hold on there's just too much going on in Congress lmao...
Lets you withdraw 529 funds tax-free for a first home.
Rep. Mann (R-KS) and 9 bipartisan co-sponsors.
Referred to House Ways and Means Committee.
This bill changes the 529 college savings plan rules so that if the account has been open for at least 15 years, you can withdraw up to $35,000 from the contributions and earnings from the previous 5 years to buy a first home, without paying income tax or a penalty. The money must be used within 60 days for the purchase. Representative Mann introduced the bill; it's now awaiting a hearing in the tax-writing committee.
Introduced Feb 10, 2026
This bill is under review by a committee. The committee holds hearings, gathers testimony from experts and stakeholders, and may propose amendments. If the committee votes to advance it, the bill moves to the full chamber for debate and a vote.
If you have a 529 account that has been open for 15 years and you want to buy your first home, you could withdraw up to $35,000 without paying taxes or penalties. This is a new option alongside existing rules for using 529 funds for education. The $35,000 limit is reduced by any prior tax-free rollovers to a Roth IRA. If you sell the home or stop living there within 5 years, you'll owe some tax recapture.
Supporters Say
Supporters say it helps families use saved education funds for another major life goal: buying a first home.
Critics Say
Critics worry it could drain college savings and reduce the primary purpose of 529 plans.
The bill's bipartisan support reflects a desire to make 529 plans more flexible for first-time homebuying. Critics, including some education advocates, argue that taking money out of 529 accounts could leave families short for college costs. The 15-year holding requirement is meant to ensure the account is well established before a home withdrawal.