Electric School Bus Funding in New Mexico: Now Open
New Mexico school districts can now apply for state funding that can cover the full cost of electric school buses, charging infrastructure, and related project costs, making it easier to deploy or expand an electric fleet.
New Mexico’s Electric School Bus Grant Is Open
The New Mexico Public School Facilities Authority (PSFA) is accepting applications for its Electric School Bus Projects program, with FY27 application cycles running from May through August 2026. The program is built to support a complete transition from diesel to electric school buses, including charging equipment, staff training, and technical support.
Applications are reviewed and awarded in three funding cycles, giving districts multiple opportunities to apply and refine their proposals. Award notifications begin as early as August 2026, with agreements, procurement, and implementation following soon after so districts can move quickly from planning to deployment.
Buses awarded from the grant would not impact your current funding districts receive from the state for transportation.
What the Grant Can Fund
The PSFA program offers flexible funding that can cover all major components of an electric school bus project, not just the buses themselves. This comprehensive approach helps districts plan complete projects rather than piecing together funding for vehicles and infrastructure separately, supporting reliable operations from day one.
Program funds can support:
- Electric school bus purchases that meet state program requirements and replacement criteria
- Charging equipment, including chargers, pedestals, and related hardware needed for daily operations
- Charging installation and site readiness, such as design and engineering, on-site electrical upgrades, trenching, conduit, wiring, networking, and software
- Solar arrays dedicated exclusively to bus charging, helping districts manage long-term energy costs
- Training, safety procedures, and project management costs, when allowed by program guidance
Because the grant can support both vehicles and infrastructure, districts can design projects that are reliable and cost-effective over the long term, with the charging capacity, operational planning, and support needed to keep buses on the road every school day.
How This Eases the Transition to Electric
By funding both buses and the infrastructure needed to support them, the program removes many of the financial and operational barriers that have historically slowed fleet electrification.
States across the country are helping districts move to electric school buses by pairing vehicle funding with infrastructure support and planning tools. Electric school buses can reduce maintenance costs, avoid diesel fuel expenses, and deliver quieter, healthier rides for students, while charging investments help districts modernize depots and prepare for future fleet needs.
Because the program funds charging infrastructure alongside the buses, districts can deploy electric school buses with confidence that the supporting equipment is designed to meet their operational needs from day one.
These state funds can also be layered with federal opportunities, such as the EPA’s Clean School Bus Program and other clean heavy‑duty vehicle grants, to stretch dollars even further. When districts use grant funding to cover upfront capital costs, they can redirect operating savings toward classrooms, staffing, and student services.
Why Work with a Fleet Partner
Electrifying a school bus fleet requires careful planning around routes, charging schedules, utility coordination, and long-term fleet renewal—tasks that can strain already busy transportation and facilities teams. Highland Electric Fleets works with school districts nationwide to design and implement electric school bus projects that align funding, infrastructure, and operations.
Highland’s programs and resources emphasize full lifecycle support, from identifying grant opportunities and preparing applications to overseeing charger installation and optimizing day‑to‑day fleet performance. For many districts, partnering with an experienced provider helps avoid common pitfalls, shorten timelines, maximize fleet uptime, and ensure that grant‑funded projects deliver the reliability and savings they expect. Highland also provides ongoing fleet monitoring and operational support to help districts maintain dependable service throughout the life of the project.
What New Mexico Districts Should Do Now
New Mexico school districts have a time‑limited opportunity to secure state funding for buses, chargers, and related infrastructure. District leaders should begin by reviewing program guidance, confirming fleet needs, and outlining projects that can be implemented on the program’s 2026–2027 timeline.
From there, districts can work with internal teams and external partners to finalize project scopes, gather required documentation, and submit applications ahead of each cycle deadline. If you would like support evaluating your fleet, identifying funding opportunities, or planning charging infrastructure, Highland can help you navigate the process and build a cost‑effective path to an electric school bus future.
Get in touch with us at info@highlandfleets.com to get started.
