Federal grants for transit and affordable housing, with wage protections and performance accountabil
H.R. 10019 — Incentivizing Value Capture for Greener Transportation Act · Filed by Mark DeSaulnier (D-CA) · Introduced Aug 3, 2026 · Referred to committee
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What it does
This bill creates a federal grant program to help states and local governments develop 'value capture' policies—mechanisms that recoup some of the increased property and business value created by public transit investments and use that revenue to fund more transit and affordable housing. Grantees must maintain prior funding levels, meet performance benchmarks (increased ridership, reduced emissions), pay prevailing wages on construction, and report results within three years.
Why we flagged it
The bill's operative mechanism is a federal grant program tied to value-capture policy development, with mandatory performance benchmarks, wage protections, and maintenance-of-effort requirements. It is a public-investment and accountability measure, not a deregulation, carve-out, or private subsidy.
What the text implies
- Value capture mechanisms may increase property taxes or development fees in gentrifying neighborhoods, potentially accelerating displacement of lower-income residents if affordable-housing protections are not robustly enforced at the local level.
- The bill requires grantees to maintain prior funding levels, but does not prevent states/localities from reducing overall transit budgets and then applying for federal grants to backfill—creating a moral-hazard incentive for cost-shifting.
The full analysis lists 4 implications of this text.
Who stands to gain
Transit agencies and local governments (grant recipients); Construction contractors and workers (Davis-Bacon wage floor); Real estate developers (if value capture mechanisms incentivize development)