MURPHY ADMINISTRATION ANNOUNCES $20 MILLION IN ELECTRIC SCHOOL BUS AND CHARGING STATION GRANTS TO MARK DRIVE ELECTRIC MONTH
September 17, 2025, 2:04 pm | in
MURPHY ADMINISTRATION ANNOUNCES $20 MILLION IN ELECTRIC SCHOOL BUS AND CHARGING STATION GRANTS TO MARK DRIVE ELECTRIC MONTH
(25/P40) TRENTON – In celebration of National Drive Electric Month, the New Jersey Department of Environmental Protection (NJDEP) today announced the availability of $20 million in grants from two grant programs to fund the purchases of electric school buses and installation of public charging stations.
Running from Sept. 12 through Oct. 12, National Drive Electric Month is a nationwide celebration to raise awareness of the many benefits of all-electric and plug-in hybrid cars, trucks, motorcycles, and more.
The DEP’s Electric School Bus Grant Program will provide $10 million in grants to school districts and contractors that provide bus services to school districts as part of the state’s effort to replace dirty diesel buses with clean electric buses. Diesel buses produce emissions that are especially harmful to children.
The DEP’s EV Charging Grant Program will provide an additional $10 million in grants to install charging stations near multi-unit housing and transit stations as the Murphy Administration continues to work to make electric vehicle use more convenient and attractive in New Jersey. The state now boasts nearly 250,000 EVs on the road (making up 14 percent of new vehicle registrations), demonstrating increasing confidence in EVs and the availability of charging infrastructure.
“By making this funding available, we further our commitment to lowering emissions and powering our public transportation with clean vehicles,” said Governor Phil Murphy. “These electric buses are long-term investments in the health and safety of New Jersey’s children. We are also dedicated to building out our charging infrastructure as more drivers go green.”
“National Drive Electric Month is the perfect time to highlight our commitment to a cleaner, more sustainable future," said Environmental Protection Commissioner Shawn M. LaTourette. "Through these grant programs, we are taking significant steps to reduce our carbon footprint, improve air quality, and promote the use of electric vehicles across New Jersey.”
In total, the Murphy Administration has awarded over half a billion dollars to EV projects and initiatives to further the promise of clean transportation statewide, from cars to buses, airport and port equipment, to electric vehicle charging stagings and eMobility projects that have increased access to clean shared transportation for overburdened communities. The Murphy Administration is also a leader in helping to expand charging infrastructure along the Interstate 95 corridor from Connecticut to Maryland and has produced a suite of reforms and best practices to help drive EV policy more broadly.
“The Sierra Club is pleased to see New Jersey continue to be a national leader when it comes to electric vehicle infrastructure and electrifying our school bus fleets,” said Anjuli Ramos-Busot, Director of the Sierra Club’s New Jersey chapter. “These historic investments are not only an investment in our children’s future, but in our clean air, in cleaner communities, and in reducing our carbon footprint overall. We thank Governor Murphy and the NJDEP for its commitment to making clean transportation more accessible for all across the state.”
Funding for the Electric School Bus Grant Fund comes from the New Jersey Board of Public Utilities’ Clean Energy Fund. Funding for the EV Charging Grant Program comes from a combination of funding from Regional Greenhouse Gas Initiative (RGGI) auction proceeds, federal investments, and environmental litigation settlement funds secured by the State.
Electric School Bus Grant Program in Detail
Recognizing the environmental and health benefits of transitioning to electric school buses, the NJDEP is providing approximately $10 million to replace diesel school buses with battery-electric school buses. To date, the DEP has awarded more than $55 million for the purchase of 169 school buses.
School districts that own their buses and school bus contractors that provide bus services to schools are eligible to apply. The latter must apply in conjunction with a specified school or school district. Additional funding is being dedicated to “eco-hub” projects that will pilot vehicle-to-building technology at selected schools throughout the state.
The program will provide up to $350,000 per school bus and charging station used to serve overburdened districts. For applicants not serving an overburdened school district, up to $320,000 is available per school bus and charging station. These amounts are designed to reflect the approximate incremental cost between a new electric bus and a new diesel bus plus the cost of a charging station.
All grantees can also take advantage of free upfront technical support through the New Jersey Fleet Advisor program with no separate application needed. The Fleet Advisor service will provide grantees with a personalized fleet electrification roadmap, including an on-site electric infrastructure assessment, vehicle options, cost projections, and other recommendations to ensure projects are successful.
This competitive grant solicitation will award up to $100,000 for each publicly accessible fast charging port located near multi-unit dwellings or transit stations. These incentives, from DEP’s It Pay$ to Plug In grant program, can be combined with utility incentives.
Increasing the number of public charging stations makes it more convenient for EV owners to charge their vehicles, reduces charging times, and enhances the EV ownership experience.
As of July 2025, the state has over 1,700 fast charging ports, increasing at a rate of 540 per year, and over 3,300 Level 2 charging ports, increasing at a rate of 682 per year. Since its inception, the It Pay$ to Plug In grant program has paid $11 million for 60 fast charging ports and 1,705 Level 2 charging ports throughout New Jersey.
Applications for fast-charging electric vehicle stations through It Pay$ to Plug In will be accepted until October 25, 2025. More information is available at dep.nj.gov/drivegreen/dcfcsolicitation/