Bill · H.R. 9895· House(119-HR-9895)
American Dream Accounts Act of 2026
- Introduced
- 7/23/2026
- Last activity
- 7/23/2026 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Aaron Bean
- Cosponsors
- - 1 - 0
- Introduced
- In Committee
What this bill would do
This bill proposes to amend the Internal Revenue Code of 1986 to establish "American dream accounts." These accounts are specialized trusts created for the exclusive benefit of U.S. citizens. The primary purpose of these accounts involves providing tax-exempt funds for qualified first-time homebuyer distributions. Contributions are limited by specific annual and lifetime dollar amounts. The bill also outlines specific rules for distributions, rollovers to other accounts, and requirements for trustees.
Yes· 3 of 8
Would people in their twenties and thirties be better off under this?+6
The bill provides a tool for wealth accumulation and homeownership that is particularly relevant to younger citizens entering the housing market.
Would people in middle age be better off under this?+5
The bill allows for higher 'catchup' contributions for individuals aged 35 and older.
Would middle-income households be better off under this?+5
The bill offers a new way for middle-income families to save for homeownership with significant tax advantages.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Tax-Exempt Savings: American dream accounts are exempt from taxation under the subtitle, allowing individuals to grow their savings without certain tax burdens (Section 2(a)).
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Support for Homeownership: Distributions used for qualified first-time homebuyer purchases are not includible in gross income, providing a financial benefit for those buying their first home (Section s2(d)(2)(A)).
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Flexible Contribution Limits: Individuals who have reached the age of 35 can take advantage of a higher annual contribution limit of $10,000 instead of the standard $7,500 (Section 2(c)(2)).
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Financial Security through Rollovers: Beneficiaries have the ability to roll over funds into other American dream accounts or Roth IRAs, allowing for continued financial planning (Section 2(d)(5)(A)).
Potential Negative Impacts for People
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Tax Penalties on Non-Qualified Uses: If a person receives a distribution that is includible in gross income, they may face an additional tax of 10 percent (Section 2(d)(4)(A)).
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Income Inclusion Upon Early Sale: If a person sells their principal residence less than three years after acquiring it through a distribution, the amount that would have been excluded from gross income may be included in their income in the year of the sale (Section 2(d)(2)(D)(i)).
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Strict Contribution Limits: There are limits on how much can be contributed, which may restrict the total amount of savings an individual can accumulate in these accounts (Section 2(c)(1)).
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Restrictions on Investment Types: The bill prohibits the use of trust funds for investment in life insurance contracts (Section 2(b)(1)(C)).
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 Young Adults+6Good For Middle Aged+5Good For Middle Class Households+5Good For Low Income Households+3Good For Urban Residents+2
- Economy And Finance
- Reduces Middle Class Taxes+5Improves Economic Growth+3
- Social Issues And Justice
- Improves Affordable Housing+5
- 10/1/2026
- 1 Cosponsor added.
- 7/23/2026
- Referred to the House Committee on Ways and Means.
- Introduced in House
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
John JamesRepublican · Michigan