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NEW YORK (CNN) -- A judge set bail at $250,000 Friday for the police officer accused of slamming his van into a pregnant woman, her young son and her sister last week, killing all of them. Police say he was drunk at the time of the accident.

Officer Joseph Gray was led away in handcuffs at the end of the proceeding.

Earlier this week, another judge had decided to release the officer with no bail requirement, outraging family members of the victims and many New Yorkers.

Prosecutors initially asked for a bail of $500,000, citing the fact that Gray was drinking when he hit the family and that he had acted irresponsibly. Gray's defense attorneys argued bail would not be necessary, saying Gray has roots in the community and that a police officer presents low risk of flight.

VIDEO The deaths of a pregnant woman, her son and her sister, run over by an allegedly drunk police officer, prompts NYC Mayor Guiliani and Police Commissioner Bernard Kerik to announce disciplanary actions against 17 other officers. Play video (QuickTime, Real or Windows Media) NYC police officer Joseph Gray is charged with killing a pregnant woman and 2 others. The off-duty officer was allegedly drunk driving. CNN's Jason Carroll reports (August 6) Play video (QuickTime, Real or Windows Media)   RESOURCES People v. Gray (Indictment)  From FindLaw

But Brooklyn State Supreme Court Judge Neil Firetog set bail at the quarter-million mark. Gray's parents said they are putting up their Staten Island home as collateral, but until that transaction takes place, their son will remain in custody.

Gray was indicted Thursday on three counts of manslaughter, three counts of vehicular manslaughter, and one count each of reckless driving, reckless endangerment, and driving while intoxicated. His attorney entered a plea of not guilty on all counts Friday.

Maria Herrera, her son, Andy, 4, and her sister, Dilcia Pena, 16, were killed Saturday night as they attempted to cross a street in the Sunset Park area of Brooklyn. Herrera's unborn child was delivered in an emergency procedure after the accident but later died.

A funeral for the victims was held Thursday.

Police said blood tests show Gray was drunk when his van struck the family as he was pulling out of the parking lot of a topless bar. He will not be charged in the death of the newborn, prosecutors said.

Family members of the victims and many New Yorkers were outraged with Gray was released without bail after his initial court appearance.

In the wake of the investigation into the deadly incident, Police Commissioner Bernard Kerik ordered the suspensions of five officers and the transfers of five others from the city's 72nd Precinct, where Gray was assigned.

Those transferred including the precinct's commanding officer, executive officer and integrity control officer. Seven others who were allegedly drinking in a precinct parking lot around the time of the deadly incident were placed on modified duty, he said.

Four of the five suspended officers were disciplined for drinking in the Wild Wild West, the topless bar where Gray had also allegedly been drinking before the incident. The bar was supposed to be off-limits to officers from the 72nd Precinct, Kerik said.

The fifth suspended officer, a supervising sergeant, was allegedly among the group drinking in the parking lot.