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Waymo is facing a new federal safety investigation after reports that its driverless vehicles continued passing stopped school buses with flashing red lights, raising questions about whether a software fix implemented last year adequately addressed the problem.

The National Highway Traffic Safety Administration has escalated its investigation into a recall-related inquiry covering approximately 3,000 Waymo-owned vehicles, according to Reuters.

The regulator is examining whether a software update introduced in late 2025 failed to reliably prevent the robotaxis from driving past school buses when they were required to stop. More concerning, NHTSA said many of the reported incidents occurred after Waymo indicated the software fix had already been deployed.

Waymo is a unit of Alphabet Inc. (NASDAQ:GOOG)(NASDAQ:GOOGL).

Software Fix Under Federal Scrutiny

NHTSA initially opened a preliminary investigation in October 2025 into reports of Waymo vehicles illegally passing stopped school buses. The agency closed that earlier investigation Monday as it transitioned to a new recall query, shifting its focus to whether the company’s corrective measures were sufficient.

The agency is now reviewing the software changes Waymo made as part of a recall last December and investigating why additional incidents continued after the remedy was supposedly in place.

The issue has drawn attention from school districts in multiple cities. In Austin, Texas, the local school district documented 19 separate incidents involving Waymo vehicles and issued multiple citations carrying $300 fines, Reuters reported.

Public schools in Atlanta also recorded six violations, adding to concerns about how autonomous vehicles respond to school buses and student safety requirements.

Waymo said it has made progress addressing the problem but acknowledged the ongoing federal review.

“We have made significant improvements to vehicle behavior around school buses and have received no citations since March,” the company said in a statement.

Waymo added that it would cooperate with the investigation and said it “looks forward to continuing our engagement on recall processes for AV software that continues to learn and improve.”

Waymo’s Expansion Plans Face Technology Challenges

The investigation comes as Waymo pushes to expand its robotaxi business and gain greater control over the customer experience.

Earlier this month, Waymo co-CEO Tekedra Mawakana described the company’s partnership with Uber Technologies (NASDAQ:UBER) as a “crapshoot” for riders, saying the company plans to end the exclusive arrangement in Austin and Atlanta by January 2028.

Waymo currently allows customers in both cities to book its autonomous vehicles through Uber’s platform but plans to expand its standalone app to give riders a more direct way to request trips.

Mawakana acknowledged that the company’s technology still has room to improve, noting that autonomous driving systems cannot anticipate every possible road scenario in advance.

“We are still and always learning,” she said in an interview on Bloomberg’s The Circuit with Emily Chang.

Over the past year, Waymo vehicles have drawn attention for navigating construction zones, attempting to drive through flooded roads and encountering other unpredictable situations. In May, the company issued a recall covering more than 3,791 autonomous vehicles following a software glitch.

Waymo Faces Broader Safety Scrutiny

Waymo now provides more than 500,000 rides per week across 14 cities with a fleet of approximately 4,000 vehicles, according to the company.

The latest inquiry adds to growing regulatory scrutiny of Waymo’s autonomous driving technology.

NHTSA and the National Transportation Safety Board have separately opened investigations after a Waymo robotaxi struck a child in January near an elementary school in Santa Monica, California. The child suffered minor injuries, while regulators questioned Waymo about its school-zone operations and autonomous-driving software.

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