Congressman Greg Steube (R-Fla.) recently introduced a bipartisan bill to help lower housing costs for working Americans.
In a joint effort with Democratic Congressman Jimmy Panetta (Calif.), the duo introduced the Homeownership Opportunity Act.
Hardworking Americans shouldn’t be punished for using their own savings to buy a home.
My Homeownership Opportunity Act gives Americans the freedom to put that money toward a down payment and closing costs without unnecessary taxes and penalties.
You earned it. You deserve to achieve the American Dream! 🏡🇺🇸
https://t.co/K23yMsfPY5
— Congressman Greg Steube (@RepGregSteube) October 29, 2026
The Bill's Function
According to the bill's text, the legislation attempts to allow penalty-free distributions from workplace savings accounts for down payments and closing costs when buying a primary home.
Individuals with accounts such as 401(k)s, 403(b)s, and certain 457 plans can choose between withdrawing up to $40,000 or 40% of their total account balance, whichever option is most favorable.
The amount is an aggregate limit, meaning homebuyers cannot withdraw more than the allotted amount, even if they try to purchase another home.
The bill would apply to tax years beginning in 2026 up until 2035.
Individuals can recontribute distributions within three years of the day after their withdrawal, including Individual Retirement Accounts (IRAs) if they separate from their employer during that time.
Pathways To Affordable Housing
Congressman Steube's effort comes just three months after Congress' 21st Century ROAD to Housing Act became law.
The landmark bill sought to create easier and more affordable pathways for homebuying by slashing federal regulations and expediting environmental reviews and construction processes.
The legislation also tackled corporate buyouts of single-family homes by limiting their ability to do so.
American Dream is Deserved
"Together, we must keep working to give families more options to achieve homeownership and the foundation for the American Dream," Congressman Panetta said.
"You deserve to achieve the American Dream!" Congressman Steube affirmed.
