It is scientifically proven that high quality public transport, and especially train services, improves the lives of people and improves the economy.
Money spent on food is a total waste. No matter how much food you buy for people, they will eat all of it and will ask for more. Simply because you need to eat every day of your life.
This is also true for housing to some extent, as populations generally tend to grow over time, thus more and more houses will always be needed no matter how much you have built already. But houses take a lot more time to run out of as you don’t need a new house every day, only once every few years when the population increases.
But you can build a good railway system in the area once and then people will use it to earn their own money, to pay for their food themselves and to buy their own homes themselves. And they will also pay for railway maintenance and bring profit to the budget as well. It’s a one time investment which lasts virtually forever.
The government should invest in long term solutions: infrastructure, education, etc. There’s really no point investing anything into short term solutions. Housing can be a long term investment if done properly though. But that’s an off topic.