U.S. Representatives Suhas Subramanyam of Virginia’s 10th District and Ashley Hinson of Iowa’s 2nd District have introduced a bipartisan bill intended to make homeownership more attainable for first-time buyers. The First Home Savings Opportunity Act would create tax-deductible savings accounts designed to help individuals and families accumulate funds for a down payment.

“Purchasing a home has become out of reach for far too many Americans because of housing costs, especially for young adults,” said Rep. Subramanyam. “We must preserve the American dream of home ownership and take action now in Congress. This commonsense legislation will make purchasing a home a little easier for first-time homebuyers. There is more Congress needs to do to address the affordability crisis, but this is an important step in the right direction.”

Rep. Hinson echoed those concerns, emphasizing that the bill aims to ease a major barrier to homeownership. “Buying a home is the core milestone of living out the American Dream, but it has become out of reach for hardworking families. By allowing families to save tax-free to buy a home, we’ll help more families be able to afford their dream home. I’ll continue working to improve housing access and affordability in Iowa and across the country,” she said.

According to a statement from Rep. Subramanyam’s office, the legislation would permit eligible participants to contribute up to $10,000 annually to a tax-free savings account, or $20,000 for joint filers. The funds would be reserved exclusively for down payments and closing costs on a first home, providing direct relief to new buyers and removing one of the most significant obstacles to entering the housing market.

Local and national housing advocates have welcomed the proposal. “The First Home Savings Opportunity Act of 2025 is a smart, forward-thinking solution to one of the most significant barriers facing young families and first-time home buyers: saving for a down payment. 

Expanding access to stable, attainable housing strengthens our workforce, supports local businesses, and builds more resilient communities. The Loudoun Chamber is proud to support this effort to offer more hardworking Americans the opportunity to achieve the dream of homeownership,” said President of the Loudoun Chamber of Commerce, Tony Howard. 

Shannon McGahn, Executive Vice President and Chief Advocacy Officer of the National Association of REALTORS®, noted that housing affordability pressures are intensifying nationwide. 

“Recent data show that nearly half of potential homebuyers cannot afford a down payment, as the median age of first-time homebuyers, now 40, continues to rise. For generations, access to homeownership has been the primary way Americans built wealth, and homeownership remains the cornerstone of the American Dream,” McGahn said. 

She added that the bipartisan legislation would help turn “aspiration into action,” with tax-deductible savings accounts offering families a meaningful path toward long-term stability.

McGahn also expressed appreciation on behalf of the National Association of REALTORS® to Reps. Subramanyam and Hinson for advancing a proposal focused on improving access to homeownership.

The bill is part of a broader push by Rep. Subramanyam to address housing affordability. His recent efforts include:

• Securing $1,000,000 for Hero’s Bridge to build affordable housing for aging veterans in rural Virginia.
• Securing $1,200,000 for Northern Virginia Community College to establish a Center for Building and Construction Trades to strengthen the local skilled workforce.
• Co-sponsoring the Affordable Housing Credit Improvement Act to enhance the Low-Income Housing Tax Credit.
• Co-sponsoring the CONSTRUCTS Act to create a grant program supporting construction workforce training at community and technical colleges.
• Co-sponsoring the Housing Supply Frameworks Act to improve state and local housing production through zoning best practices.
• Co-sponsoring the Saving the American Dream Act to coordinate housing-related research and market data.
• Co-sponsoring the Housing Financial Literacy Act to offer first-time homebuyers a discount on mortgage premiums upon completion of a financial literacy counseling course.

Related posts:

President Trump and Mayor-elect Zohran Mamdani Pledge to Work Together on Affordability After “Productive” Oval Office Meeting OECD Sounds Alarm on Corporate Tax Exposure from Remote Work as Multinationals Brace for PE, PoEM and Compliance Shockwaves Cash to Crypto? U.S. Remittance Tax Fuels Fintech Innovation and Informal Risks India Gains as U.S. Retreats on Section 899; Global Minimum Tax Finds New Stability