hold on there's just too much going on in Congress lmao...
Creates tax-deductible savings accounts for first-time home purchases.
Introduced by Reps. Cammack and Moylan; referred to Ways and Means.
Introduced in House, no committee action yet.
The 'Next-Generation Equity Savings Tool Act' (NEST Act) would allow individuals to create tax-deductible savings accounts specifically for purchasing their first home. These accounts would function similarly to other tax-advantaged savings plans, with contributions and withdrawals for qualified home expenses remaining untaxed. The bill was introduced by Republican Representatives Kat Cammack of Florida and Barry Moylan of Guam and has been sent to the House Committee on Ways and Means for review. Currently, it awaits consideration by this committee.
Introduced Feb 9, 2026
H.R. 7422 was introduced in the House of Representatives on February 9, 2026, and referred to the House Committee on Ways and Means. Before it can move forward, the committee must review and approve the bill. If it passes committee, it would then be eligible for a vote by the full House. If passed by the House, it would then proceed to the Senate for their review and vote, and finally to the President for signature to become law.
If this bill becomes law, individuals saving for their first home could contribute money to a 'First-Time Homebuyer Savings Account' and deduct those contributions from their income, lowering their tax bill. Any earnings within this account would not be taxed, and withdrawals used for 'qualified home ownership expenses' (like down payments, financing, or closing costs) would also be tax-free. Additionally, employers would be able to contribute to these accounts on behalf of their employees, and these contributions would be excluded from the employee's taxable income and certain employment taxes.
Supporters Say
Supporters would likely argue this bill helps individuals achieve homeownership by making it easier and more affordable to save for a down payment.
Critics Say
Critics might point out that the tax benefits could disproportionately favor higher-income earners or those already capable of saving, without significantly addressing broader housing affordability issues.
Those in favor of the NEST Act would likely emphasize its potential to encourage personal savings for a significant life goal, offering a tangible tax incentive to overcome the high costs of entering the housing market. They may highlight how it broadens access to homeownership for younger generations or those struggling with rising home prices. Conversely, opponents might argue that such tax-advantaged accounts could provide the most benefit to individuals who already have sufficient income to save, potentially exacerbating wealth inequality. Concerns might also be raised about the revenue impact of such deductions and exclusions on the federal budget.