North Carolina education officials plan to ask lawmakers for a $40 million school transportation fuel reserve as higher diesel costs strain district budgets.

The request would help school districts and charter schools cover fuel spending above state allotments, according to WFAE’s Nov. 4 report. It is a funding proposal, rather than an appropriation already approved by the General Assembly.

Geoff Coltrane, the Department of Public Instruction’s senior director of government affairs and strategy, described the request to the State Board of Education on Nov. 4. He said DPI had notified legislative staff.

Districts spent about $17.1 million on 3.8 million gallons in the first two months of the 2026-27 school year, roughly twice the cost of the same volume during the comparable period in each of the previous two years, WFAE reported. The increase reflects higher prices rather than a doubling in fuel consumption.

Budgets under pressure

In an earlier statewide examination, Carolina Public Press reported that some districts expected to exceed their fuel budgets if prices stayed high. Burke County transportation director Daniel Wall estimated about $260,000 in additional fuel spending against a $3 million transportation budget.

Districts can buy through a state contract, which can reduce costs relative to retail purchases. That does not eliminate their exposure to rising prices. CPP reported that transportation officials were reviewing route efficiency, limiting idling and considering alternative fuels as buses came due for replacement.

The impact also varies by purchasing decisions. Wake County officials told CPP that earlier bulk purchases had delayed the effect of the increase there.

What this means locally

The proposal concerns statewide school transportation funding, including the system used by Union County schools. The reports reviewed do not establish a specific award for Union County or a local bus-service reduction. Any allocation would depend on legislative action and the program’s eventual rules.