Bill · H.R. 7051· House(119-HR-7051)
American Dream Act
- Introduced
- 1/14/2026
- Last activity
- 1/14/2026 — Referred to the House Committee on Ways and Means.
- Sponsored by
- John McGuire
- Cosponsors
- - 12 - 0
- Introduced
- In Committee
What this bill would do
The American Dream Act aims to amend the Internal Revenue Code of 1986. It proposes to exclude gains from the sale of real property from gross income under specific conditions. This exclusion applies to individuals who have reached the age of 65 at the time of the sale. The sale must be made to a first-time homebuyer for use as their principal residence. Additionally, the sale price cannot exceed $500,000. This provision is set to expire after December 31, 2031.
Yes· 3 of 5
Would people over 65 be better off under this?+6
The bill provides a specific tax exclusion for individuals who have attained the age of 65.
Does this cut taxes for middle-income families?+5
The bill provides a tax exclusion for capital gains on property sales up to $500,000, which benefits many middle-income seniors.
Would middle-income households be better off under this?+4
The tax exclusion provides financial relief for households selling property within the $500,000 limit.
The opposite
Does this reduce what the federal government spends?-2
By excluding gains from gross income, the bill reduces federal tax revenue.
Who it would affect, and how
Potential Positive Impacts for People
-
Tax Relief for Seniors: Individuals who have attained age 65 can exclude gains from the sale of real property from their gross income (Section 2(a)). This could provide a financial benefit to seniors selling their property.
-
Support for First-Time Homebuyers: The bill incentivizes sales to first-time homebuyers, defined as individuals who, or whose spouses, have not had a present ownership interest in a principal residence prior to the date of sale (Section 2(b)). This could help these individuals acquire a principal residence.
Potential Negative Impacts for People
-
Price Limitations: The benefit is only available if the sale price of the real property does not exceed $500,000 (Section 2(a)(3)). This could limit the effectiveness of the bill for those selling more expensive properties.
-
Time Constraints: The exclusion is temporary and shall not apply to any sale after December 31, 2031 (Section 2(a)(4)). This creates a deadline for taxpayers to utilize the provision.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Seniors+6Good For Middle Class Households+4Good For Young Adults+3
- Economy And Finance
- Reduces Middle Class Taxes+5Reduces Government Spending-2
- Social Issues And Justice
- Improves Affordable Housing+3
- 4/27/2026
- 1 Cosponsor added.
- 2/3/2026
- 1 Cosponsor added.
- 1/21/2026
- 1 Cosponsor added.
- 1/15/2026
- 1 Cosponsor added.
- 1/14/2026
- Referred to the House Committee on Ways and Means.
- 8 Cosponsors added.
- Introduced in House
Tom BarrettRepublican · Michigan
Kat CammackRepublican · Florida
Abraham HamadehRepublican · Arizona
Jeff HurdRepublican · Colorado
Mike KennedyRepublican · Utah
Mariannette Miller-MeeksRepublican · Iowa
Ryan MackenzieRepublican · Pennsylvania
Mark MessmerRepublican · Indiana
Marlin StutzmanRepublican · Indiana
Pete StauberRepublican · Minnesota
Derek SchmidtRepublican · Kansas
Jefferson ShreveRepublican · Indiana