School Districts Across US Abandon Electric Buses for Diesel Models Amid Repair Challenges

School districts across the United States are reversing their early adoption of electric school buses and returning to diesel-powered models, as repair challenges and the bankruptcy of a leading manufacturer leave districts with fleets they can no longer maintain.

Widespread Shift Away From Electric School Buses

What was once hailed as a breakthrough in cleaner transportation for students is now turning into a cautionary tale about the risks of transitioning too quickly to new technologies without stable infrastructure in place. Dozens of districts that purchased or leased electric school buses, many supplied by Quebec-based Lion Electric, are struggling to keep fleets operational.

With the company’s bankruptcy eliminating key repair and warranty services, school officials say they are left with buses that cannot be repaired locally or economically. As a result, several districts are planning to revert to traditional diesel buses, which are widely considered more affordable and reliable despite environmental drawbacks.

Case Study: Michigan’s Homer Community School District

In Michigan, the Homer Community School District purchased seven electric buses manufactured by Lion Electric using $2.8 million in federal grants. The investment was part of a nationwide push to transition school transportation to electric vehicles, funded under the Clean School Bus Program, a $5 billion initiative launched in 2021 by the U.S. Environmental Protection Agency.

Superintendent Mike Leskowich explained that while the district intends to use the electric buses for as long as they remain functional, it will ultimately return to diesel buses. According to Leskowich, the operating costs of diesel are significantly lower than the ongoing maintenance needs of electric models, particularly now that spare parts and service providers have become scarce.

Louisiana District Confronts Similar Roadblocks

In Louisiana, a district that purchased 14 new Lion Electric buses is also grappling with challenges. Superintendent Charlie Butler reported that his schools have struggled for months to find qualified technicians to diagnose and repair vehicle malfunctions.

The lack of available service centers has left many of the electric buses parked for extended periods, undermining the expected long-term fuel and cost savings that motivated their purchase.

Collapse of Lion Electric

The troubles stem largely from the bankruptcy of Lion Electric, once considered a pioneer in the electric vehicle market. The company, which went public in June 2021 with a valuation of $4.7 billion, received more than $159 million in federal funding to produce 435 buses between 2022 and 2024.

Despite early enthusiasm and rapid growth, Lion Electric’s financial position deteriorated sharply. The company filed for bankruptcy protection earlier this year and sold off core assets for only $6 million, a dramatic collapse for a company once hailed as central to North America’s electric school bus revolution.

Since declaring bankruptcy, the company has shut down manufacturing operations, laid off most of its workforce, and stopped honoring warranties and purchase orders in the United States. This left districts empty-handed on existing contracts, including an unfulfilled $95 million delivery obligation tied to the Clean School Bus Program.

Federal Initiative Faces Setbacks

The Clean School Bus Program was designed to accelerate the adoption of electric school buses, reduce schoolchildren’s exposure to harmful diesel emissions, and support local governments in lowering their carbon footprint. The program aimed to deploy thousands of new zero-emission vehicles across the nation within a decade.

However, the collapse of one of its major beneficiaries has cast uncertainty on the program’s future. Some districts are questioning whether the initiative adequately accounted for long-term service and maintenance needs, as well as whether sufficient infrastructure was in place to support such an ambitious rollout.

EPA Investigation in Maine

In Winthrop, Maine, the Environmental Protection Agency is currently investigating numerous issues with four Lion buses delivered in late 2023. According to interim Superintendent Becky Foley, the vehicles have faced persistent mechanical and electrical problems since their arrival.

Officials have raised concerns that vehicles approved for purchase under federally funded initiatives might not have received adequate testing before delivery. The EPA has not provided a timeline for the completion of its investigation.

Historical Context of School Bus Innovation

The setback recalls earlier challenges faced by alternative fuel initiatives in school transportation. In the late 1990s and early 2000s, several districts experimented with propane- and compressed natural gas-powered buses as cleaner alternatives to diesel. While some of these fleets remain in service today, many districts abandoned them due to limited fueling infrastructure and higher maintenance costs.

Electric buses were seen as the next leap forward, building on rapid advances in battery technology and electric mobility. Yet, like earlier transitions, the rollout has been hindered by real-world obstacles, including infrastructure, repair networks, and long-term cost management.

Regional Comparisons: Mixed Results Across the US

Not all districts share the same experience with electric buses. Larger urban centers such as Los Angeles and New York City, where bus routes are shorter and charging infrastructure is better developed, have reported smoother integration. These cities also benefit from having dedicated in-house mechanics who receive specialized electric vehicle training.

In contrast, rural and suburban districts, where routes are longer and budgets tighter, report greater difficulties in sustaining electric fleets. The combination of higher upfront costs, limited charging access, and now a lack of manufacturer support has made diesel buses appear more practical.

Economic Impact on Districts and Families

The financial consequences of the stalled transition are significant. Districts that invested millions of dollars into electric fleets now face sunk costs, with vehicles sidelined due to repair issues.

For example:

• Federal grants that supported purchases often did not cover long-term maintenance.
• Diesel buses, though less environmentally friendly, offer predictable repair costs and fuel availability.
• Sudden downtime in electric fleets forces districts to rent or buy diesel buses on short notice, an expense that strains already tight budgets.

Indirectly, communities also feel the impact. In areas where buses sit idle, parents face delays, rerouting, or reduced transportation services, creating additional burdens for working families.

Expert Perspectives on Transition Risks

Travis Fisher, director of energy and environmental policy studies at the Cato Institute, stated that the collapse highlights the risks inherent in rapidly scaling new technologies. While EV advocates point to long-term benefits of electrification — from reduced emissions to lower life-cycle fuel costs — the Lion Electric case underscores the importance of ensuring reliability before widespread adoption.

Transportation analysts also note that a single company’s failure should not dictate the sector’s long-term outlook. Other electric school bus manufacturers continue to operate and expand in U.S. markets, though many districts may move more cautiously after the Lion bankruptcy.

Looking Ahead for Clean School Transportation

As the national discussion around decarbonizing transportation continues, school bus fleets remain a frontline test case. The benefits of reducing diesel exhaust exposure for millions of schoolchildren are compelling, but the current challenges demonstrate that successful implementation requires more than just upfront investment.

Experts say the future of clean school transportation may hinge on three key factors:

• Infrastructure Development: Expanded charging stations and repair networks to ensure vehicles stay operational.
• Industry Stability: Ensuring that chosen manufacturers have the financial capability to maintain warranties and support districts long-term.
• Technology Improvements: Advances in battery durability, charging times, and overall cost-effectiveness.

Until those elements align, many districts may pause investments in electric buses or opt for hybrid technologies as an interim solution.

Conclusion

The retreat from electric buses by multiple U.S. school districts underscores a fundamental tension in the nation’s broader clean energy shift — balancing ambitious environmental goals with the practical realities of cost, reliability, and infrastructure.

With one of the key suppliers now bankrupt and districts facing the consequences, the near-term momentum for electric school buses has slowed. Yet, as was the case with earlier fuel transitions, experts suggest this may represent a temporary setback rather than a permanent derailment of electrification efforts in student transportation.

For now, however, many schools are going back to diesel — a tried and tested option that, despite its environmental trade-offs, remains the most dependable choice for getting children to class every day.