Sponsor
Mark James Desaulnier
Representative · D-CA
Representative · D-CA
The bill directs substantial federal resources and new financing tools toward low‑carbon transportation, transit‑oriented development, and worker transition programs—boosting infrastructure, jobs, and equity while increasing project costs, administrative complexity, and potential local fiscal burdens.
State, local, tribal governments and MPOs gain new federal grants, technical assistance, and financing tools to build and finance multimodal, lower‑carbon transportation corridors and transit‑oriented development (transit, high‑speed rail, bike/ped, Smart Cities), expanding travel options and reducing vehicle emissions.
Workers in fossil‑fuel sectors and other displaced workers get funded retraining, apprenticeships, employer placements, and competitive grants to plan transitions, improving chances to move into EVs, renewables, remediation and manufacturing careers.
Funded projects must follow federal labor standards (Davis‑Bacon and related requirements), protecting wages and work conditions for construction and service workers on these transportation and development projects.
State/local governments and taxpayers face higher project and program costs because Buy‑America rules, Davis‑Bacon wages, collective bargaining requirements, domestic sourcing, and Corps funding tend to raise procurement and labor expenses.
Complex compliance, reporting, certification, and waiver procedures (Buy‑America definitions, Federal Register waiver justification, Treasury certification, coalition/consultation requirements) will increase administrative burden and can delay project delivery.
Homeowners and local taxpayers could face higher property tax assessments or redirected tax‑increment revenues (TIF/dedicated assessed value) to pay for transit and development projects, shifting local cost burdens.
Based on analysis of 4 sections of legislative text.
Authorizes DOT low-carbon corridor grants, a federal value-capture/TIF program with new transit-oriented bond authority, and labor-led community transition grants for fossil-fuel workers.
Official title: To incentivize innovative transportation corridors to reduce carbon and GHG emissions, to provide a tax structure that allows for certain investments in public transportation systems, and to enable the fossil fuel workforce to transition to sustainable work sectors.
Introduced December 23, 2025 by Mark James Desaulnier · Last progress December 23, 2025
Creates a Department of Transportation grant program to fund multi-modal, low-carbon transportation corridors and requires Buy American and federal labor compliance for recipients. Adds a federal value-capture / transit-oriented development (TIF) program with a new qualified transit-oriented development private activity bond category and technical assistance from DOT/Treasury, and establishes Labor/Energy community transition grants to help fossil-fuel workers and communities move into sustainable industries.