This bill establishes the Enhanced Transit Village Program within the Office of Planning Advocacy in the Department of State, with support from the Department of Transportation (DOT). The program aims to incentivize mixed-use development near public transportation hubs, utilizing smart growth principles to enhance community planning and land use. The Office of Planning Advocacy will oversee the selection of municipalities that apply to participate in the program and assist them with necessary planning and zoning assessments. The DOT will manage the transportation infrastructure components, including grants and guidance for municipalities to improve their transportation systems in alignment with the program's goals.

The program will provide technical assistance and financial support to enhance the quality of public spaces, increase walkability and bikeability, and diversify housing options within designated enhanced transit villages. It mandates that municipalities meet specific smart growth criteria when applying, including a requirement for 30% of residential units to be affordable housing. The program will be funded through an initial allocation of $50 million from the Transportation Trust Fund Account for its first three years, with provisions for annual adjustments. Additionally, enhanced transit village projects will receive priority for affordable housing funds to help meet the program's housing goals.