Related: New York City School Buses Hit the Road as Schools Reopen
NYC to Pay School Bus Companies $106M for COVID-19 Shutdown
The New York City Department of Education will reportedly pay the companies 40% of contracts established before the pandemic, instead of 85%, approximately $273 million.

The New York City Department of Education is reportedly paying school bus companies 40% of contracts established before the pandemic, instead of 85%.
File photo courtesy Katrina Falk
New York City is paying more than $100 million to school bus companies that were forced to shut down during the COVID-19 pandemic, the New York Post reports.
Officials reportedly said, according to the news source, the New York City Department of Education (NYC DOE) would have owed the companies 85% of contract costs during the shutdown, or $273 million for May and June, under contracts that were established before the pandemic. Instead, the city is paying 40% of contracts, or $106 million.
“We are required by law to provide bus service to our 60,000 students with disabilities, and tens of thousands of additional New York City children, including those in shelters, rely on us for transportation to and from schools,” Danielle Filson, a spokesperson for the NYC DOE, told The New York Post.
Filson added that the contracts, which were put into effect during the previous administration, must be upheld to ensure the city can continue school bus service.
In addition to the shutdown-induced payout, NYC will reportedly be required to pay school bus companies at least 43% of their contracts through 2025 if schools close for more than five days in a row, according to the news source. The money would go toward fixed costs such as utilities and driver benefits, officials told The New York Post.
Read the full story from The New York Post.
More Management

What Happens to a School Bus After Retirement? First Student Has a New Answer
Through a new partnership with Advanced Remarketing Services, proceeds from retired vehicle sales will support Special Olympics and other community-focused organizations while advancing sustainability goals.
Read More →
School Bus Logistics Adds 3 Data Analysts, Expands Routing Capabilities
Three new data analysts and a BusRight certification bring an added layer of support to the routing services districts already use.
Read More →
Outsourcing Student Transportation Services Toolkit
Did you know nearly 40% of school districts utilize a private contractor to serve their transportation needs? Explore why more school leaders are turning to contracted transportation services, and how outsourcing can create meaningful value without sacrificing control. Discover the practical benefits of a transportation services platform that provides flexibility with coordination.
Read More →
EverDriven Debuts TripCentral as New District Transportation Portal
The new transportation management hub takes over the district portal to power trip planning, operations, visibility, and intelligence for school district transportation needs.
Read More →
Lessons Learned from 4 Decades in Transportation: 5 Questions with Craig Beaver
Sit down with longtime transportation leader Craig Beaver moments before he retires, as he reflects on his career leading up to his role at Beaverton School District in Oregon and the secrets to leading great teams.
Read More →
BusRight Honors Texas Driver With Inaugural Behind The Wheel Award
Selected from more than 300 nominations, Lawson Crook earned BusRight’s inaugural award for his dedication to students and safety.
Read More →Craig Beaver’s Final Stop: Lessons from 43 Years in Transportation
After more than four decades in transportation, retiring Beaverton School District director Craig Beaver reflects on leadership, alternative fuels, AI, staffing, and what’s coming next. The Route is sponsored by IC Bus.
Read More →What 43 Years in Transportation Taught Craig Beaver About Leadership
After more than four decades in transportation, retiring Beaverton School District admin Craig Beaver reflects on leadership, alternative fuels, AI, staffing, and what’s coming next.
Read More →
ASTP's Tod Eskra Named an Entrepreneur of the Year
The award from Ernst & Young honors visionary leadership behind one of America's fastest-growing student transportation contracting companies.
Read More →
Drivers and Technicians: Help Benchmark Today's School Bus Manufacturers
If you've spent time behind the wheel or under the hood, we want to hear your perspective on the buses you know best.
Read More →



