The family of 34-year-old Andrew Simmons and Altamont-based USD 506 agreed to the $500,000 settlement on Tuesday. The Edna man was married and had five children.
Simmons was killed in February 2012 when a school bus collided with the SUV he was driving in an intersection about four miles south of Altamont.
The family sued the school district in Labette County District Court, alleging negligence.
A lawyer for USD 506 says the school district did not admit any wrongdoing in the settlement.