Electric school buses hit pothole after major supplier goes bankrupt

By David Ferris | 08/20/2025 06:37 AM EDT

School districts used EPA funds to buy Lion buses. Now the company won’t honor warranties.

A Lion electric school bus is seen on display in Austin, Texas.

A Lion electric school bus is seen on display in Austin, Texas, in 2023. Eric Gay/AP

Even Republicans have tolerated one Biden-era climate program: a $5 billion effort to buy electric school buses and give kids’ lungs a break from diesel pollution.

But now a major bus supplier has collapsed — leaving school districts with technology that’s hard to fix.

Lion, an electric truck- and bus-maker based in Quebec, is in bankruptcy after selling roughly 3,400 buses in the United States. Last month, its new investors notified alarmed school districts that they would not honor warranties.

Advertisement

“They ran properly for approximately two weeks, then we started getting error messages,” said Andrew Dolloff, the superintendent of schools in Yarmouth, Maine, about the district’s two Lion buses.

GET FULL ACCESS