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Yeah, they do. Just in case kids on the bus need to cross the road. It's for there safety.

Added; EXCEPT if you are on the oppposite side of 4-lane highway divided by a median.

True - but even then it is wise to keep a sharp lookout for kids - who are still prone to doing stupid stuff, like running across the divided highway without looking. You may not have to stop, but it is a good idea to take your foot off the gas and be prepared to stop suddenly - just in case.

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Q: Does a driver driving in the opposite direction of a school bus with flashing lights need to stop?
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