Dear friends and neighbors,

For many Ohio families, owning a home is a cornerstone of their American Dream. Unfortunately, for too many working families, that dream feels out of reach. I believe hard work should open the door to opportunity, and that includes making it easier to achieve the goal of owning a home.

That’s why I introduced the First-Time Homebuyer Empowerment Act with Sen. Michael Bennet (D-Colo.) in the United States Senate. This bipartisan bill that would allow first-time homebuyers to transfer up to $35,000 in unused funds from a 529 college savings plan tax-free toward a home down payment.

Learn more about my bill here. 

My bill targets one of the biggest barriers to home ownership at no cost to American taxpayers.

The First-Time Homebuyer Empowerment Act focuses on tackling housing affordability and supporting Ohioans who work hard, save responsibly, and still struggle to save enough for a down payment.

What this means for Ohio 

For years, I’ve met with Ohioans who’ve shared with me how burdensome and costly it is to purchase a home. Since 2018, the median single-family home price in our state has increased by 62% while the number of newly listed single-family homes for sale has decreased. Because Ohio is the top state to do business, more people are choosing to stay in Ohio, relocate to Ohio, and build their families here. They want—and deserve—their community to be affordable for themselves, their children, and grandchildren.

By freeing up existing resources and cutting red tape, this bill would provide Americans with greater flexibility to use their existing savings in tax advantaged accounts and provides another tool to use in pursuing their version of the American Dream.

The First-Time Homebuyer Empowerment Act includes:

• Amending the Internal Revenue Code: Revises the Internal Revenue Code to allow qualified distributions from long-term qualified tuition programs for first home purchases to keep their tax-free status.
• Stretching the Value of your Dollar: Allows eligible first-time homebuyers to transfer up to $35,000 in unused funds from a 529 college savings plan tax-free toward a down payment on a home.
• Changing Systems Built on Red Tape: Funds in 529 plans traditionally are only used for education-related expenses or transferred to a retirement account, but this bill would remove barriers to making a down payment and help more families afford a home.
• Supporting First-time Homeowners: Encourages Ohioans who have money left in a 529 college savings account to grow their assets and increase total homeownership. 
• Keeping 529 Plan Consistent: Avoids changes to the college savings plan including to mortgage rules, state housing assistance programs, or FHA, VA, and USDA loans.

What Ohioans are saying about the bill

“Husted introduced the First-Time Homebuyer Empowerment Act this month with U.S. Sen. Michael Bennet, a Colorado Democrat. It would let people transfer up to $35,000 in leftover college savings from their 529 plans tax-free to buy a first home.” Cleveland.com (Cleveland) Husted introduces bill to let homebuyers tap 529 savings for down payments

“The change would help address one of the biggest barriers facing prospective buyers: saving enough money for a down payment.” WKYC (Toledo)  Sen. Jon Husted introduces bipartisan bill to let first-time homebuyers use unused college savings for down payments
 
“By freeing up existing resources for first-time homebuyers, the bill would remove barriers to making a down payment and help more families afford a home.” WDTN (Dayton)  New bill targets down payment barriers for families
 
“U.S. Sen. Jon Husted introduced bipartisan legislation to help first-time homebuyers tap into unused money from a college savings fund they may have toward a down payment.” Tribune Chronicle (Warren)  Husted bill would free up unused college savings for first-time homebuyers
 
“The measure would give prospective homebuyers another option to help cover the cost of a down payment without creating a new taxpayer-funded program.” WOWO (Toledo)  Husted introduces bipartisan bill allowing unused 529 funds for first-home down payments

In July, I hosted Ohio housing leaders for a roundtable on how we can address the root causes of rising housing costs including cutting red tape, lowering costs for families, and protecting taxpayers.

For many Ohioans, owning a home is part of their American Dream and we have an obligation to make sure that goal is within reach. 

It’s my honor to serve Ohioans in the United States Senate. 

We’re here to help 

Customer service is my top priority. My team and I have offices across Ohio to help our nearly 11.9 million neighbors. You can find the office locations here. 
 
As your U.S. Senator, my number one goal is to be a resource for you. If you’re having issues with federal agencies, you can fill out a form here for help. You can also call my Columbus office at (614) 369-4925 to speak with a dedicated member of my casework team. 

Stay in touch 

You can keep up with the work I’m doing on behalf of Ohioans by signing up for my newsletter and following me on X at @SenJonHusted, Facebook at www.facebook.com/SenJonHusted, YouTube at @SenJonHusted, and Instagram at @SenJonHusted.

In your service,

Jon Husted

In Case You Missed it In the News: 

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WTOL CBS News 11: Husted, Sonderling highlight workforce development during Northwest Ohio tour

WCMH NBC News 4: Ohio lawmakers introduce bills to curb rising electric costs

Lima.com: Husted, Warner lead bipartisan package of bills

Scioto Valley Guardian: Husted, Lummis introduce bill to clarify EPA air permitting rules