NC Requests $40M Fuel Fund for School Buses
The state's Department of Public Instruction is asking lawmakers for emergency money to cover rising school diesel costs.
Updated on Nov. 4, 2026 in Secondary Education
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Should the state use public money to cover rising school bus fuel costs?
North Carolina's Department of Public Instruction has requested a $40 million school transportation fuel reserve fund from the General Assembly as diesel prices climb. Schools spent $17.1 million on diesel between Aug. 1 and Oct. 6, nearly double the $8.6 million spent in each of the past two years during the same period.
Why it matters
Diesel costs for schools are nearly twice what they have been in recent years, straining transportation budgets for districts across the state. The request comes as diesel prices have soared, which officials tie to the U.S. war against Iran.
Schools spent $17.1 million on diesel between Aug. 1 and Oct. 6, roughly double the $8.6 million spent in the same window in each of the past two years, based on state education agency expenditure records. Lawmakers have already allotted $3 per gallon for school diesel, and how the legislature will respond to the new request remains unresolved.
The players
North Carolina Department of Public Instruction
The state agency that oversees public K-12 education in North Carolina, including school transportation funding and the statewide diesel contract that gives public schools a cheaper rate.
North Carolina General Assembly
The state's bicameral legislature, based in Raleigh, which controls appropriations and would have to create the requested fuel reserve fund.
The details
The Department of Public Instruction will ask the General Assembly to create the reserve fund when it returns this month. The $40 million would cover excess fuel costs above $3 per gallon and be distributed to districts and charter schools based on need.
Timeline
Lawmakers provided extra fuel money during the 2023-24 school year as diesel prices rose.
Schools spent $17.1 million on diesel from Aug. 1 to Oct. 6, 2026.
The state gas tax holiday runs through the end of November 2026, but does not apply to schools.
State lawmakers are scheduled to reconvene the week of Nov. 16, 2026.
State lawmakers are scheduled to reconvene again the week of Nov. 30, 2026.
Big Picture
Like the extra fuel money North Carolina lawmakers provided during the 2023-24 school year, this request responds to a spike in diesel prices that is putting pressure on school transportation budgets. The current increase is roughly double the cost burden schools carried in recent years, suggesting the state's earlier stopgap may not be enough.
Families in North Carolina may see school transportation budgets tighten as districts absorb higher diesel costs. If the $40 million reserve is approved, districts and charter schools would receive funds based on need to cover fuel above $3 per gallon.
The takeaway
Rising fuel costs can quickly strain school budgets, so tracking how state lawmakers respond in the coming weeks will show whether districts get the relief they are requesting.
What happens next
State lawmakers are scheduled to reconvene the week of Nov. 16, 2026, and again the week of Nov. 30, 2026, when the fuel reserve request could be taken up.
Further reading
Explore more on Secondary Education to see how school budgets are affected by rising costs.
Source note: This article includes information reported by The Charlotte Observer.
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Should the state use public money to cover rising school bus fuel costs?
