The Build More Housing Near Transit Act of 2025 would amend the federal transit capital investment grant program under section 5309 of title 49, U.S. Code, to give added consideration to projects located in areas with “pro-housing policies.” The bill defines pro-housing policies as state or local actions that reduce regulatory barriers to housing construction or preservation, including affordable housing, such as reducing parking minimums, allowing by-right multifamily approval under objective standards, reducing minimum lot sizes, increasing allowable height or density, or dedicating public land to housing.
Under the bill, the Secretary of Transportation could increase a project’s justification rating by one point on the existing five-point scale if the applicant documents pro-housing policies in areas within walking distance of, and accessible to, transit facilities along the project route. The Secretary would have to consult with the Secretary of Housing and Urban Development to develop a methodology for evaluating the expected housing production and preservation effects of those policies, including affordable units below area median income. The bill also requires public reporting on projects that receive this rating adjustment and the housing outcomes expected from the policies.
Impact
The bill would not directly change housing law or zoning rules at the federal level, but it would alter how transit capital investment grants are evaluated by the U.S. Department of Transportation. In practice, it would create a federal incentive for states and local governments to adopt zoning and land-use reforms that support housing development near transit, and it would require grant applicants to document those reforms and their expected housing effects. The affected statute is section 5309 of title 49, U.S. Code, which governs capital investment grants for transit projects.
Sentiment
No committee transcript or recorded vote is available, so there is no direct evidence of debate or formal support/opposition in the provided materials. Based on the bill text and title, the measure appears to be framed as a housing-supply and transit-oriented development incentive, suggesting a policy goal of encouraging more housing near transit corridors. The introduction by Senators Schatz and Banks indicates bipartisan sponsorship, which may signal an effort to build cross-party support around housing affordability and infrastructure efficiency.
Contention
The main likely point of contention is whether the federal government should reward transit projects based on local land-use and zoning policies, rather than only on transportation criteria. Supporters are likely to argue that the bill encourages housing production, reduces regulatory barriers, and better aligns transit investment with housing demand. Critics may object that it pressures local land-use decisions, favors deregulation such as reduced parking minimums and higher density, or could complicate transit grant scoring by tying it to housing-policy judgments and projected housing outcomes.