NYC: New school bus contracts to save $210 million
The New York City mayor and education chancellor report that the school busing contracts that were opened up for public bid last spring and awarded in May will save the city an estimated $210 million over the next five years. The savings is in addition to the $100 million saved from bids awarded last winter and the $95 million saved from pre-K contracts that were publicly bid in 2011.

New York City officials say that new busing contracts that were opened for public bid last spring will save an estimated $210 million over the next five years.
NEW YORK — School busing contracts that were opened up for public bid last spring and awarded in May will save the city an estimated $210 million over the next five years, the New York City mayor and education chancellor said on Monday.
The savings is in addition to the $100 million saved from bids awarded last winter and the $95 million saved from pre-kindergarten contracts that were publicly bid in 2011.
But the contract bids were not without opposition. Early this year, New York City’s biggest school bus driver union went on strike for more than a month, calling for the continuation of job protections, but Mayor Michael Bloomberg maintained that the city was "not legally allowed to provide” those job protections.
The busing contracts had not been open to public bid since 1979. From that year to 2011, when the city put out its bid for pre-kindergarten contracts, the cost for busing skyrocketed from $71 million to $1.1 billion per year.
“When we released the bids for new bus contracts, we broke a three-decade stranglehold that exploited taxpayers and took money out of the classroom, where it belongs,” Bloomberg said on Monday. “The bids we received surpassed our savings estimates and give us more money to invest in ensuring New York City schoolchildren are receiving the best education possible.”
The mayor also announced plans to place the expiring contracts for an additional 4,100 bus routes up for public bidding. These routes serve about 39,000 students with disabilities and 96,000 general-education students. City officials expect the public bidding to save hundreds of millions of dollars.
“We are continuing our effort to find savings by bidding out new bus contracts, and our preliminary review of the new bus bids released in April show an estimated savings of $210 million over five years,” said Dennis Walcott, chancellor of the New York City Department of Education. “This is our third request for bids since 2011, when we said that through a robust competitive bidding process we would anticipate savings while maintaining the highest standards for safe and dependable yellow bus service for our students.”
In total, the Department of Education has contracts that cover the school year for 7,700 bus routes that serve 152,000 students, 54,000 of whom have disabilities and require special transportation services, plus about 1,650 routes that run during the summer only.
More Management

HopSkipDrive’s CareEngine Targets the ‘Exceptions’ in Student Transportation
The new platform works alongside districts’ existing transportation management systems to coordinate specialized rides, automate last-minute changes, and turn ride data into operational improvements.
Read More →
The Right Ride for Every Student: Navigating the New Student Transportation Ecosystem
How should districts blend school buses with small-vehicle transportation and other options? EverDriven CEO Mitch Bowling discusses safety, costs, partnerships, and strategy.
Read More →
Annette Brown Always Takes the Extra Time: Meet Our 2026 School Bus Driver Hero
For more than 30 years, the Wa-Nee Community Schools driver has treated students like family, combining safety, compassion, and servant leadership to make a lasting difference on and beyond the school bus.
Read More →How to Build a Better Driver Training Program
Ready to boost up your school bus instructor training? Here’s how to pick the right talent and improve recruitment, retention, and safety.
Read More →
CALSTART and Forth Combine to Form Catalyst Mobility
The new name represents a renewed vision for the nonprofit focused on advancing clean, equitable, and affordable transportation solutions that move people and goods.
Read More →
What Makes a Great School Bus Driver Trainer?
Choosing the right school bus driver trainer takes more than experience. Learn six keys to selecting and developing trainers and evaluating program effectiveness.
Read More →
School Bus Contractors Expand Through New Deals, Acquisitions & Partnerships
STA's Canadian division acquires Ontario-based G&L Stevenson Transport; Durham School Services adds a new district in California; First Student expands in New Jersey; and Minnesota Coaches rebrands and acquires Halo Transportation.
Read More →
Logan Bus Company Rolls Out AI Phone System for NYC School Bus Families
A summer pilot found that AI agents could handle most routine calls, freeing up time for customer service staff to focus on emergencies and complex family concerns.
Read More →
From Intent to Impact: What I Learned About Leadership from TAPT
A Texas transportation supervisor shares lessons on self-awareness, accountability, managing stress and building trust — and why investing in leadership development matters at every stage of your career.
Read More →
NAPT Names 2026 Award Recipients, Hall of Fame Inductee
Who earned national recognition for their work in student transportation? This year, NAPT named five recipients of its 2026 awards for service, safety, and leadership, plus its newest Hall of Famer.
Read More →


