Barrett Helps Introduce Bipartisan Bill to Make Down Payments Easier for First-Time Homebuyers

Washington, D.C. — Congressmen Tom Barrett (MI-07) and Tracey Mann (KS-01), along with Congressmen Mark Alford (MO-04) and Lou Correa (CA-46), today introduced the First-Time Homebuyer Empowerment Act (H.R. 7468), which would help families afford a home by allowing them to put unused college savings toward a down payment.

“Too many families can’t afford homes that work for them, plain and simple,” said Barrett. “An easy first step towards changing that reality is to let homebuyers tap into unused college savings in their 529 accounts and put them towards purchasing their first home. I’m proud to join my colleagues on this legislation to incentivize saving for the future and help the next generation achieve homeownership.”

The First-Time Homebuyer Empowerment Act (H.R. 7468) would allow people to withdraw up to $35,000 in leftover college savings from their 529 plans tax free for the purchase of a first home. Funds in 529 plans may otherwise only be used for education-related expenses or transferred to a retirement account. By giving first-time homebuyers access to more resources, the bill aims to remove barriers to making a down payment and help more families afford a home and achieve the American Dream.

“Homeownership is the heart of the American Dream,” said Mann. “The ability to provide a safe, stable place to raise a family is so important for the future of our country. Today, too many young Americans feel that owning a home continues to become more and more out of reach. Our legislation gives people more flexibility on how to use their savings, opening up pathways for more Americans to own equity in their homes.”

The new bill, which is the latest addition to Barrett’s Blueprint for a Better America, comes the day after Barrett announced a package of four housing affordability bills in the Blueprint’s second pillar: Reviving the American Dream. The package aims to tackle the growing issue of housing affordability by lowering costs for homebuyers, boosting new home construction, limiting large corporations’ ability to buy up homes before families have a chance, and help widowed homeowners afford to downsize and put their homes on the market. The new bill also comes a day after Barrett and the House passed the Housing for the 21st Century Act (H.R. 6644), a landmark bipartisan housing package aimed at cutting red tape to boost construction, making home loans more accessible, modernizing HUD programs, and more.

About Barrett’s Blueprint for a Better America

Reviving the American Dream is the second of five pillars of Barrett’s Blueprint for a Better America. The congressman will continue to unveil additional proposals in the coming weeks to address all of the five key policy areas this agenda is built on:

• Restoring Trust in Government: Making Government Serve the People, Not Special Interests
• Reviving the American Dream: Helping Families Afford Homes in Mid-Michigan
• Making Health Care Affordable Again: Lowering Costs for Working Families
• Recalibrating American Foreign Policy: Ending Endless Wars and Promoting Peace Through Strength
• Reforming Campaign Finance: Putting Governing Before Campaigning

Click here or visit barrett.house.gov/reform to learn more.

Click here to read the First-Time Homebuyer Empowerment Act.

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