CHARGE Act Expands Federal Loans for Housing and Commercial Projects Near Rail Transit Stations

The newly proposed Catalyzing Housing and American Ready Growth and Expansion Investments Act, or CHARGE Investments Act, is looking to shift how federal money funds development near transit hubs. Specifically, this bill modifies an existing loan program (under 40 U.S.C. 22402(b)) to allow federal direct loans and loan guarantees to finance economic development—meaning commercial buildings, residential housing, and the necessary infrastructure to support them—if they are located right next to fixed rail transit.

The Transit-Oriented Development Sweet Spot

This isn't funding for just any construction project. The bill lays out tight geographic rules for what qualifies for this federal financing. To get a piece of the pie, a project must be physically connected to, or sit within a quarter mile (1/4 mile) of, a fixed transit station that uses rail or overhead wires (a fixed catenary system). Think of high-density housing or office space being built right on top of a subway or light rail stop. This approach aims to boost Transit-Oriented Development (TOD), encouraging people to live closer to public transport and potentially reducing reliance on cars.

The Downtown Core Catch

Here’s where it gets specific. The bill excludes projects that are closer than two miles from a “Downtown Core” that doesn't have intercity passenger rail service (like Amtrak). What’s a Downtown Core? The bill defines it as the area with the highest concentration of jobs or office space, officially labeled as a “central business district” or “urban core” by local planners. This rule seems designed to push federal investment away from smaller or isolated downtowns and towards major metropolitan areas that already have robust transit connections.

Skin in the Game: The Private Investment Rule

If a developer wants to use this federal financing, they can’t rely on Uncle Sam for everything. The bill requires that the project must show that private investment makes up more than 20 percent of the total cost. This is a crucial detail because it ensures the federal government is acting as a financial partner, not the sole backer, which spreads the risk and incentivizes projects that are already economically viable.

Intercity Rail Exception

There’s a special rule for projects near intercity passenger rail stations (like Amtrak). If that station isn't located inside the designated Downtown Core, the eligibility radius is extended to the nearest Downtown Core, provided it's within two miles of the station. The catch? There must be public transportation connecting the intercity rail station to that downtown location. This means a project could qualify even if it’s a bit further out, as long as there’s a clear, public transit path for people to get from the development to the main rail terminal.

What This Means for Everyday Life

For most people, the CHARGE Act translates into more dense, mixed-use housing and commercial spaces popping up right next to rail lines. If you live in a qualifying metro area, this could mean new apartments, shops, and restaurants within a few minutes' walk of your commute. For developers and municipalities, this opens up a new, targeted stream of federal funding for projects that meet these strict location criteria. However, if your community doesn't have fixed rail transit or a designated Downtown Core with intercity rail, this particular federal financing tool isn't going to help fund your local development projects.