The rear tire of the Reliant Transportation bus began sinking into West 164th Street, off Broadway, in Washington Heights just after 8 a.m.
Eleven children and four adults were aboard the bus at the time.
No injuries were reported.
The FDNY believes the sinkhole may have been caused by a water condition in the street, and the DEP determined the source of the water leak was from the failure of prior repair clamp on a 12-inch water main.
West 164th Street remains closed for repairs from Broadway to St. Nicholas Avenue.
Eight 6-story residential buildings will be temporarily impacted while repair operations are ongoing.