The council is spending about 1.5m setting up the scheme, which will allow under-16s to pay a quarter of the normal fare, and give 16- to 19-year-olds half-price tickets.
West Sussex is a predominantly rural area, and transport is one of the main issues young people have raised with the youth service.
Carole Aspden, the principal youth officer, said: "Because young people have campaigned so hard, the council has agreed to put some money into this."
The scheme is designed partly to help young people get to school, but will operate at all times. The card will only be available to young people who are in education or training. The scheme is set to start at the beginning of the next school year.
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