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Government Funding for Transit-Oriented Development

Apr/May 09
Transit-oriented development (TOD) can be supported by funding through a variety of federal and state programs, often funded in part by federal apportionment. Beyond the "hard construction" and infrastructure dollars available for a transit project, TOD joint development that may be eligible for funding include:

design, engineering, and environmental analyses, estimates and funding negotiations;

land acquisition, relocation, demolition, and site preparation, including brownfield reclamation;

foundations and substructure improvements for buildings over transit;

open space, pedestrian connections, and access links between transit services and related new or existing development;

facilities and infrastructure investments attracting private investment;

safety and security equipment and facilities;

facilities incorporating community services, including day care or healthcare; and

parking that supports public transit.

The Department of Transportation and the Federal Transit Administration are the main sources of federal transportation-related funds directed to the states.

The Departments of Housing and Urban Development and the Economic Development Agency have funding programs that can be applied to TOD.

The American Recovery and Reinvestment Act focuses on existing programs and provides additional funding for programs that support TOD projects. For infrastructure, the plan announced $27 billion in funds apportioned to and administered by the states.

As of March 3rd, the states had 120 days to assign the funds to specific projects. To see a state-by-state funding allocation, visit

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