Diesel costs and driver shortages strain US school bus operations
Rising diesel costs linked to the Iran War are compounding a persistent shortage of school bus drivers, forcing US school districts to adjust routes and services. Peter Mannella, of the National Association for Pupil Transportation, told Axios that transportation is often treated as a non-instructional expense, making it a target for cuts when districts prioritize spending on teachers, aides, and special education.
Rising diesel costs linked to the Iran War are compounding a persistent shortage of school bus drivers, forcing US school districts to adjust routes and services. Peter Mannella, of the National Association for Pupil Transportation, told Axios that transportation is often treated as a non-instructional expense, making it a target for cuts when districts prioritize spending on teachers, aides, and special education.
A May survey of 188 school officials found that 40% had adjusted routes, 27% enforced anti-idling rules, and 25% cut routes entirely. Additionally, 20% limited optional trips, 14% changed fuel purchasing strategies, and 8% required students to walk farther to stops. Mannella noted that these changes often result in parents driving students to school activities or districts moving pickup points farther from students' homes.
Cherry Creek Public Schools, located outside Denver, illustrates the operational strain. Transportation director Mark Ingram told Axios that the district is short about 40 drivers. The district operates approximately 611 vehicles, including 320 yellow buses and other vehicles for special needs and district operations. Ingram stated that the lack of personnel means some routes run 10 to 15 minutes late, which can cause students to miss school-provided breakfast or arrive late to first period.
The financial pressure is evident in the district's fuel budget. Cherry Creek Public Schools budgeted $1.5 million for fuel this year, an increase of $300,000 from previous years. However, the district now expects to spend between $2 million and $2.3 million. Ingram said the district has not cut services but is being frugal with expenditures.
The driver shortage extends beyond wage issues. Nick Martini, a former school bus driver and current executive at a Minneapolis-area school bus contractor, explained that the job demands significant multitasking as operators supervise students and navigate traffic while adhering to strict safety, licensing, and training standards. Split shifts can occupy drivers for 10 to 12 hours, yet they are compensated for only a portion of that time. Furthermore, districts compete with delivery and logistics companies for workers who hold commercial driver's licenses.
Rural districts face additional challenges. Unlike urban or suburban students who may walk to school, rural children often live miles away, requiring longer bus routes. These districts struggle to match private-sector driver pay or hire third-party operators. Special-needs transportation is also costly due to curb-to-curb routes with long gaps between stops.
Efforts to electrify fleets have faced obstacles. Elleka Yost of the Association of School Business Officials International told Axios that federal funding programs from the Biden administration have slowed or ended. Yost noted that electric buses are not an immediate fix for all districts due to narrow or winding roads, small bridges, extreme temperatures, and a lack of trained technicians.
Mannella said districts will continue adapting to these pressures. He described transportation as too important to abandon, stating that problem-solving remains central to maintaining service despite the constraints.
Filed by the digital assets desk of MarketPR on October 5, 2026. Source: axios.com. Indicative figures are not investment advice.