The 50 per cent cut in public transport fares for under 24s is to be extended to include private operators.
As the Irish Examiner reports, a formal announcement from the National Transport Authority about the move is expected this week.
Up to now, it only applied to state-subsidised public transport operators, such as Dublin Bus, Bus Eireann, Irish Rail and the Luas.
It was introduced earlier this year as part of the Government's response to the cost-of-living crisis.
People in Government have confirmed that further cuts are on the way which will see half-price fares on private buses.
The cuts in ticket prices will impact students commuting to school or college.
A Government source said the measure was expected to come into effect from Monday for some participating commercial bus operators, but it would take a number of days to get the system ready.
USI President, Beth O'Reilly says this will be a massive boost for students in rural areas: "It was included in our pre-Budget submissions when we first put it together.
"It is good to see that the Government heard us and is taking our request seriously. It means they are working towards making sure students from rural areas are not disadvantaged when attending higher level education."
The Minister for Transport, Eamon Ryan announced that as of September 5th the young adult card and student leap card fare initiative is being extended to the commercial bus sector.
He said people holding the young adult card and student leap card can now avail of the 50 per cent fare discount with participating commercial bus operator services.
Speaking about the announcement, Minister for Transport, Eamon Ryan said: “This is a good news story for young commuters and a really timely one too with the start of college, apprenticeships and training courses just around the corner.
"Initiatives such as the young adult card, the student leap card and the 20 per cent average fare reduction which was introduced as a cost-of-living measure earlier this year, are firstly putting money back into people’s pockets, and secondly, are helping us reduce our emissions from transport because more people are choosing public and shared transport."
Anne Graham, chief executive of the NTA said: “Value for money is not the only factor that gets people on to public transport, but it is an important one, and we do know that cutting fares to such an extent and expanding services where people can avail of these discounts, will make public transport more attractive to more young adults."