MORRISVILLE, N.C. -- The U.S. Transportation Secretary made a major announcement Monday in North Carolina. She is proposing new safety rules for school buses that include seat belts. While it may seem like a no brainer, finding funding to pay for it will create a challenge.

If passed, small buses must have three-point seat belts within three years. It also provides new federal standards for seat belts on big buses.

"As young as they are, these children know seat belts save lives," explained Secretary Mary Peters. "They're used to buckling up every time they get in the car."

The proposal allows districts to use federal funds to pay for the belts which cost an additional $10,000 per bus. Statewide that's nearly $4 million a year. On top of that, other safety programs would suffer if money was used for school bus seat belts.

"It's very much a decision that each state is going to have to make and in some cases each school district," said Derek Graham, transportation director for the Department of Public Instruction. "But we've been looking for some guidance for a while, and to have the secretary here to provide that guidance is very encouraging."

"We know that seat belts are a significant investment. We don't want communities to have to choose between limited funds and the safety of children," added Peters, whose proposal also calls for higher seat backs.

Currently seats backs must be 20 inches tall. The new rule would require 24 inches, but all new North Carolina buses will already meet that requirement.

Peters chose North Carolina because the state has experimented with seat belts in more than a dozen buses. Last year, 262 kids were injured in accidents involving a school bus.

More than 750,000 kids across the state ride a school bus to and from school. Statistics show the bus is the safest way for a child to get to school.