U.S. Senator Rick Scott (R-FL) has introduced the American Dream Accounts Act of 2026, a new piece of legislation aimed at helping first-time homebuyers offset soaring home prices by creating dedicated, tax-advantaged savings accounts.
How the Bill Works
The bill proposes a system similar to a Roth IRA, where prospective buyers can build up funds specifically for down payments and closing costs without facing federal taxes on the account’s growth. Any U.S. citizen looking to purchase their first home could contribute up to $7,500 annually, with a catch-up provision of $10,000 for individuals aged 35 and older.
Total lifetime contributions into the accounts are capped at $250,000, and the maximum tax-free withdrawal for a home purchase is set at $500,000—or $250,000 if individuals buy a property jointly. To prevent real estate speculation or quick “house flipping” using tax-sheltered money, the bill mandates that the purchased property must serve as a primary residence for at least three years.
Support for the Bill
The proposal has drawn formal endorsements from a large coalition of state and national real estate, banking, and building organizations, including the National Association of REALTORS (NAR), the National Association of Home Builders (NAHB), and the Florida Bankers Association (FBA). Supporters of the bill point to the growing financial hurdles facing buyers trying to enter the modern housing market.
“Recent data show that nearly half of potential homebuyers cannot afford a down payment, and the median age of first-time homebuyers is now 40,” said Shannon McGahn, Executive Vice President and Chief Advocacy Officer of NAR. “The proposed first-time homebuyer savings accounts will help individuals and families save for a down payment and closing costs.”
Original reporting: Tampa Free Press — read the source article.
