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updated 8:29 p.m. ET Aug. 12, 2008

DALLAS - The federal government says it will temporarily stop granting licenses to new bus companies after a crash in Texas killed 17 people.

The head of the Federal Motor Carrier Safety Administration told The Associated Press on Tuesday he wants all applications to be checked against a database of bus companies that were given out-of-service orders.

Iguala BusMex Inc., whose bus crashed near Sherman on Friday, was awaiting approval for a federal license. The company is run by a man who also operates Angel Tours Inc., which was forced to take its vehicles out of interstate service June 23 after an unsatisfactory review by federal regulators.

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Agency head John H. Hill said the suspension will not be "for a long period of time."