A settlement between the federal government and Volkswagen will send $1 million in grants to the Martha’s Vineyard Regional High School and the Steamship Authority to buy electric buses.

Part of $7.5 million in grants announced by the Baker administration just before Christmas, the two grants will provide $500,000 for the SSA to build a charging station and buy two electric shuttle buses servicing their Falmouth route. The high school grant of $500,000 will be used to buy two electric school buses.

The funding became available as part of a $2.9 billion settlement between Volkswagen and the U.S. Department of Justice after the German-based car manufacturer admitted in 2015 it had skirted federal emissions standards.

Volkswagen has since been required to invest in an environmental mitigation trust to fund national and state projects aimed at offsetting excess emissions. Massachusetts is expected to receive more than $75 million to spend on environmental mitigation project grants, the Baker administration said in a press release.

Environmental justice areas, including communities with large numbers of minority, low income or low English proficiency populations were a stated priority for grants, Governor Baker said. Separately, the Vineyard Transit Authority will also receive a share of $11 million from the settlement to go toward the purchase of five new buses.