Middletown Township police say 75-year-old Robert Derr turned himself in on Thursday.
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Investigators say they received a tip about possible child exploitation last month.
After obtaining a search warrant, police say they found more than 1,000 digital images of child porn at Derr's home in Langhorne.
He was released on $100,000 bail. He is not allowed to use the internet or have contact with anyone under 18 years old.
Derr's next court appearance is set for May 8.
Derr was immediately suspended from his position as a bus driver, police say, and has since resigned. He had no comment when Action News went to his home on Friday.
Kathy Lichtner used to be a bus driver for Neshaminy but does not know Derr. She said they always had strict background checks, and staffers take their commitment to kids seriously.
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"We are the first Neshaminy person they see and the last in the evening, and that's true. And so many of us take our job so seriously, and it's such a shame one bad apple spoils the whole barrel," said Lichtner, who no longer works for the district.
In a statement, Neshaminy School District Superintendent Jason Bowman said there is no indication so far that the Derr acted inappropriately toward any student or that illegal activity occurred during work hours.
The statement goes on to read:
"Student safety is our number one priority, and all of our staff members, including those we contract from outside sources, are fully criminal and child protection background checked before they can work in our facilities or with students.
"We have a strong relationship with our local and Bucks County law enforcement agencies. As soon as we are informed of an investigation or arrest of a staff member or contractor, we take immediate and decisive action to remove that person and provide whatever assistance is needed to complete the investigation.
"I expect the absolute highest level of professionalism and compliance with the law from every employee. We will tolerate no less."