The Biden administration promised a future where America’s children would ride to school on clean, quiet, zero-emission electric buses. Billions of your taxpayer dollars were poured into the Clean School Bus Program with the goal of replacing diesel fleets across the country with battery-powered vehicles.

But the reality on the ground looks far different. Instead of leading the way toward a green revolution, many school districts are quietly turning back to diesel, forced there by broken promises, bankrupt companies, and electric buses that can’t stay on the road. Plus, the impact of weather has been a huge factor.

At the center of the collapse is Lion Electric, a Canadian company that once stood as a showcase for Washington’s push toward electrification. In 2022, the Biden administration awarded Lion $159 million to produce 435 electric school buses, making it the third-largest recipient of US taxpayer-funded subsidies under the Clean School Bus Program.

Just a few years ago, Lion was valued at nearly $5 billion and touted as a success story. Today, it is bankrupt, sold for only $6 million in liquidation, and unable to deliver $95 million worth of buses it had promised to American school districts. I’m sure you’re saying, what about our tax dollars. They’re gone for good.

The fallout has been swift and painful. Lion Electric closed factories, terminated most of its workforce, and informed districts that warranties and purchase orders in the U.S. would no longer be honored. For the schools that had already taken delivery of Lion buses, this left them stranded.

The districts now own vehicles with limited repair options, little access to replacement parts, and no manufacturer support. For schools still waiting for buses, that those vehicles will never arrive. This sounds like the electric postal truck issue, we’ve covered this before. More money gone for good.

In Michigan, Homer Community School District superintendent Mike Leskowich saw firsthand how the promises unraveled. His district received $2.8 million in federal funding to acquire seven Lion buses. At first, the idea fit neatly into the Biden administration’s narrative - clean buses for children, less reliance on fossil fuels, and a modernized fleet. But when Lion collapsed, the warranties collapsed with it.

Leskowich described the frustration of trying to keep the buses running without manufacturer support, noting that his team has already begun sourcing parts on its own. He admitted that while his district will keep the electric buses operational for as long as possible, the long-term plan is to return to diesel.

The simple reality is that diesel buses cost far less — roughly $100,000 compared to $350,000 for electric — and they are far easier to maintain. Remember those extra costs go into your school taxes. And they’re about to rise to offset the difference.

In New York, modernizing public school transportation with zero-emission buses has been a priority for Governor Kathy Hochul. It’s not just the purchase of the buses, the districts are concerned as the infrastructure needed to be built to charge the buses, it isn’t there.

Some school districts have big concerns about distance of trips and charging with very cold weather, and recently they lost power because of the draw on the grid. New York State estimates the transition could cost $8–$15 billion more than replacing diesel buses, with only about 10% of this covered by state and federal funding. The difference always falls onto the taxpayers. So expect an increase in taxes.

Other districts are in the same position. In Louisiana, Madison Parish superintendent Charlie Butler reported that his 14 Lion buses are still new but repairs are already becoming a challenge. Even relatively small issues require specialized service and funding that his district must cover.

In Maine, Winthrop Public Schools has already pulled several Lion buses from service after repeated breakdowns. Officials there reported buses that couldn’t generate heat in the winter, lost steering or braking ability, displayed constant error codes, premature tire wear and failed structurally with defective frames. Coleen Souza, the assistant to the superintendent said, “the buses do not run for more than a month before needing more repairs.”

The problems extend beyond buses that are already delivered. Districts that were promised vehicles have been left in limbo. In Ohio, superintendent Dawn Wallace of the Ohio Valley School District said not a single bus has been delivered and that her district has given up hope they ever will.

Bureau Valley School District in Illinois expressed similar concerns, with leaders waiting to see whether bankruptcy proceedings will resolve anything. In the meantime, both districts are sticking with diesel fleets that are reliable and readily serviceable.

This was never how the program was advertised. The Clean School Bus Program was rolled out in 2021 as part of the infrastructure bill, pitched as one of the Biden administration’s marquee climate initiatives.

Kamala Harris championed the effort in 2022 with language meant to resonate emotionally: “Who doesn’t love a yellow school bus, right? It’s part of nostalgia, a memory of the excitement and joy of going to school.” The plan was to turn that nostalgia into a green energy success story. The reality, the initiative is becoming a cautionary tale about spending too much money, unproven technologies and bad ideas.

The economics alone should have raised red flags. An electric school bus costs more than three times as much as a diesel bus. On top of that, school districts must invest in expensive charging infrastructure, re-train staff, and adjust to entirely new maintenance procedures and additional costs.

For many districts operating on already tight budgets, this represents a massive financial strain. Federal grants were meant to bridge that gap, but when manufacturers collapse or fail to support their products, the burden shifts back to taxpayers and local school systems.

The Lion Electric bankruptcy has laid bare a broader problem with the administration’s green energy agenda: the government is investing heavily in companies that lack the stability to deliver. When those companies fail, it’s not just a financial loss on paper - it disrupts communities, derails planning for school districts, and forces local officials to scramble for alternatives.

Lion’s bankruptcy has the school districts left holding the bag, and cannot provide them with solutions. There is no immediate plan to replace the undelivered buses, honor the lost warranties, or reimburse schools that now face unanticipated repair costs. And no way to get our tax dollars back.

For many districts, the path forward is clear. They will continue operating their existing diesel fleets and purchase new diesel buses when needed. The reliability, affordability, and ease of maintenance outweigh the risks of adopting electric buses without proven long-term support. The infrastructure has not improved and charging is still a huge issue.

The lesson here is not that electric buses are inherently impossible, but that federal mandates and subsidies cannot force the change. When taxpayer money is funneled into companies based on political goals rather than market viability, the outcome is predictable: stranded assets, wasted funds, and disillusioned communities.

School districts are pragmatic. Their priority is to get children to school safely and on time. If electric buses cannot be maintained, cannot be repaired, and cannot be delivered, then districts will do what they have always done - turn back to diesel. And for now, that is exactly what they are doing.

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Lauren Fix is an automotive expert and journalist covering industry trends, policy changes, and their impact on drivers nationwide. Follow her on X @LaurenFix for the latest car news and insights.