HR8230

On April 9, 2026, Representative Scott Perry (R-PA) introduced HR 8230, the "Negating Obligations for Transit-Oriented Developments Act" or "NO TOD Act." The bill would amend Title 23 and Title 49 of the U.S. Code to remove transit-oriented development projects — defined as projects or components designed for commercial or residential use — from eligibility for assistance under the Transportation Infrastructure Finance and Innovation Program (TIFIA) and the Railroad Rehabilitation and Improvement Financing (RRIF) program. These are federal credit programs offering low-interest, long-term loans (up to 35 years for TIFIA, up to 35 for RRIF) to infrastructure projects with eligible sponsors. The bill was referred to the House Committee on Transportation and Infrastructure, its only action to date. No companion bill has been introduced in the Senate. As an early-stage bill introduced by a junior committee member, legislative momentum is low to moderate; the 119th Congress has over 18 months remaining, but major transportation reauthorizations are not imminent. The money trail: HR 8230 does not authorize or appropriate any funds. It removes eligibility from existing programs. Both TIFIA and RRIF are federal credit programs — they provide direct loans and loan guarantees, not grants. The TIFIA program has approximately $1 billion in annual budget authority for credit assistance, supporting projects up to $300 million in eligible costs (surface transportation) and higher for larger projects with DOT approval. RRIF has up to $35 billion in total loan capacity. Removing TOD eligibility does not reduce federal spending; it redirects program capacity to remaining eligible categories (highway, bridge, transit, rail freight, intermodal, pipeline, etc.). The Congressional Budget Office would likely score this as negligible deficit impact since federal credit subsidies are recorded at net present value of defaults. Structural winners and losers: The losers are developers and real estate companies that rely on TOD-focused federal credit. Pure-play homebuilders NVR, Lennar, and PulteGroup occasionally use TIFIA for transit-adjacent projects in large master-planned communities with rail stations; however, none of these companies depend on federal credit programs for their core business — they use conventional construction loans and corporate credit lines. The actual impact on their earnings is minimal. The more exposed market segment is municipal transit agencies and joint development authorities that bundle TOD with station improvements. Public transit agencies that own land around stations and partner with private developers face the highest practical impact. The winners are traditional infrastructure borrowers in the RRIF program: railroads (rail freight carriers like Union Pacific and Norfolk Southern are not public pure-plays on this specific program; KMI's pipeline projects with rail components could see marginally less competition for RRIF loan authority). The Presidential Memoranda of April 20, 2026, invoking the Defense Production Act for grid, natural gas, coal, and petroleum infrastructure are completely unrelated to HR 8230 — they target energy supply chains via DPA Title III, not transportation credit programs. No amplification or conflict exists. Timeline: The bill requires passage by the House Transportation Committee, then the full House, then Senate Banking/Commerce committees and full Senate, then presidential signature. With no Senate companion and no hearings scheduled, the probability of enactment in the 119th Congress is low (estimated <15%). The DPA executive actions on energy infrastructure (April 20) are separate and have accelerated timelines for supply chain investment (90-180 days for feasibility studies), but do not interact with HR 8230's legislative path.