Gov. Doug Ducey revealed a plan Friday to use Volkswagen settlement funds purchase hundreds of new school buses in low-income communities throughout the state.
The Ducey plan calls for $38 million from the settlement to be used to buy 280 new buses.
The funds will go to school districts with 60 percent or more students eligible for free or reduced-price lunches.
School buses 15 years or older with 100,000 miles will be replaced.
"K-12 education remains our top priority," said Ducey, in a statement. "These dollars will go a long way towards making sure Arizona students are safely delivered to school everyday. Additionally, putting these dollars toward the purchase of new school buses will free up existing funding sources, allowing school districts to focus on other capital needs to benefit students."
The funds come from a settlement stemming from a 2016 lawsuit in which the U.S. Department of Justice sued Volkswagen for modifying vehicles to cheat emission tests, violating the Clean Air Act.
Arizona will receive $57 over the next two years from the settlement.