Providence school bus drivers have agreed to a new contract with First Student, which provides transportation services to a large part of the district. The agreement comes after the Teamsters Local 251 union initially rejected an offer from the private company last Friday. The new contract includes a pay increase of $37 per hour by June 2026, as well as doubling the 100% company-funded contribution into the Teamsters Savings and Investment Plan and increasing company coverage of health care costs to 92.5%. The new contract is retroactive to July 1, 2022, and is set to run for four years instead of five years as previously offered. The district warned families of a potential strike in a letter sent out Tuesday, saying the city had “no adequate substitute transportation” for students if a strike were to take place.