New Starts Program Guidance on Project Justification Criteria and Land Use Factors

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Stop Wasting Transit Dollars Where Riders Can’t Afford to Live

AKA “Hold Cities Accountable for Transit Waste”


Which agency/agencies promulgated the regulation? *
U.S. Department of Transportation (DOT) Federal Transit Administration (FTA)
Which title, parts, and/or sections of the Code of Federal Regulations (C.F.R.) should be rescinded? *
• 49 CFR § 611.7 — Project justification and local financial commitment • 49 CFR § 611.21 — Fixed Guideway Capital Investment Grants (“New Starts” program) Specifically: rescind or revise DOT’s interpretive posture that treats local land use—including exclusionary zoning—as fixed and untouchable in funding assessments. Require inclusionary zoning or housing access analysis as a scoring factor for transit project grants.
What is your name?
—OPTIONAL--
Is your proposed rescission a notice of proposed rulemaking, final rule, direct final rule, interim final rule, or interpretive rule? *
Notice of Proposed Rulemaking
What is the name of the regulation being rescinded, if applicable? *
New Starts Program Guidance on Project Justification Criteria and Land Use Factors
Please provide a short summary of the justifications for the rescission. *
The federal government spends billions on new transit infrastructure—yet allows local zoning to prevent homes near those investments. In many cities, exclusionary land use rules ban multi-family housing near stations or restrict affordability. DOT currently defers to these decisions in New Starts scoring. Rescinding this deference would allow the agency to prioritize projects that actually serve people—not parking lots.
Please insert the address of the agency. [NPRM, DFR, and IFR only]
U.S. Department of Transportation 1200 New Jersey Avenue SE Washington, DC 20590
Please insert the contact information for the agency. *
DOT: (202) 366-4000 Email: transit.policy@dot.gov
What is the background for the regulation being rescinded? *
49 CFR Part 611 outlines how DOT evaluates large-scale transit investments. While it includes land use as a criterion, it treats existing zoning as static, and rewards “supportive” planning without requiring housing access or inclusion. As a result, high-capacity transit is routinely funded in areas that ban the very people transit is meant to serve. This undermines ridership, equity, and climate goals—and entrenches high-cost development patterns.
Explain the reasons for the rescission. *
When local governments accept federal transit dollars but use zoning to block access to housing near those projects, they’re wasting public money. Exclusionary zoning near transit stations drives up housing prices, undercuts climate resilience, and reinforces segregation. DOT has the authority—and obligation—to score projects based on whether they support housing access. Rescinding the current deference would make transit funding accountable to people, not just plans.
Describe the text of the relevant C.F.R. provisions as it will exist after the rescission. *
• 49 CFR § 611.7 would be amended to require that project justification criteria include a housing accessibility and zoning inclusion score. • 49 CFR § 611.21 would clarify that projects serving exclusionary land use patterns may receive reduced scoring or require corrective action plans to remain eligible for New Starts or Small Starts funding.
Please insert the name of the current agency head. *
Secretary of Transportation
Please insert the title of the agency head. *
Secretary of Transportation

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