School Districts Struggle with Rising Diesel Costs Amid Trump’s Iran Conflict
School districts face budget crises as diesel prices surge, forcing route consolidations and service cuts. Learn how Trump's policies impact education funding.
POLICY WIRE — Washington, D.C. — Rising diesel prices are creating financial strain for school districts nationwide, forcing administrators to make tough choices as they try to keep buses running and students safe.
More than 87% of school buses rely on diesel fuel to transport about 23.5 million students across the country, according to the Engine Technology Forum. With national average prices per gallon reaching $6.53, a significant jump from $3.74 a year ago, schools are rethinking their transportation strategies.
Some districts have begun consolidating bus routes, reducing daily trips, and increasing passenger loads, while others are cutting field trips and limiting non-essential travel. Officials say the cost increases are tied to global supply chain disruptions, including actions taken by President Donald Trump that have impacted oil markets.
“We rob Peter to pay Paul, basically,” said Nick Klemisch, superintendent of Garrison Public Schools in North Dakota. “We may have to not purchase a piece of equipment for the classroom.”
A survey of 188 school officials found that 40% had consolidated routes, 27% reduced idling, and 20% cut back on field trips. Patrick De Haan, a petroleum analyst, attributed the spike to challenges in refining oil into diesel and increased global competition for fuel supplies.
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With state laws limiting tax increases, many districts are struggling to cover rising fuel costs. In North Dakota, Klemisch has seen his diesel budget rise from $65,000 in 2024-2025 to $100,000 this year. He also drives buses himself due to a shortage of drivers, logging over 80 hours since classes resumed in late August.
In Wyoming, Carbon County School District No. 1 expects diesel to cost $4.50 per gallon but saw prices hit $5.99 at the pump. The district has already consolidated routes and plans to cut activity trips to save money. State officials say there are sufficient funds to cover the higher costs.
The Clark County School District in Las Vegas, which operates the nation’s longest bus routes, spent $15.1 million on fuel last year, a 19% increase from the previous year. Officials warn that fuel costs will continue to rise, adding an estimated $2.9 million in expenses for the 2026-2027 school year. However, the district faces an even greater challenge: a projected $100 million loss in state funding due to declining enrollment.
Smaller districts like Bay District Schools in Panama City are also feeling the pressure. Their budget includes $1.8 million for new buses, but diesel costs have risen, prompting an additional $84,000 in funding from unspecified sources. Despite the increase, the district has no plans to alter its services at this time.
Reporting by Policy-Wire (PW)
