New Bills Propose Using 529 Savings for First-Time Home Purchases
February 5 – February 10, 2026
Proposed legislation H.R. 7402 and H.R. 7393 aim to allow first-time homebuyers to make penalty-free and tax-free withdrawals from 529 college savings plans for home purchases and mortgage payments. This shift would expand the utility of education accounts to support housing affordability.
Policies
Congress Proposes Letting First-Time Buyers Use $35,000 from College Savings for Home Purchases
H.R. 7468
Congress Proposes Allowing Families to Use 529 College Savings for First-Time Home Purchases
H.R. 7402
Congress Proposes Allowing First-Time Homebuyers to Use 529 College Savings for Home Purchases
H.R. 7393
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