Skip to content
Govbase
Govbase
Congress·In Committee·S. 3930

Sens. Merkley and Hawley Introduce the HOPE for Homeownership Act to Tax Hedge Funds Buying Houses

HOPE (Humans over Private Equity) for Homeownership Act

19 days ago·View on Congress.gov

Legislative Progress

Senate
House
President
Law

Key Points

  • The bill would impose a 15% excise tax on hedge funds every time they buy a single-family home or small residential property with up to 4 units. This applies to any entity managing $50 million or more in pooled investor funds.

    From policy text

    “There is hereby imposed the acquisition of any newly acquired single-family residence by a hedge fund taxpayer an amount equal to 15 percent of the purchase price thereof.”
    View in full text
  • Hedge fund taxpayers are defined as partnerships, corporations, or real estate investment trusts that manage pooled investor funds and have at least $50 million in net value or assets under management. Nonprofits and homebuilders who sell homes in the ordinary course of business are exempt.
  • Starting in 2031, hedge fund taxpayers would lose key tax breaks: they could no longer deduct mortgage interest or claim depreciation on single-family rental homes. This makes it significantly more expensive for large firms to hold and rent out houses.

    From policy text

    “In the case of a hedge fund taxpayer, no deduction shall be allowed under this chapter with respect to interest paid or accrued on acquisition indebtedness with respect to any single-family residence.”
    View in full text
  • Beginning in 2036, hedge fund taxpayers that are corporations would face a 5-percentage-point increase in their corporate tax rate, adding another financial penalty on top of the excise tax and deduction losses.

    From policy text

    “In the case of a corporation which is described in section 5000E(c), the percentage under subsection (b) shall be increased by 5 percentage points.”
    View in full text
  • Introduced by Sens. Merkley and Hawley, the bill enjoys bipartisan sponsorship — a progressive Democrat and a conservative Republican united by the goal of making it harder for Wall Street firms to outbid regular families for starter homes.
HousingTaxesEconomy Finance

Impact Analysis

Personal Impact

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones2 actions
Feb 26, 2026Senate

Read twice and referred to the Committee on Finance.

Feb 26, 2026

Introduced in Senate

Source Information

Document Type

Congressional Bill

Official Title

HOPE (Humans over Private Equity) for Homeownership Act

Bill NumberS 3930
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on Finance.

Sponsor

Cosponsors

(1)
R: 1

Analysis generated by AI. Always verify with official sources.