Sponsor
Mark James Desaulnier
Representative · D-CA
Representative · D-CA
Official title: To amend title 23, United States Code, to modify the transportation finance infrastructure and innovation program with respect to community development financial institutions, and for other purposes.
Introduced April 30, 2026 by Mark James Desaulnier · Last progress April 30, 2026
The bill channels targeted federal credit through CDFIs to expand affordable, transit‑oriented projects in underserved communities by reducing access barriers and protecting borrowers, but it limits the program's scale and introduces execution timelines and credit‑risk tradeoffs that could delay projects and raise taxpayer exposure.
Low-income and urban communities gain increased, targeted financing for transit‑oriented development (TOD) near transit stops, supporting affordable housing and community facilities.
Community Development Financial Institutions (CDFIs) can access TIFIA-type credit using Treasury certification rather than costly credit ratings, lowering transaction costs and expanding lender participation for smaller or underserved projects.
More federal credit is reserved for transit projects through a dedicated set‑aside and CDFIs may relend repayments, which can multiply the impact of each federal dollar to support multiple local projects in underserved areas.
Requiring CDFIs to execute loan agreements within two years before drawing funds could delay project financing and increase execution risk for project sponsors, potentially slowing or jeopardizing some developments.
Relying on Treasury certification and CDFI promissory obligations as credit support (instead of market ratings) could increase federal credit risk if underwriting is less stringent, exposing taxpayers to greater potential losses.
Based on analysis of 2 sections of legislative text.
Allows certified CDFIs to capitalize TOD accounts and participate in federal transportation credit programs with revised eligibility, collateral, and timing rules.
Allows certified community development financial institutions (CDFIs) to capitalize special Transit‑Oriented Development (TOD) accounts and to participate in certain federal transportation credit programs by changing eligibility, collateral, and program rules. The bill creates a new CDFI TOD account definition, permits the Secretary to accept Treasury credit assessments for CDFIs, sets a $100 million eligible cost cap for TOD projects using these accounts, and treats unconditional CDFI promissory obligations as acceptable collateral. Also adds CDFI‑specific procedures in the TIFIA/credit statute, including a two‑year demonstration window to execute project loan agreements after loan obligation and provisions deeming that CDFI assistance generates “beneficial effects.” These changes expand who may receive federal credit support and modify collateral and timing rules to encourage CDFI participation in transit‑oriented development financing.