Young people aged 16 to 18 will be able to travel for free by bus across Greater Manchester from September.
The "Our Pass" travel card for teenagers is being launched by the region's Metro Mayor, Andy Burnham.
He said it could save young people and their families more than £500 a year.
Mr Burnham said: "I hope that Our Pass will change the lives of young people across Greater Manchester. For too long they have been Westminster's target for cuts and negative publicity. In Greater Manchester we are using devolution to make young people our priority for investment."
Sports firm JD is sponsoring the two-year pilot programme which will also offer a range of sport, culture and leisure opportunities such as free tickets for Halle concerts at the Bridgewater Hall.