The twice-indicted president of the union representing 15,000 city school bus drivers will take a sabbatical from the union as part of a bail deal following his arrest yesterday on federal racketeering charges, according to a press release by the U.S. attorney’s office in Manhattan.

Federal prosecutors yesterday expanded their case against the president of Local 1181, Salvatore Battaglia, unsealing a new indictment that accuses him of racketeering in connection with the Genovese crime family. Mr. Battaglia was initially charged with obstruction of justice last year in a sweeping indictment that named 20 defendants with alleged links to the Genovese crime family. He has kept his position in the union despite the charges hanging over him.

Mr. Battaglia, 60, is not the only official at the Local 1181 to be accused of corruption.

The longtime secretary-treasurer, Julius Bernstein, has been indicted on racketeering charges. When Mathew Ianniello, alleged to be the boss of the Genovese crime family, pleaded guilty to obstruction charges in September, he said the Local 1181 was a recipient of payoffs.

The indictment yesterday charges Mr. Battaglia with cutting deals with several bus companies. As part of those deals, Mr. Battaglia agreed that in return for payoffs he would not organize the employees of those bus companies. Mr. Battaglia also allegedly paid out extra money from the union’s welfare fund to an unnamed medical center in Queens for cash payments, according to the indictment.

Mr. Battaglia was arrested yesterday morning in Staten Island and was later released on a $1.5 million bond. His bail package requires him to take a sabbatical from the union and stay away from the owners of bus companies the union he is involved with, according to the press release.

Prosecutors are attempting to get Mr. Battaglia to forfeit nearly $2.8 million as part of the proceedings against him.

An attorney for Mr. Battaglia did not immediately return a phone call last night.