This bill creates a major federal program to help schools replace their diesel school buses with electric ones. The Environmental Protection Agency will give out billions of dollars in grants and rebates to school districts, contractors, and other organizations that buy or lease zero-emission school buses and install charging equipment. The program prioritizes funding for schools serving low-income areas, rural communities, areas with poor air quality, and communities of color, recognizing that these areas often face the worst pollution from diesel buses.

To qualify for funding, manufacturers of electric school buses must commit to good jobs—promising fair wages, benefits, and training for workers who make these buses. They also have to commit to hiring people from underrepresented groups and communities that have historically faced barriers to employment. The EPA will track whether manufacturers keep these promises and can remove them from the approved list if they don't comply.

Schools that receive funding must ensure their workers are paid fairly and properly trained to operate and maintain the new electric buses. The bill also requires coordination with local power companies to make sure the electrical grid can handle charging all these buses. Additionally, the bill explores using school buses as backup power sources during emergencies—the buses could store energy and send it back to the grid or to school buildings when needed. The program is funded with $2 billion per year for 2025-2026 and $3 billion per year from 2027-2032, making this one of the largest investments in clean school transportation in U.S. history.