Congress Has Chance to Address Housing and Transportation Crises

Updating transportation funding formulas to reward housing growth could help solve both issues simultaneously.

Published on Feb. 16, 2026

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The article argues that Congress has an opportunity to address the housing and transportation crises by updating transportation funding formulas to reward housing growth, prioritizing projects that increase access to opportunities, and making infrastructure projects more cost-effective. The authors suggest that federal transportation dollars should flow to places that allow new housing production and population growth, and that transit investments should be tied to allowing more housing near transit.

Why it matters

Housing and transportation together consume nearly half of the typical household budget, yet Washington continues to treat them as separate problems. Addressing the cost-of-living crisis requires an integrated approach to housing and transportation policy.

The details

The article proposes three key actions for Congress: 1) Reward housing growth with transportation money by updating funding formulas to benefit states and urban areas that are allowing new housing production; 2) Encourage data-driven project prioritization by requiring states to set up scoring systems for transportation projects based on factors like access to jobs and opportunities; and 3) Make infrastructure projects cheaper and more efficient by addressing the high costs of American infrastructure compared to other developed countries.

  • Congress is considering the surface transportation reauthorization this year, which happens once every five years at best.

The players

Niskanen Center

A nonpartisan think tank that promotes free markets, limited government, and individual liberty.

Rohan Aras

A senior transportation policy analyst at the Niskanen Center.

Andrew Justus

A housing policy analyst at the Niskanen Center.

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What they’re saying

“Expanding access to opportunity will require both building new transportation infrastructure and allowing people to live nearby.”

— Rohan Aras, Senior Transportation Policy Analyst (thehill.com)

“Transit investments are uniquely suited to both support and themselves benefit from increased infill housing growth.”

— Andrew Justus, Housing Policy Analyst (thehill.com)

What’s next

Congress is expected to consider the surface transportation reauthorization package, which could include the 'Build More Housing Near Transit' legislation, in the coming months.

The takeaway

By integrating housing and transportation policy, Congress has an opportunity to address the intertwined crises of housing affordability and transportation access, ultimately improving quality of life and economic opportunity for American families.