Washington, D.C. — Colorado U.S. Senator Michael Bennet, a senior member of the Senate Finance Committee, and U.S. Senator Jon Husted (R-Ohio) introduced the First-Time Homebuyer Empowerment Act. This bill would help first-time homebuyers by allowing them to put unused education savings toward a down payment.
“Across Colorado, too many young people and working families struggle to afford their first home,” said Bennet. “This bill would allow first-time homebuyers to use the savings they already have to cover a down payment and help put homeownership within reach.”
“I’m focused on helping working families get ahead and making life more affordable,” said Husted. “Making homeownership more attainable is a critical part of that effort. Too many Ohioans have worked hard, saved responsibly and still struggle to afford a down payment. By freeing up existing resources, I’m proud this bipartisan bill gives first-time homebuyers another tool to use in pursuing their version of the American Dream.”
The First-Time Homebuyer Empowerment Act would allow individuals to transfer up to $35,000 in leftover savings from their 529 education savings account penalty-free to purchase their first home. 529 college savings accounts are state-administered accounts used by families to save for education and other related expenses. Traditionally, unused funds in 529 accounts can only be used for trade school, graduate school, student loan payments, or transferred to a retirement account. 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.
“Downpayment hurdles continue to block many families from owning a home. The First-Time Home Buyer Empowerment Act provides a common-sense solution that empowers first-time buyers to use their own savings—at no cost to taxpayers. MBA looks forward to supporting this and other efforts in Congress to expand sustainable homeownership,” said Bill Killmer, Senior Vice President of Legislative & Political Affairs at Mortgage Bankers Association.
U.S. Representatives Tom Barrett (R-Mich.), Tracey Mann (R-Kan.), Mark Alford (R-Mo.) and Lou Correa (D-Calif.) introduced the companion bill to the First-Time Homebuyer Empowerment Act in the U.S. House of Representatives.
Bennet has continuously worked to address the affordable housing crisis. In March 2026, Bennet co-sponsored a key provision in the 21st Century ROAD to Housing Act that would put an additional $4 billion toward building affordable housing, making homeownership possible for working families. In December 2025, Bennet joined U.S. Senator John Cornyn (R-Texas) and a group of bipartisan Senate colleagues to introduce the More Homes on the Market Act, making housing more available and affordable by amending the tax code to allow sellers to exclude additional funds from capital gains taxes.
The text of the bill is available HERE.
###