Stein said the actor, who is also known for his roles in the baseball film Field of Dreams and the comedy thriller Revenge of the Nerds, was being accused as an act of revenge after the children had been terminated from the series, which angered their mother.
During a media conference on Thursday, Bernalillo County District Attorney Sam Bregman said that Busfield made an initial court appearance on Wednesday and a judge ordered that he remain in custody.
The case is now being transferred to district court and a hearing has been set for 20 January to determine whether Busfield should be released on bail pending trial.
"Our priority is to protect the rights of everyone involved," Bregman said at the news conference, urging anyone with information to contact law enforcement.
In a warrant for Busfield's arrest, prosecutors say the parents of boys allege that Busfield groomed and sexually abused the youngsters while working on set for The Cleaning Lady, which Busfield both directs and executive produces. It airs on Fox in the US.
In an affidavit supporting his arrest warrant, authorities claim the boys referred to Busfield as "Uncle Tim" and alleged that he "would tickle them on the stomach and legs". Both boys told authorities they were touched inappropriately for years, the arrest affidavit states.
One of the boys alleged that Busfield touched his private areas, according to court documents. The boy told authorities that the alleged inappropriate touching started when he was 7 years old and he was scared to speak out because he "feared" that Busfield would "get mad at him".
The documents state that the boy had suffered nightmares and was having troubles wetting the bed since the alleged encounters. He has been diagnosed with post-traumatic stress disorder (PTSD) and anxiety, authorities say in the court documents.