Typically, school transportation is provided to school districts, charter schools, and other non-public schools either by the school district’s own transportation department or by a private contractor. However, public transit that is operated by a state or local government authority (an “Operator”), can also, in some instances, provide school transportation services. For an Operator to be able to provide “school bus operations” and also continue receiving federal funds to operate public transportation, an exemption must be met. Details follow.