, the remainder comes from state and local sources — both of which are facing growing funding uncertainty. Meanwhile, transportation makes up around 10 percent or less of the overall district budget. Declining income tax revenues at the state level and widespread property tax reform efforts are expected to reduce or constrain funding streams that districts rely on.

COVIDE-era Funding Runs Out

At the same time, pandemic-era relief like federal Elementary and Secondary School Emergency Relief (ESSER) funds are expiring, removing a critical financial cushion many districts used for staffing and operations. Ammon emphasized that the combined effect is forcing school systems to reconsider how they deliver services.

“What we will be thinking about … is how do we have to manage services to reflect a set of cost increases that are outstripping the available funding that we’re getting?” he asked.

Transportation departments often operating on tight margins are particularly vulnerable. Rising fuel costs are also adding new volatility, with some districts already reporting budget concerns tied to the War on Iran’s impact on oil prices.

Compounding the issue are demographic trends. Declining student enrollment in many regions is reducing funding tied to the number of students while not necessarily lowering transportation costs. In fact, data Ammon presented showed that in districts with declining enrollment, 83 percent still experienced rising transportation expenses.

“Your job doesn’t get easier because there are fewer kids. It gets harder,” Ammon said, pointing to longer routes, dispersed populations and unchanged service requirements.

Policy changes are also reshaping the funding landscape. The expansion of school choice programs and private school vouchers means funding increasingly follows students out of traditional public school systems. This reduces district revenue while leaving many transportation obligations intact.

Additionally, mandated services such as special education transportation and McKinney-Vento services for homeless students continue to grow, further straining limited budgets.

Ammon described the current environment as a convergence of multiple pressures: Funding reductions, policy shifts and operational changes. Together, these factors are making long-term planning more difficult and increasing the likelihood of significant service adjustments.

Districts may soon face tough decisions, including reducing routes, consolidating stops, adjusting bell times or even eliminating buses. In more severe cases, school closures and major system redesigns could follow.

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Related: Industry Veteran to Address Student Transportation Funding Uncertainty at STN EXPO East

“I hate to be the bearer of bad tidings, but it’s coming,” Ammon said. “Somebody [will be] coming down the hall and saying … ‘I need you to cut 10 buses next year because we’re going to get less funding.’”

Explore Alternative Funding

To prepare, transportation leaders are encouraged to better understand their funding sources, track enrollment trends and collaborate more closely with district planners. He also suggested exploring alternative service models and reevaluating traditional routing strategies to improve efficiency.

Ultimately, the message is clear: School transportation is entering a period of structural change. Those who proactively adapt to evolving financial realities may be better positioned to maintain service levels, while others risk being forced into reactive, and potentially disruptive, decisions.

As Ammon noted, the challenges are not isolated to specific regions or district sizes but represent a broader, systemic issue facing public education nationwide.

Article written with the assistance of AI.

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The U.S. Environmental Protection Agency (EPA) held the first of three webinars to share information on the proposed expansion of eligible fuels under the  revamped Clean School Bus Program (CSBP) and to solicit comment from student transportation stakeholders.

The EPA webinar on Tuesday highlighted last week’s Request for Information, which seeks public comment on the feasibility of adding biodiesel and renewable diesel as fundable fuels. A source familiar with the program told School Transportation News following EPA’s announcement of the RFI that the inclusion of liquefied natural gas and hydrogen, which are not currently available options for school buses, satisfy language contained in the 2021 Infrastructure Investment and Jobs Act that created the CSBP.

EPA did not provide a date for the unveiling of the next CSBP funding round, but representatives indicated an announcement would be made following the public comment period, which remains open until early April.

Several webinar participants commented during the webinar on stated EPA focal points of the new funding round. One industry professional recommended that EPA limit the number of entities that are considered to be third parties allowed to work with school districts to secure grant funding. Another participant pointed out that regulatory language can confuse the terms sales order and sales receipt, as the verbiage can result in a reimbursement to a a “poor” school district that instead needs the funds up front.

A representative of school bus dealer noted that some school districts are unable to apply for Clean School Bus Program funds because they don’t have 2010 or older model-year school buses to retire, which the regulatory language calls for.

Other participants championed electric school buses in light of EPA’s new focus on funding more biofuel blends, renewable diesel and propane that increase tailpipe emissions, even if nominally. Another participant said propane makes the most sense for his district’s fleet, citing a concern for the cost of battery replacements in electric school buses.

Wednesday’s webinar is designed to give school districts and bus companies the next steps in finalizing clean school bus projects funded by the 2023 rebate program with an overview of the close out form.

A March 10 webinar will share additional information on the 2023 project close outs EPA said is necessary to complete programs “effectively and efficiently while also ensuring they meet the conditions of their funding opportunity.”

Specifically, EPA said it is targeting potential waste, fraud and abuse by sharing guidance school districts and bus companies should use as they wrap up their projects.

Related: EPA ‘Revamping’ Clean School Bus Program
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Related: Funding Among Potential Impacts of U.S. Education Department Dismantling on School Transportation

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Liberal members of the Wisconsin Supreme Court said they were “shocked” at the ramifications of the right-wing Wisconsin Institute for Law & Liberty’s arguments against a grant program meant to help prevent minority students from dropping out of technical college. 

The Court on Wednesday held oral arguments in a case that began in a 2021 lawsuit in Jefferson County Circuit Court. The suit alleges that the state’s Minority Undergraduate Retention Grant program, administered by the Higher Education Aids Board, unlawfully discriminates based on race. 

The program, established in the 1980s, provides small-dollar grants to Black, Native American and Hispanic students, as well as Southeast Asians who came to the U.S. from Laos, Cambodia or Vietnam after 1975. On average, members of these groups drop out of school or fail to graduate at substantially higher rates than their peers, the state has argued. 

The program has been a frequent target of Wisconsin Republicans in recent years — especially after the U.S. Supreme Court’s 2023 decision in Students for Fair Admissions v. Harvard, which ended the legality of affirmative action in college admissions. 

The Wisconsin Examiner previously reported that money through the program has largely been used to assist Black students at Milwaukee Area Technical College. 

In a decision last year, the 2nd District Court of Appeals sided with WILL and the taxpayers it is representing, declaring the program unconstitutional. Wisconsin Attorney General Josh Kaul appealed the decision and in November the Supreme Court agreed to hear the case. 

WILL attorney Luke Berg argued Wednesday that any program that targets specific racial groups is unconstitutional — regardless of whether those groups face statistical disparities. 

“I think the worst form of discrimination is discrimination under the law, when the law treats individuals differently based on their race,” Berg said. “I’m not asking the Court to ignore that there are disparities in statistics, and I think we should all be concerned about that. But there are poor white students, there are poor Asian students, there are poor Afghani students, there are poor Palestinian students, there are poor Egyptian students.” 

“It cannot have explicit race discrimination under the law,” he continued later. “It can target racially neutral criteria like poverty, and it can solve those disparities indirectly. Give the scholarship to every student that needs it. If there are more poor Black students, more of them will get that scholarship.”

Several of the Court’s left-leaning justices pushed back on Berg’s comments, questioning how ignoring race-based statistical gaps achieves the 14th Amendment’s promise of equal protection. Justice Jill Karofsky told him, “your argument basically asks us to stick our heads in the sand.” 

Justice Rebecca Dallet noted that in Wisconsin, Black mothers and babies face much higher rates of health issues and under Berg’s legal construction, the state couldn’t do anything to specifically target that problem. 

“If the purpose is to help Black babies live who are not living at the same rate as white babies. How would they do that without mentioning the word Black?” Dallet said.

Berg responded that the state could pass a program that applies to “all babies” because “there are some white babies in the world who might need that program, too, and so you would make the program available to all.” 

“That is shocking, and if that’s what our U.S. Supreme Court wants to say, that is shocking, but I don’t think that that’s what they said in SFFA,” Dallet responded. 

Charlotte Gibson, the Department of Justice attorney arguing on behalf of the HEAB, called the appeals court’s decision “radical” saying that it went further than the U.S. Supreme Court’s ruling to end affirmative action. 

“The court of appeals decision was radical,” Gibson said. “I’m not aware of any court in the country that has come up with a ban this categorical that would impact things like medical research that’s targeted a particular racial group that’s suffering from specific health outcomes. But … that’s exactly what the rule of law they’re looking for would do.”

Berg opened his arguments to the Court saying he believed the justices should dismiss the case and accept the appeals court’s decision. He argued that if the Court sides with the state, an appeal will immediately be filed in federal court. 

“If this court reverses, either on standing or the merits, the next thing that will happen is someone will file this case in federal court, us or somebody else,” Berg said. “It may be a race to the courthouse, because this is, like I said, the lowest of low hanging fruit in terms of federal claims … So what will happen is the taxpayers will pay for this court’s time. The taxpayers will pay for their time to litigate the case again for three to four years. The taxpayers will pay the time [of] federal district court counsel.”

Justices Susan Crawford, Janet Protasiewicz and Dallet objected, saying they took his comments as a “threat.” 

“That is such an inappropriate argument. It is so inappropriate and disrespectful to the state and their program that they are here to argue in front of us, it’s basically a threat to us,” Dallet said.

All schools and districts that applied for funding for eligible safety features ranging from seatbelts to collision avoidance to additional lighting through the $10 million Ohio School Bus Safety Grant received an award.

An Ohio Department of Education spokesperson confirmed that it received 371 applications from schools, districts and county boards of developmental disabilities for the School Bus Safety Grant. Of those applications, 56 requested funds for “Occupant restraining devices that conform to the school bus seat belt requirements of 49 C.F.R. 571.”

The other authorized safety features are external school bus cameras, fully eliminated stop arms, crossing arms, illuminated school bus signs, lane departure warning systems, collision avoidance systems, and electronic stability control.

The school bus safety grant program was created in response to recommendations made by the Ohio School Bus Safety Working Group, which Gov. Mike DeWine convened to review all aspects of student transportation, following an August 2024 school bus crash that resulted in a student fatality.

Among its 17 recommendations made in January 2024, which did not include the use of lap/shoulder seatbelts — a main reason Gov. DeWine called together the working group — were strategies for improving bus safety features, driver training and emergency response.

Safety rant funding may be used for the repair, replacement or addition of the eight authorized safety features on school buses in active service or for safety enhancements on new school bus purchases.

Related: Ohio School Bus Grant Program Launches, $10M Available
Related: Ohio School Bus Safety Working Group to Investigate Seatbelts Following Fatality
Related: Ohio School Bus Safety Recommendations Call for Technology Funding, No Seatbelt Mandate
Related: Brother and Sister Help Save School Bus Driver During Medical Emergency in Ohio

Indian Hill EVSD in Ohio, applied for the safety grant. Diane Spurlock, transportation director, said they asked for collision avoidance systems and lane departure warning system.

“The program we selected is an AI camera that can notify the driver if either of the instances occurs while they are on the road,” she said. “The main reason is that we recently had an incident happen with a driver where this could have kept it from happening thus ensuring a safer drive. A secondary reason is that our current cameras are getting outdated quickly and I hope this opens the door to purchase more products from this company.”

Additionally, Indian Hill applied for the ground wash lights “because our district does not have street lights and some streets are very narrow. We have added the LED lights near the back tires but believe the ground wash lights will be especially helpful for turnarounds,” she continued.

Gov. DeWine, the Ohio Department of Education and Workforce Director Stephen D. Dackin announced via a press release that, “the grants will help ensure safer travel for Ohio students through safety upgrades to existing buses and the addition of advanced safety features on new buses.”

“Whether students are in the classroom or on the school bus, we owe it to parents and families to do everything we can to keep them safe,” said DeWine. “We’re raising the bar for student safety on Ohio’s buses, and these grant awards demonstrate our dedication to making school transportation safer.”

Dackin added, “Student safety is our top priority, and Ohio is investing in critical safety improvements to equip school buses with proven technology that keeps children safe.”

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The MIT Sailing Pavilion hosted an altogether different marine vessel recently: a prototype of a solar electric boat developed by James Worden ’89, the founder of the MIT Solar Electric Vehicle Team (SEVT). Worden visited the pavilion on a sizzling, sunny day in late July to offer students from the SEVT, the MIT Edgerton Center, MIT Sea Grant, and the broader community an inside look at the Anita, named for his late wife.

Worden’s fascination with solar power began at age 10, when he picked up a solar chip at a “hippy-like” conference in his hometown of Arlington, Massachusetts. “My eyes just lit up,” he says. He built his first solar electric vehicle in high school, fashioned out of cardboard and wood (taking first place at the 1984 Massachusetts Science Fair), and continued his journey at MIT, founding SEVT in 1986. It was through SEVT that he met his wife and lifelong business partner, Anita Rajan Worden ’90. Together, they founded two companies in the solar electric and hybrid vehicles space, and in 2022 launched a solar electric boat company.

On the Charles River, Worden took visitors for short rides on Anita, including a group of current SEVT students who peppered him with questions. The 20-foot pontoon boat, just 12 feet wide and 7 feet tall, is made of carbon fiber composites, single crystalline solar photovoltaic cells, and lithium iron phosphate battery cells. Ultimately, Worden envisions the prototype could have applications as mini-ferry boats and water taxis.

With warmth and humor, he drew parallels between the boat’s components and mechanics and those of the solar cars the students are building. “It’s fun! If you think about all the stuff you guys are doing, it’s all the same stuff,” he told them, “optimizing all the different systems and making them work.” He also explained the design considerations unique to boating applications, like refining the hull shape for efficiency and maneuverability in variable water and wind conditions, and the critical importance of protecting wiring and controls from open water and condensate.

“Seeing Anita in all its glory was super cool,” says Nicole Lin, vice captain of SEVT. “When I first saw it, I could immediately map the different parts of the solar car to its marine counterparts, which was astonishing to see how far I’ve come as an engineer with SEVT. James also explained the boat using solar car terms, as he drew on his experience with solar cars for his solar boats. It blew my mind to see the engineering we learned with SEVT in action.”

Over the years, the Wordens have been avid supporters of SEVT and the Edgerton Center, so the visit was, in part, a way to pay it forward to MIT. “There’s a lot of connections,” he says. He’s still awed by the fact that Harold “Doc” Edgerton, upon learning about his interest in building solar cars, carved out a lab space for him to use in Building 20 — as a first-year student. And a few years ago, as Worden became interested in marine vessels, he tapped Sea Grant Education Administrator Drew Bennett for a 90-minute whiteboard lecture, “MIT fire-hose style,” on hydrodynamics. “It was awesome!” he says.

Climate anxiety affects nearly half of young people aged 16-25. Students like second-year Rachel Mohammed find hope and inspiration through her involvement in innovative climate solutions, working alongside peers who share her determination. “I’ve met so many people at MIT who are dedicated to finding climate solutions in ways that I had never imagined, dreamed of, or heard of. That is what keeps me going, and I’m doing my part,” she says.

Hydrogen-fueled engines

Hydrogen offers the potential for zero or near-zero emissions, with the ability to reduce greenhouse gases and pollution by 29 percent. However, the hydrogen industry faces many challenges related to storage solutions and costs.

Mohammed leads the hydrogen team on MIT’s Electric Vehicle Team (EVT), which is dedicated to harnessing hydrogen power to build a cleaner, more sustainable future. EVT is one of several student-led build teams at the Edgerton Center focused on innovative climate solutions. Since its founding in 1992, the Edgerton Center has been a hub for MIT students to bring their ideas to life.

Hydrogen is mostly used in large vehicles like trucks and planes because it requires a lot of storage space. EVT is building their second iteration of a motorcycle based on what Mohammed calls a “goofy hypothesis” that you can use hydrogen to power a small vehicle. The team employs a hydrogen fuel cell system, which generates electricity by combining hydrogen with oxygen. However, the technology faces challenges, particularly in storage, which EVT is tackling with innovative designs for smaller vehicles.

Presenting at the 2024 World Hydrogen Summit reaffirmed Mohammed’s confidence in this project. “I often encounter skepticism, with people saying it’s not practical. Seeing others actively working on similar initiatives made me realize that we can do it too,” Mohammed says.

The team’s first successful track test last October allowed them to evaluate the real-world performance of their hydrogen-powered motorcycle, marking a crucial step in proving the feasibility and efficiency of their design.

MIT’s Sustainable Engine Team (SET), founded by junior Charles Yong, uses the combustion method to generate energy with hydrogen. This is a promising technology route for high-power-density applications, like aviation, but Yong believes it hasn’t received enough attention. Yong explains, “In the hydrogen power industry, startups choose fuel cell routes instead of combustion because gas turbine industry giants are 50 years ahead. However, these giants are moving very slowly toward hydrogen due to its not-yet-fully-developed infrastructure. Working under the Edgerton Center allows us to take risks and explore advanced tech directions to demonstrate that hydrogen combustion can be readily available.”

Both EVT and SET are publishing their research and providing detailed instructions for anyone interested in replicating their results.

In May, students in the first cohort of the Farm Foundation CAFE (Careers in Food and Agriculture Exploration) Student Workshop grew their career readiness skills and explored future options available in food and agriculture. Held May 20 to 21 at North Carolina A&T University Farm Pavilion in Greensboro, North Carolina, the program served 10 undergraduate students from three different 1890 land-grant institutions: North Carolina Agricultural and Technical State University, Southern University and A&M College, and Tennessee State University.

Over the course of two days, students explored career opportunities in agriculture, developed new skills for positioning themselves in the job market, expanded their networks, and left with a transformational experience and new tools to carry them into their future careers. The small group setting allowed for in-depth discussions with presenters from across the industry, such as John Deere, FMC, and National Wheat Growers. In addition, the group was able to visit the Syngenta Crop Protection North America Headquarters to learn more about their global operation.

See the 2024 CAFE program project report for further details on the program, including program elements, topics covered, and key results.

The CAFE workshop is a key part of a five-year project funded by the USDA National Institute of Food and Agriculture, specifically the SAPLINGS grant in partnership with North Carolina Agricultural and Technical State University (NC A&T).

The Farm Foundation project leads for this program are Martha King, vice president of programs and projects; Jenna Wicks, program manager; and Amanda L. Martin, director of development.  

We are incredibly grateful to everyone at NC A&T, along with the faculty, staff, and guest speakers who shared their expertise with our first CAFE cohort and made this program such a success.

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