Dear friends and neighbors,
For many Ohio families, owning a home is a cornerstone of their American Dream. Unfortunately, for too many working families, that dream feels out of reach.
I believe hard work should open the door to opportunity, and that includes making it easier to achieve the goal of owning a home.
That’s why I introduced the First-Time Homebuyer Empowerment Act with Sen. Michael Bennet (D-Colo.) in the United States Senate.
This bipartisan bill would allow first-time homebuyers to transfer up to $35,000 in unused funds from a 529 college savings plan tax-free toward a home down payment. My bill targets one of the biggest barriers to home ownership at no cost to American taxpayers.
The First-Time Homebuyer Empowerment Act focuses on tackling housing affordability and supporting Ohioans who work hard, save responsibly, and still struggle to save enough for a down payment.
What this means for Ohio
For years, I’ve met with Ohioans who’ve shared with me how burdensome and costly it is to purchase a home. Since 2018, the median single-family home price in our state has increased by 62% while the number of newly listed single-family homes for sale has decreased. Because Ohio is the top state to do business, more people are choosing to stay in Ohio, relocate to Ohio, and build their families here. They want—and deserve—their community to be affordable for themselves, their children, and grandchildren.
By freeing up existing resources and cutting red tape, this bill would provide Americans with greater flexibility to use their existing savings in tax advantaged accounts and provides another tool to use in pursuing their version of the American Dream.
First-Time Homebuyer Empowerment Act includes
Amending the Internal Revenue Code: Revises the Internal Revenue Code to allow qualified distributions from long-term qualified tuition programs for first home purchases to keep their tax-free status.
Stretching the Value of your Dollar: Allows eligible first-time homebuyers to transfer up to $35,000 in unused funds from a 529 college savings plan tax-free toward a down payment on a home.
Changing Systems Built on Red Tape: Funds in 529 plans traditionally are only used for education-related expenses or transferred to a retirement account, but this bill would remove barriers to making a down payment and help more families afford a home.
Supporting First-time Homeowners: Encourages Ohioans who have money left in a 529 college savings account to grow their assets and increase total homeownership.
Keeping 529 Plan Consistent: Avoids changes to the college savings plan including to mortgage rules, state housing assistance programs, or FHA, VA, and USDA loans.
What Ohioans are saying about the bill
“Husted introduced the First-Time Homebuyer Empowerment Act this month with U.S. Sen. Michael Bennet, a Colorado Democrat.
It would let people transfer up to $35,000 in leftover college savings from their 529 plans tax-free to buy a first home.” Cleveland.com (Cleveland) Husted introduces bill to let homebuyers tap 529 savings for down payments
“The change would help address one of the biggest barriers facing prospective buyers: saving enough money for a down payment.” WKYC (Toledo) Sen. Jon Husted introduces bipartisan bill to let first-time homebuyers use unused college savings for down payments
“By freeing up existing resources for first-time homebuyers, the bill would remove barriers to making a down payment and help more families afford a home.” WDTN (Dayton) New bill targets down payment barriers for families
“U.S. Sen. Jon Husted introduced bipartisan legislation to help first-time homebuyers tap into unused money from a college savings fund they may have toward a down payment.” Tribune Chronicle (Warren) Husted bill would free up unused college savings for first-time homebuyers
“The measure would give prospective homebuyers another option to help cover the cost of a down payment without creating a new taxpayer-funded program.” WOWO (Toledo) Husted introduces bipartisan bill allowing unused 529 funds for first-home down payments