NO TOD Act
- Sponsor
- Rep. Perry, Scott [R-PA-10]
- Committees
- Transportation and Infrastructure Committee (primary)
- Last action
- Apr 9, 2026
Bottom line
The bill aims to restrict federal financial support for commercial or residential projects associated with transit infrastructure by amending existing transportation finance laws.
What it actually does
This bill, known as the 'NO TOD Act,' amends titles 23 and 49 of the United States Code to eliminate transit-oriented development (TOD) projects from eligibility for federal financial assistance. Specifically, it removes TOD projects from the Transportation Infrastructure Finance and Innovation Act (TIFIA) program and the Railroad Rehabilitation and Improvement Financing (RRIF) program, and also repeals a related TOD planning pilot program.
Proponents argue
Proponents would argue that this bill ensures federal transportation funds are focused solely on core transportation infrastructure, preventing their diversion to commercial or residential real estate developments. They might contend that TOD projects should be funded by private investment or local initiatives, not federal transportation dollars, and that removing these eligibility categories streamlines federal programs to their original intent.
Opponents contend
Opponents would argue that transit-oriented development is a crucial strategy for promoting sustainable communities, reducing reliance on single-occupancy vehicles, and maximizing the economic benefits of public transit investments. They would contend that removing federal financial support for TOD projects would hinder smart growth, affordable housing initiatives, and economic development around transit hubs, ultimately undermining the effectiveness of federal transportation spending and leading to less integrated community planning.
The bill is very short and directly amends specific sections of code, making it highly accessible for a reader to understand its provisions and implications in a short amount of time.
Section 2(a), (b), (c) of H.R. 8230, amending Section 601(a)(12), 602(a), and 608(a)(4) of title 23, United States Code
Removal of Transit-Oriented Development from TIFIA Program Eligibility
This provision explicitly removes transit-oriented development (TOD) projects from being eligible for assistance under the Transportation Infrastructure Finance and Innovation Act (TIFIA) program. It strikes existing language that included TOD projects and adds a new paragraph specifying that TOD projects, defined as those designed for commercial or residential use, are ineligible. This means federal low-interest loans and loan guarantees through TIFIA would no longer be available for such developments.
Supporters argue
Proponents argue that TIFIA funds should be reserved for core transportation infrastructure projects, such as roads, bridges, and transit lines, rather than commercial or residential real estate developments. They contend that private markets or local funding mechanisms are more appropriate for financing TOD components, ensuring federal dollars are not diverted from their primary purpose.
Critics contend
Opponents contend that TOD projects are integral to maximizing the public benefit of transportation investments by creating walkable, mixed-use communities that reduce traffic congestion and promote sustainable growth. They argue that removing TIFIA eligibility will make it harder to finance these beneficial projects, leading to less efficient land use around transit hubs and hindering regional economic development.
Tradeoffs
This provision balances the desire to focus federal transportation funds strictly on infrastructure against the goal of promoting integrated community development that leverages transit investments. It trades off potential federal financial leverage for TOD against a more narrow application of transportation funding.
Section 3(a) of H.R. 8230, amending Section 22402 of title 49, United States Code
Removal of Transit-Oriented Development from RRIF Program Eligibility
This provision amends the Railroad Rehabilitation and Improvement Financing (RRIF) program to remove transit-oriented development projects from its list of eligible projects. It specifically strikes language that allowed RRIF loans to 'increase transit-oriented development,' thereby preventing federal direct loans or loan guarantees from being used for such purposes in the context of railroad infrastructure projects. This change applies to all applications submitted on or after the bill's enactment date.
Section 4 of H.R. 8230, amending Section 20005 of MAP-21 (49 U.S.C. 5303 note; Public Law 112-141)
Elimination of Transit-Oriented Development Planning Pilot Program
This provision repeals subsection (b) of Section 20005 of MAP-21, which established a Transit-Oriented Development Planning Pilot Program. This program provided federal support for planning activities related to TOD. Its elimination means that federal funding and support for such dedicated planning initiatives would cease, removing a specific mechanism designed to encourage and facilitate integrated transit and land-use planning.
This subsection defines 'transit-oriented development project' as 'a project or components of a project designed for commercial or residential use.' This broad definition is crucial because it determines the scope of projects that become ineligible for TIFIA assistance.
Section 2(b)(2)(B) of H.R. 8230, amending Section 602(a) of title 23, United States Code
Why it matters:The placement is standard legislative practice for defining terms relevant to a new restriction. However, its breadth is notable and could be overlooked.
Case for: Proponents would argue that a clear and broad definition is necessary to ensure that federal funds are not indirectly used for any commercial or residential components, regardless of their proximity or relationship to transit infrastructure, thereby preventing circumvention of the bill's intent.
Case against: Opponents might argue that this definition is overly broad, potentially excluding projects that have legitimate public benefits and are closely integrated with transit, such as mixed-use developments that include affordable housing or essential services alongside transit facilities. They might contend it could stifle innovative development models.
Estimated impact: This definition significantly narrows the scope of projects that can receive TIFIA assistance, potentially impacting a wide range of urban and suburban development initiatives that incorporate commercial or residential elements near transit.