Fifty children aged four to six years old and the driver of the school bus they were on were killed when their vehicle was hit by a train in central Egypt on Saturday, officials said.
The transport minister resigned in the wake of the crash near Manfalut, 350km (230 miles) south of Cairo.
The provincial governor said the man in charge of the crossing was asleep and had been arrested.
Egyptian roads and railways have a poor safety record.
An estimated 8,000 people die in car accidents each year in the country.