HB7298 converts the current transit‑oriented development (TOD) pilot into a permanent grant program, widens eligible projects to include fixed‑guideway bus rapid transit and corridor investments in existing systems, and explicitly funds predevelopment activities such as site evaluation, engineering design, utility coordination, and community engagement. The bill also directs the program to finance access improvements for people with disabilities, seniors, veterans, and other transit‑dependent populations, specifying paratransit connectivity and bicycle infrastructure as programable activities.
The legislation matters because it makes federal support for TOD planning more flexible and better resourced: it both enlarges what counts as an eligible project and creates a five‑year, $75 million per‑year authorization (FY2027–2031) above existing formula funds. For transit agencies, MPOs, local planners and developers this rewrites the menu of grant‑funded planning work they can seek federal help to complete — and it raises new coordination and equity questions that local implementers will need to address during project selection and delivery.
At a Glance
What It Does
The bill amends the Federal Public Transportation Act to rename the TOD pilot as a grant program, add fixed‑guideway BRT and corridor‑based capital investments to eligible projects, expand the statutory list of predevelopment activities, and require grants to support accessibility and last‑mile connections. It authorizes $75 million annually for FY2027–2031 in addition to amounts available under section 5338.
Who It Affects
Metropolitan planning organizations, transit agencies (including those operating BRT and existing fixed‑guideways), local planning departments, developers pursuing TOD sites, and disability and bicycle advocates are directly affected. Federal transit grant administrators at DOT/FTA will absorb program administration changes.
Why It Matters
This bill changes which proposals qualify for federal TOD planning dollars and adds a dedicated, multi‑year authorization that can seed development‑ready sites. It shifts the federal role from narrowly backing big capital starts to underwriting the preparatory work and accessibility upgrades that make TOD projects shovel‑ready and inclusive.
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What This Bill Actually Does
HB7298 restructures the existing transit‑oriented development planning authority into a formal grant program and expands what planning activities and project types the federal government will help pay for. Rather than limiting support to new fixed‑guideway capital starts or core capacity projects, the bill explicitly permits planning tied to fixed‑guideway bus rapid transit projects and corridor‑based capital investments in existing fixed‑guideway systems.
That opens the program to improvements along established corridors — for example, platform upgrades, station area retrofits, or corridor signal improvements that enable TOD around existing rail lines.
The bill clarifies and enlarges what counts as 'predevelopment activities.' In addition to traditional planning, applicants can receive grant funds for site evaluation, engineering and architectural design, community engagement, feasibility studies, utility coordination, and accessibility assessments. Those inclusions recognize that readiness work often involves engineering and utility work that federal planning dollars historically did not cover, so applicants can use grant money to resolve technical barriers that block private development.HB7298 also adds an explicit equity and access dimension: applicants may be funded to improve access for people with disabilities, seniors, veterans, and other transit‑dependent riders, and the statute names paratransit connectivity and bicycle infrastructure as allowable investments.
Finally, the bill creates a dedicated authorization of $75 million per year for five years (FY2027–2031), described as additive to section 5338 funds, and it transfers the statutory language into section 5303 of title 49 to place the program alongside other metropolitan planning provisions.Taken together, the changes nudge federal TOD support away from a narrow pilot focused on major new capital projects and toward a broader planning‑and‑predevelopment toolkit that can remove barriers to development and improve multimodal access around stations. That makes it easier for agencies to apply for federal help to prepare parcels and rights‑of‑way for transit‑adjacent housing and commercial development, but it also increases the scope of what FTA and local partners must coordinate to deliver successful, equitable outcomes.
The Five Things You Need to Know
The bill converts the TOD 'pilot program' into a permanent 'grant program' by amending the subsection formerly codified at 49 U.S.C. 5303 note and transferring it to 49 U.S.C. 5303(s).
It adds fixed‑guideway bus rapid transit and 'corridor‑based capital investments' in existing fixed‑guideway systems to the statutory definition of eligible projects.
The statute expands 'predevelopment activities' to explicitly include site evaluation, engineering and architectural design, community engagement, feasibility studies, utility coordination, and accessibility assessments.
The program's purposes now include funding to improve access for people with disabilities, seniors, veterans, and other transit‑dependent populations, specifically citing paratransit connectivity and bicycle infrastructure.
Congress authorizes $75,000,000 per year for FY2027 through FY2031 to carry out the program, expressly 'in addition to any amounts appropriated under section 5338.'.
Section-by-Section Breakdown
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Short title
Provides the Act's short title: 'Connecting Communities Through Transit Planning Act of 2026.' This is a technical caption but signals the bill's focus: linking planning dollars to community access and connectivity.
From 'Pilot Program' to 'Grant Program'
Strikes the statutory heading 'PILOT PROGRAM' and replaces it with 'GRANT PROGRAM.' That change is more than cosmetic: it removes the implication of temporary testing and treats TOD planning support as a standing, grantable federal program within the metropolitan planning framework once enacted.
Broadened project types: BRT and corridor investments
Replaces the previous narrow definition of eligible projects (new fixed‑guideway capital or core capacity projects) with a list that includes new fixed guideways, fixed‑guideway bus rapid transit projects, and corridor‑based capital investments in existing fixed‑guideway systems. Practically, applicants can link planning grants to upgrades along existing corridors and to BRT projects that use fixed guideway elements, expanding the program's reach beyond large rail starts.
Adds engineering, utility coordination, and accessibility to allowable planning work
Recasts 'predevelopment activities' to include technical and engagement tasks—site evaluation, engineering/architectural design, utility coordination, feasibility studies, community engagement, and accessibility assessments. This gives applicants statutory authority to use grant funds for work that clears physical and regulatory obstacles to development, rather than only high‑level planning studies.
New stated purposes (predevelopment & access) and five‑year authorization
Inserts explicit program purposes to support predevelopment activities and to improve access to transit and TOD sites for seniors, people with disabilities, veterans, and other transit‑dependent populations, naming paratransit and bicycle infrastructure. The bill also adds a new authorization provision: $75 million per fiscal year for FY2027–2031, identified as additional to section 5338 appropriations, and transfers the statutory subsection into section 5303(s) to align with metropolitan planning law.
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Explore Transportation in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- Local governments and MPOs — They can request federal grant funds for technical site work (engineering, utility coordination) that make parcels development‑ready and integrate station areas into broader planning efforts.
- Transit agencies (including BRT operators) — Expanded project eligibility and program emphasis on corridor investments helps agencies fund planning tied to system upgrades and station area access improvements.
- Private developers and affordable housing proponents — Grants that finance predevelopment reduce early‑stage risk, lowering the cost and time to assemble TOD projects and making sites more attractive to private investment.
- People with disabilities, seniors, veterans, and transit‑dependent riders — The statute explicitly prioritizes funding to improve accessibility and connectivity (including paratransit links and bike infrastructure), which can increase station usability for these groups.
- Active‑transportation advocates and local bike/ped planners — The inclusion of bicycle infrastructure and last‑mile connectivity as grant‑eligible activities creates a new federal source to fund multimodal station area improvements.
Who Bears the Cost
- Federal Transit Administration / DOT — The agency will administer a larger, more complex program and must integrate new eligibility rules into grant guidance and selection processes, increasing administrative workload.
- Local governments and transit agencies — While the bill authorizes funding, implementation will likely require local match, staff time, and coordination across utilities and right‑of‑way owners to realize predevelopment work and deliver capital follow‑on projects.
- Paratransit and local mobility providers — They will be expected to coordinate on connectivity improvements and may face service adjustments or expanded routing obligations to realize the access goals.
- Underserved residents near planned TOD — Faster site preparation and increases in private development interest create a real risk of displacement and rising housing costs unless jurisdictions pair planning with anti‑displacement measures.
- Small jurisdictions and rural transit operators — The broadened scope and likely competition for funds could advantage larger metropolitan areas with project pipelines and grant‑writing capacity, making it harder for smaller entities to secure awards.
Key Issues
The Core Tension
The central dilemma is that the bill pushes federal resources toward making sites shovel‑ready and increasing multimodal access — which can accelerate housing and ridership gains — while expanding eligible project types and technical uses of funds in ways that may dilute resources, privilege large metro applicants, and worsen displacement risks unless paired with stringent equity and oversight measures. Policymakers must choose between broad flexibility to clear development barriers quickly and tight rules intended to target limited funds to community‑centered outcomes.
The bill broadens both the types of projects and the activities eligible for federal TOD planning dollars, which increases flexibility but creates several implementation puzzles. 'Corridor‑based capital investment' is not defined in detail; FTA will need to write guidance to distinguish between eligible corridor upgrades and ordinary maintenance or local street projects, and those definitions will determine which proposals compete effectively for limited funds. Likewise, the expanded list of predevelopment activities puts engineering and utility coordination into the planning bucket—but those technical tasks can be costly and may require clear cost‑allocation rules to prevent grant funds from being absorbed by right‑of‑way remediation rather than making parcels development‑ready.
The authorization of $75 million per year is helpful on paper but does not guarantee appropriations, and the bill says these amounts are 'in addition to' section 5338 without clarifying whether Congress should treat the program as supplementing or supplanting existing metropolitan‑planning allocations. That ambiguity matters because recipients will plan multi‑stage work that expects continuity of federal support.
The statute also expands equity‑oriented language (access for disability, seniors, veterans, transit‑dependent riders) but does not set measurable standards, compliance mechanisms, or anti‑displacement requirements. Localities that pursue TOD with these grants will face political and logistical choices about whether to pair site readiness with affordable housing covenants, relocation assistance, or community benefits — choices the bill leaves to states and localities.
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