School bus drivers lead a convoy through downtown Los Angeles, demanding that Congress and California lawmakers allocate enough funds to support all students in distance learning. — Reuters/File
Rising diesel prices stemming from the Iran conflict are putting additional pressure on U.S. school budgets. Since the war began, fuel costs have surged, increasing expenses for bus operations and generator use—costs that officials warn they won’t be able to sustain for much longer.
From Yakima, Washington, to Waco, Texas, school districts are dipping into emergency reserves to keep buses operational. In remote Alaska, officials are racing to secure enough fuel to maintain electricity, according to interviews with Reuters.
“It’s more than a small burden—it’s like a haystack on a camel’s back,” shared Yakima Superintendent Trevor Greene.
The situation highlights one of many ripple effects of the US-Israeli conflict with Iran, which has disrupted about 20% of the world’s oil supply.
Fuel prices have accelerated at one of the fastest rates ever recorded since the conflict ignited in late February. This spike has destabilized economies worldwide and has become a political issue for President Donald Trump ahead of November’s midterm elections, during which his Republican Party is striving to retain narrow majorities in Congress.
U.S. school bus fleets are major consumers of diesel, using over 800 million gallons each year, according to the American School Bus Council.
Since last December, the average price paid for diesel by American fleets has increased 67%, reaching $5.52 per gallon. This rise could raise the annual operating costs for school buses by roughly $1.8 billion, according to an analysis by fleet management company Samsara.
This financial challenge puts a strain on already tight school budgets, explained James Rowan, executive director of the Association of School Business Officials International.
“While districts can plan for increased expenses, the rapid fluctuations in fuel prices make accurate budgeting difficult. Some districts that managed to absorb costs this year using reserves or temporary measures may lack that flexibility moving forward,” he said.
A recent survey by the School Superintendents Association (AASA), involving 188 officials during the week of May 4, shows nearly a third of districts are redirecting funds from other programs to cover rising fuel costs. Nearly 20% are drawing on reserves or emergency funds.
To cut costs, districts are consolidating routes, enforcing anti-idling policies, altering fuel procurement procedures, postponing maintenance, and trimming administrative expenses and staffing, the survey reveals.
Yakima’s district reports diesel prices up 64% year-over-year, currently at $6.30 per gallon. This would cost an additional $213,000 annually for fuel to operate its 60 buses—a sum roughly equal to two teacher salaries, Greene noted.
The district, which serves a predominantly low-income agricultural community with an 86% poverty rate, describes its funding as “tremendously underfunded.” Instead of filling its 30,000-gallon diesel tank all at once, it now makes smaller purchases when prices dip, as its CFO Jacob Kuper explained, “We’re just limping through the end of the year.”
In Thief River Falls, Minnesota, Superintendent Christopher Mills reports diesel costs have increased about 30% since the conflict started, affecting transportation for approximately 800 students. The district is attempting to shield classrooms from the impact but warns that ongoing price hikes could lead to reduced support services for students.
Even in Texas, where oil is plentiful, districts aren’t immune. Waco ISD, operating over 80 buses with an average round-trip distance of around 60 miles daily, saw an 84% increase in diesel costs year-over-year in early April.
In Alaska’s Yupiit School District, diesel is used primarily for heating and electricity, not buses. Superintendent Scott Ballard said, “If we can’t produce electricity, we can’t run the school.” The district, serving 550 students and often cut off by ice in winter, faces tough decisions: lock in a higher fuel price now or gamble that prices will drop. “It’s a very pressure-packed situation,” he said.
Some large districts are somewhat shielded from fuel price swings. New York City, the nation’s largest by population, outsources about 60% of student transportation, with contractors often absorbing fuel cost changes, according to Paul Quinn Mori, president of the New York School Bus Contractors Association.
Meanwhile, Los Angeles Unified, the second-largest district nationally, has been transitioning away from diesel buses for years. Around 70% of its approximately 1,300 buses run on alternative fuels or electricity, a district spokesperson noted. “While rising diesel prices still impact our transportation budget, we’ve taken proactive steps toward clean transportation to lessen reliance on fossil fuels,” they added.
