SEC. 2. FINDINGS. 
Congress finds that— 
(1) the United States is facing a housing avail-
ability and affordability crisis, marked by an inabil-
ity of many citizens to find homes in their desired 
communities at a price affordable to them; 
(2) transit-oriented development benefits com-
munities, transit agencies, and the people of the 
United States by improving access to transit, jobs, 
and services, spurring revitalization of neighbor-
hoods and economic development, and boosting tran-
sit ridership; 
(3) the transportation infrastructure finance 
and innovation program under chapter 6 of title 23, 
United States Code (referred to in this section as 
the ‘‘TIFIA program’’), and the railroad rehabilita-
tion and improvement financing program under 
chapter 224 of title 49, United States Code (referred 
to in this section as the ‘‘RRIF program’’), can help 
respond to the urgent need for additional housing by 
financing transit-oriented development projects with 
mixed use or housing components and have already 
been authorized to do so under the FAST Act (Pub-
lic Law 114–94; 129 Stat. 1312); 
(4) if made more efficient, the transit-oriented 
development provisions of the TIFIA program and 
VerDate Sep 11 2014 
23:59 Jan 14, 2026
Jkt 069200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H7062.IH
H7062
ssavage on LAPJG3WLY3PROD with BILLS
the RRIF program would offer attractive financing 
strategies that could be used to forge public-private 
partnerships to deliver accelerated housing produc-
tion and improved economic development and com-
munity vitality near transit nodes nationwide; 
(5) improving the information available about 
the application process, shortening the underwriting 
timeline, improving internal deliberation processes 
and government efficiency, and executing the adjust-
ments required to make transit-oriented development 
projects easier to finance through the program 
would benefit communities across the country, espe-
cially in smaller communities with less robust devel-
opment environments; and 
(6) while significant administrative reforms 
have improved the programs, the Department of 
Transportation has been limited in its ability to fa-
cilitate such development under the constraints of 
the current law governing the TIFIA program and 
the RRIF program. 
SEC. 3. EXTENSION OF AND IMPROVEMENTS TO THE TIFIA 
PROGRAM. 
(a) EXTENSION.—Section 11101(a)(2) of the Infra-
structure Investment and Jobs Act (Public Law 117–58; 
135 Stat. 443) is amended by striking ‘‘fiscal years 2022 
VerDate Sep 11 2014 
23:59 Jan 14, 2026
Jkt 069200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H7062.IH
H7062
ssavage on LAPJG3WLY3PROD with BILLS
through 2026’’ and inserting ‘‘fiscal years 2027 through 
2031’’. 
(b) DEFINITIONS.—Section 601(a) of title 23, United 
States Code, is amended— 
(1) in the matter preceding paragraph (1), by 
inserting ‘‘and section 612’’ after ‘‘609’’; 
(2) by redesignating paragraphs (1) through 
(22) as paragraphs (2), (3), (4), (6), (7), (8), (9), 
(10), (11), (12), (13), (14), (15), (16), (17), (18), 
(19), (20), (21), (22), (23), and (24), respectively; 
(3) by inserting before paragraph (2) (as so re-
designated) the following: 
‘‘(1) ATTAINABLE
HOUSING
PROJECT.—The 
term ‘attainable housing project’ means a transit- 
oriented development project— 
‘‘(A) that serves households with an in-
come that is not more than 120 percent of the 
area median income; and 
‘‘(B) in which the majority of the housing 
units in the project are affordable to households 
with an income that is not more than 80 per-
cent of the area median income.’’; 
(4) by inserting after paragraph (4) (as so re-
designated) the following: 
VerDate Sep 11 2014 
23:59 Jan 14, 2026
Jkt 069200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H7062.IH
H7062
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(5) INVESTMENT-CREDITWORTHINESS ASSESS-
MENT ALTERNATIVE.—The term ‘investment-credit-
worthiness assessment alternative’ means, with re-
spect to project obligations for a transit-oriented de-
velopment project, a sufficient demonstration of fis-
cal soundness and low risk of credit default that is 
not an investment-grade rating, such as— 
‘‘(A) a joint liability agreement or equiva-
lent between the project lead and a State or 
unit of local government with a sufficient credit 
rating; 
‘‘(B) an alternative rating sufficient to ac-
count for the risk assumed by the Department 
of Transportation for a project in which the 
Federal credit instrument is $150,000,000 or 
less, as determined by the Secretary; or 
‘‘(C) a certification that a project is 
deemed creditworthy by an approved originator- 
servicer under section 612.’’; 
(5) in paragraph (12) (as so redesignated), in 
subparagraph (D)(ii)— 
(A) by striking ‘‘investment grade rating’’ 
and inserting ‘‘investment-grade rating’’; and 
VerDate Sep 11 2014 
23:59 Jan 14, 2026
Jkt 069200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H7062.IH
H7062
ssavage on LAPJG3WLY3PROD with BILLS
(B) by inserting ‘‘or an investment-credit-
worthiness assessment alternative’’ after ‘‘rat-
ing agency’’; 
(6) in paragraph (14) (as so redesignated), by 
striking subparagraph (E) and inserting the fol-
lowing: 
‘‘(E) 
a 
transit-oriented 
development 
project;’’; and 
(7) by adding at the end the following: 
‘‘(25) 
TRANSIT-ORIENTED
DEVELOPMENT 
PROJECT.—The term ‘transit-oriented development 
project’ means a project located within 1⁄2 mile walk-
ing distance of a fixed guideway transit facility, bus 
rapid transit facility, passenger rail station, or 
multimodal facility, including a transportation, pub-
lic utility, or capital project described in section 
5302(4)(G)(vi) of title 49, and related infrastruc-
ture— 
‘‘(A) that consists entirely of, or includes, 
residential, commercial, public infrastructure, 
or mixed-used development or other related in-
frastructure, including public or community 
space; 
‘‘(B) that incorporates private investment; 
and 
VerDate Sep 11 2014 
23:59 Jan 14, 2026
Jkt 069200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H7062.IH
H7062
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(C) for which the project sponsor dem-
onstrates the ability to generate new revenue 
for the relevant station, facility, or service by 
increasing ridership, increasing tenant lease 
payments, or carrying out other activities that 
generate revenue exceeding costs.’’. 
(c) DETERMINATION OF ELIGIBILITY AND PROJECT 
SELECTION.—Section 602 of title 23, United States Code, 
is amended— 
(1) in subsection (a)— 
(A) in paragraph (2)— 
(i) in subparagraph (A)— 
(I) in clause (iii)— 
(aa) by striking ‘‘investment 
grade rating’’ and inserting ‘‘in-
vestment-grade rating’’; and 
(bb) by inserting ‘‘or an in-
vestment-creditworthiness assess-
ment alternative’’ after ‘‘credit 
instrument’’; and 
(II) in clause (iv), by inserting ‘‘, 
or an investment-creditworthiness as-
sessment alternative’’ after ‘‘suffi-
cient’’; and 
(ii) in subparagraph (B)— 
VerDate Sep 11 2014 
23:59 Jan 14, 2026
Jkt 069200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H7062.IH
H7062
ssavage on LAPJG3WLY3PROD with BILLS
(I) by striking ‘‘investment grade 
rating’’ and inserting ‘‘investment- 
grade rating’’; and 
(II) by inserting ‘‘, or an invest-
ment-creditworthiness assessment al-
ternative’’ after ‘‘sufficient’’; 
(B) in paragraph (3)— 
(i) by striking ‘‘A project’’ and insert-
ing the following: 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), a project’’; and 
(ii) by adding at the end the fol-
lowing: 
‘‘(B) TRANSIT-ORIENTED
DEVELOPMENT 
PROJECTS.— 
‘‘(i) 
COMPATIBILITY
WITH
PLAN-
NING.—In the case of a transit-oriented 
development project, the project sponsor 
shall be required— 
‘‘(I) to provide evidence of a sig-
nificant nexus with a project included 
in the transportation improvement 
program developed by the applicable 
metropolitan 
planning 
organization 
under section 134(j) and the state-
VerDate Sep 11 2014 
23:59 Jan 14, 2026
Jkt 069200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H7062.IH
H7062
ssavage on LAPJG3WLY3PROD with BILLS
wide transportation improvement pro-
gram developed by the applicable 
State under section 135(g); or 
‘‘(II) to demonstrate compat-
ibility with the long-range transpor-
tation plan developed by the applica-
ble metropolitan planning organiza-
tion under section 134(i). 
‘‘(ii) COORDINATION.—In the case of 
a transit-oriented development project that 
is located within a metropolitan planning 
area, the project sponsor shall coordinate 
with the applicable metropolitan planning 
organization, including by providing timely 
notification to the metropolitan planning 
organization during the planning and enti-
tlement process, and by sharing informa-
tion on project details, transportation im-
pacts, and mitigation measures.’’; 
(C) in paragraph (5)(B)(ii), by striking 
‘‘project described in section 601(a)(12)(E)’’ 
and inserting ‘‘transit-oriented development 
project’’; and 
(D) by adding at the end the following: 
VerDate Sep 11 2014 
23:59 Jan 14, 2026
Jkt 069200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H7062.IH
H7062
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(12) REQUIREMENT FOR ATTAINABLE HOUS-
ING PROJECTS.—In the case of an attainable hous-
ing project, not less than 75 percent of the total fi-
nancial assistance provided for the project under the 
TIFIA program shall be used for residential compo-
nents of the project.’’; 
(2) in subsection (b)(3), in the matter pre-
ceding subparagraph (A), by striking ‘‘The Sec-
retary’’ and inserting ‘‘Except in a case in which a 
project intends to use an investment-creditworthi-
ness assessment alternative, the Secretary’’; 
(3) in subsection (c)(2)— 
(A) by striking ‘‘No funding’’ and inserting 
the following: 
‘‘(A) IN GENERAL.—No funding’’; and 
(B) by adding at the end the following: 
‘‘(B) 
TRANSIT-ORIENTED
DEVELOP-
MENT.— 
‘‘(i) PRE-AWARD ACQUISITION EXEMP-
TION.—The National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.) shall 
not apply to land acquisition activities 
prior to an application for assistance under 
the TIFIA program with respect to a tran-
sit-oriented development project, except for 
VerDate Sep 11 2014 
23:59 Jan 14, 2026
Jkt 069200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H7062.IH
H7062
ssavage on LAPJG3WLY3PROD with BILLS
components of the project located within 
the geographic boundaries of the parcel of 
land acquired that will be owned, in full or 
in part, by a public entity for the majority 
of the loan term. 
‘‘(ii) CATEGORICAL EXCLUSIONS.— 
‘‘(I) IN GENERAL.—A transit-ori-
ented development project that in-
volves an activity described in sub-
clause (II) shall be categorically ex-
cluded from the requirements of the 
National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.). 
‘‘(II) ACTIVITIES
DESCRIBED.— 
An activity referred to in subclause 
(I) is any of the following: 
‘‘(aa) Rehabilitation or con-
version of an existing office 
building to residential or mixed 
use within substantially the same 
footprint. 
‘‘(bb) Reconstruction or con-
struction of a new commercial 
building primarily using land dis-
turbed for transportation use as 
VerDate Sep 11 2014 
23:59 Jan 14, 2026
Jkt 069200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H7062.IH
H7062
ssavage on LAPJG3WLY3PROD with BILLS
described 
in 
section 
771.118(c)(9) of title 23, Code of 
Federal Regulations (or successor 
regulations), or disturbed land 
adjacent to land disturbed for 
transportation use.’’; 
(4) in subsection (d)(1)— 
(A) by striking ‘‘and to the maximum ex-
tent practicable’’; and 
(B) by striking ‘‘, to the maximum extent 
practicable,’’; 
(5) in subsection (e), by striking ‘‘section 
601(a)(2)(A)’’ and inserting ‘‘section 601(a)(3)(A)’’; 
and 
(6) by adding at the end the following: 
‘‘(f) OTHER REQUIREMENTS.—Transit-oriented de-
velopment projects and attainable housing projects as-
sisted under the TIFIA program, shall be subject to the 
standards of section 5333(a) of title 49, U.S. Code.’’. 
(d) SECURED LOANS.—Section 603 of title 23, 
United States Code, is amended— 
(1) in subsection (a)(3), by inserting ‘‘or an in-
vestment-creditworthiness assessment alternative, as 
applicable’’ after ‘‘602(b)(3)(B)’’; and 
(2) in subsection (b)— 
VerDate Sep 11 2014 
23:59 Jan 14, 2026
Jkt 069200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H7062.IH
H7062
ssavage on LAPJG3WLY3PROD with BILLS
(A) in paragraph (2)— 
(i) in subparagraph (A)— 
(I) by striking ‘‘subparagraph 
(B)’’ and inserting ‘‘subparagraphs 
(B) and (C)’’; and 
(II) 
by 
striking 
‘‘investment 
grade rating’’ and inserting ‘‘invest-
ment-grade rating or an investment- 
creditworthiness 
assessment 
alter-
native’’; and 
(ii) by adding at the end the fol-
lowing: 
‘‘(C) TRANSIT-ORIENTED
DEVELOPMENT 
PROJECTS.—The amount of a secured loan 
under this section for a transit-oriented devel-
opment project that contains a significant gen-
eral housing or attainable housing component 
(as determined by the Secretary) or involves a 
partnership with a transit agency, State, local 
government partner, or nonprofit financing en-
tity shall not exceed 75 percent of the reason-
ably anticipated eligible project costs.’’; 
(B) in paragraph (4)— 
VerDate Sep 11 2014 
23:59 Jan 14, 2026
Jkt 069200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H7062.IH
H7062
ssavage on LAPJG3WLY3PROD with BILLS
(i) in subparagraph (A), by striking 
‘‘subparagraphs (B) and (C)’’ and insert-
ing ‘‘subparagraphs (B), (C), and (D); and 
(ii) by adding at the end the fol-
lowing: 
‘‘(D) ATTAINABLE HOUSING PROJECTS.— 
The interest rate of a loan offered to an attain-
able housing project under the TIFIA program 
shall be at 1⁄2 of the Treasury Rate in effect on 
the date of execution of the loan agreement.’’; 
and 
(C) in paragraph (7)— 
(i) by striking ‘‘The Secretary’’ and 
inserting the following: 
‘‘(A) IN GENERAL.—The Secretary’’; and 
(ii) by adding at the end the fol-
lowing: 
‘‘(B) DISCLOSURE
OF
FEES.—The Sec-
retary shall develop and make publicly available 
a straightforward, scalable, and reasonable fee 
structure with respect to fees that may apply 
under this section. 
‘‘(C) GUIDANCE
ON
PROJECT
REQUIRE-
MENTS.—The Secretary shall develop and make 
publicly available guidance on eligibility require-
VerDate Sep 11 2014 
23:59 Jan 14, 2026
Jkt 069200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H7062.IH
H7062
ssavage on LAPJG3WLY3PROD with BILLS
ments for transit-oriented development projects, 
including guidance relating to— 
‘‘(i) minimum debt service coverage 
ratios by project type; 
‘‘(ii) maximum loan-to-cost and loan- 
to-value thresholds; and 
‘‘(iii) distribution covenants.’’. 
(e) LINES OF CREDIT.—Section 604(a)(4) of title 23, 
United States Code, is amended by inserting ‘‘or securing 
an investment-creditworthiness assessment alternative’’ 
after ‘‘rating agencies’’. 
(f) FUNDING.—Section 608(a) of title 23, United 
States Code, is amended— 
(1) in paragraph (4)— 
(A) by striking the paragraph designation 
and heading and all that follows through ‘‘de-
scribed in section 601(a)(12)(G)’’ in subpara-
graph (B), in the matter preceding clause (i), 
and inserting the following: 
‘‘(4) 
LIMITATION
FOR
AIRPORT-RELATED 
PROJECTS.—The Secretary may use to carry out 
projects described in section 601(a)(14)(G)’’; and 
(B) by redesignating clauses (i) and (ii) as 
subparagraphs (A) and (B), respectively, and 
indenting appropriately; and 
VerDate Sep 11 2014 
23:59 Jan 14, 2026
Jkt 069200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H7062.IH
H7062
ssavage on LAPJG3WLY3PROD with BILLS
(2) in paragraph (6), by striking ‘‘fiscal years 
2022 through 2026’’ and inserting ‘‘fiscal years 
2027 through 2031’’. 
(g) DELEGATED ORIGINATION AND UNDERWRITING 
PROGRAM FOR TOD PROJECTS.— 
(1) IN GENERAL.—Chapter 6 of title 23, United 
States Code, is amended by adding at the end the 
following: 
‘‘§ 612. Delegated origination and underwriting pro-
gram for TOD projects 
‘‘(a) IN GENERAL.—In carrying out the TIFIA pro-
gram, the Secretary shall establish a delegated origination 
and underwriting program for the purpose of providing 
credit assistance under the TIFIA program for transit- 
oriented development projects under which a qualified 
originator-servicer, acting on behalf of and under the over-
sight of the Secretary, carries out the origination, under-
writing, and servicing of loans and loan guarantees and 
lines of credit provided under the TIFIA program, includ-
ing assessments of creditworthiness for applicants and 
projects. 
‘‘(b) STRUCTURE.—The program under subsection 
(a) shall be based on the lender approval, quality control, 
and baseline creditworthiness standards established under 
VerDate Sep 11 2014 
23:59 Jan 14, 2026
Jkt 069200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H7062.IH
H7062
ssavage on LAPJG3WLY3PROD with BILLS
the Multifamily Accelerated Processing system established 
by the Department of Housing and Urban Development. 
‘‘(c) 
CREDITWORTHINESS.—Notwithstanding 
any 
other provision of law, a project that receives assistance 
under the program under subsection (a) shall not be re-
quired to have an investment-grade rating. 
‘‘(d) REGULATIONS.—Not later than 180 days after 
the date of enactment of this section, the Secretary shall 
promulgate regulations to carry out this section, includ-
ing— 
‘‘(1) requirements for qualified originators- 
servicers to assume responsibilities of the Secretary 
under the TIFIA program with respect to origina-
tion, underwriting, and servicing, including require-
ments that a qualified originator-servicer shall— 
‘‘(A) originate, underwrite, and service a 
loan under the TIFIA program for the life of 
the loan; 
‘‘(B) be in good standing with, and not 
have been assessed any fine related to lending 
activity by the Department of Housing and 
Urban Development during the previous 5 
years; and 
‘‘(C) demonstrate expertise in providing fi-
nancing for a variety of project types that align 
VerDate Sep 11 2014 
23:59 Jan 14, 2026
Jkt 069200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H7062.IH
H7062
ssavage on LAPJG3WLY3PROD with BILLS
with projects described in subsection (a), such 
as commercial and mixed use projects; 
‘‘(2) 
procedures 
for 
qualified 
originators- 
servicers to assess creditworthiness; 
‘‘(3) oversight procedures; and 
‘‘(4) other provisions necessary for the imple-
mentation of this section. 
‘‘(e) INTERAGENCY AGREEMENT.—In carrying out 
this section, the Secretary shall enter into an interagency 
agreement with the Secretary of Housing and Urban De-
velopment— 
‘‘(1) to assist the Secretary in leveraging lend-
ers and lender approval processes used in the Multi-
family Accelerated Processing system established by 
the Department of Housing and Urban Develop-
ment, including by helping to develop an expedited 
path to approval as a qualified originator-servicer 
under this section for lenders operating under that 
section; and 
‘‘(2) to provide guidance and assistance to the 
Secretary on ways, through the use of this section— 
‘‘(A) to reduce the overall processing time 
and administrative burden required to deliver 
credit assistance under the TIFIA program; 
and 
VerDate Sep 11 2014 
23:59 Jan 14, 2026
Jkt 069200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H7062.IH
H7062
ssavage on LAPJG3WLY3PROD with BILLS