NC schools to seek $40M fund for rising diesel fuel costs for buses

The North Carolina Department of Public Instruction (DPI) plans to request a $40 million reserve fund from the General Assembly to help school districts cover rising diesel fuel costs for buses, WFAE reported.

DPI's senior director of government affairs and strategy, Geoff Coltrane, told the state Board of Education that many school districts and charter schools have been affected by the increased fuel prices, which have nearly doubled compared to previous years for the same amount of fuel.

In the first two months of the 2026-27 school year, districts spent about $17.1 million on 3.8 million gallons of diesel, compared to roughly half that amount in the same period during the past two school years.

AAA data shows that diesel fuel prices in North Carolina have risen from about $3.50 per gallon a year ago to around $5.50 currently, influenced by ongoing conflicts such as the Iran war.

The state had established a similar reserve fund in 2023 in response to fuel price spikes following Russia’s invasion of Ukraine, and DPI has already informed legislative staff about the new funding request.