Bill · S. 5227· Senate(119-S-5227)
First-Time Home Buyer Empowerment Act
- Introduced
- 8/4/2026
- Last activity
- 8/4/2026 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Jon Husted
- Cosponsors
- - 0 - 1
- Introduced
- In Committee
What this bill would do
The First-Time Home Buyer Empowerment Act aims to amend the Internal Revenue Code of 1986. It proposes to allow certain distributions from long-term qualified tuition programs to be used for first home purchases. This applies to the original designated beneficiary or certain successor beneficiaries. The distribution must be used for the purchase of a principal residence within a specific timeframe. There is a cap on the total aggregate amount of these distributions allowed.
Yes· 3 of 12
Would people in their twenties and thirties be better off under this?+5
Younger adults are more likely to be first-time homebuyers using tuition savings.
Would middle-income households be better off under this?+4
Provides a way to repurpose education savings for home equity.
Does this make housing cost less?+4
The bill assists first-time homebuyers in accessing funds for principal residences.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Home Ownership Assistance: Beneficiaries can use funds from their qualified tuition programs to purchase a principal residence, provided they are a first-time homebuyer. This is found in Section 2(a)(i).
-
Flexibility for Delays: If a home purchase or construction is delayed or cancelled, the beneficiary has the option to contribute the distribution to a qualified tuition program or an ABLE account instead. This is found in Section 2(a)(iii).
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Tax Relief for Long-term Accounts: The bill allows distributions from accounts that have been maintained for a 15-year period. This is found in Section 2(a)(i).
Potential Negative Impacts for People
-
Tax Recapture Provision: If a beneficiary sells the home or stops using it as a principal residence within five years of the purchase, they may have to pay back the tax that would have been owed on the distribution, plus interest. This is found in Section 2(a)(iv)(I).
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Distribution Caps: There is a limit on the amount of money that can be distributed under this rule, capped at an aggregate of $35,000, which may be reduced by other distributions. This is found in Section 2(a)(ii).
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Strict Timing Requirements: To qualify, the distribution must be used for the purchase of a principal residence within 60 days of the distribution. This is found in Section 2(a)(i).
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+5Good For Middle Class Households+4Good For Low Income Households+3Good For Students+3Good For Middle Aged+2Good For People With Disabilities+2Good For High Income Households+1
- Social Issues And Justice
- Improves Affordable Housing+4Improves Poverty Reduction+1
- Economy And Finance
- Reduces Middle Class Taxes+3Improves Economic Growth+1
- Education And Technology
- Improves College Affordability+2
- 8/4/2026
- Read twice and referred to the Committee on Finance.
- 1 Cosponsor added.
- Introduced in Senate
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.
Michael BennetDemocrat · Colorado