Murphy Signs $50M EV Rebate Bill for NJ Transit, School Buses

TRENTON, N.J. — Governor Phil Murphy signed a bill Thursday providing $50 million in rebates for electric buses in New Jersey school districts and municipalities, building on prior investments to slash emissions from public transit. The legislation expands incentives for zero-emission vehicles, prioritizing overburdened communities in environmental justice areas like Newark, Camden and Paterson. It follows the 2022 Electric School Bus Law, which authorized up to $45 million over three years for replacing diesel buses with battery-electric models and installing chargers.

The Department of Environmental Protection has already disbursed significant grants under the program: $15 million in the first round during National Drive Electric Week 2024 funded 48 electric school buses and 37 fast chargers across 14 projects, decommissioning 20 diesel buses. A second round awarded nearly $32 million, including over $18 million for 53 more electric school buses and 41 chargers in local districts. An additional $20 million announced earlier covers up to $350,000 per bus and station for districts serving high-need areas, adjusted for phasing federal tax credits and current EV costs.

The new $50 million targets broader public transit, complementing NJ Transit's zero-emission mandate from a 2020 law signed by Murphy. NJ Transit must ensure 10% of bus purchases are zero-emission starting December 2024, rising to 50% by December 2026 and 100% by 2032, with priority for low-income and urban routes. DEP's parallel $13.6 million EV Charging Grant Program funds 26 projects at transit hubs, retail centers and multi-unit housing to support the fleet transition.

School districts and contractors in places like Elizabeth and Jersey City can now apply for bus-only grants if charging infrastructure exists, streamlining upgrades amid round two applications under review as of late 2025. The initiative aims to protect student health from diesel exhaust while advancing New Jersey's clean energy leadership.