Congress raises first-time homebuyer retirement withdrawal limit to $25,000
H.R. 2748 — First Time Homeowner Savings Plan Act · Filed by Haley Stevens (D-MI) · Introduced Apr 8, 2025 · Referred to committee
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What it does
This bill increases the amount first-time homebuyers can withdraw penalty-free from retirement accounts (IRAs and similar plans) from $10,000 to $25,000, and indexes that limit to inflation annually starting in 2026. Ordinary people saving for a first home gain access to more of their own retirement savings without tax penalty; the change takes effect for withdrawals after December 31, 2025.
Why we flagged it
The bill's sole operative mechanism is a straightforward increase in the penalty-free withdrawal limit for a specific class of taxpayers (first-time homebuyers) from retirement accounts, paired with an inflation adjustment. It is a targeted tax-code amendment designed to ease access to down-payment capital.
What the text implies
- Increases federal revenue loss (foregone tax on larger withdrawals) unless offset by increased homeownership and associated economic activity.
- May disproportionately benefit higher-income savers who have accumulated larger retirement balances; lower-income workers may lack sufficient retirement savings to benefit even at the higher limit.
- Inflation indexing after 2026 means the benefit will grow automatically without further legislative action, potentially increasing long-term revenue impact.
Section numbers refer to the bill text the analysis read — linked under Primary records below.
Who it affects
First-time homebuyers gain direct access to $15,000 more of their own retirement savings without penalty, reducing reliance on external financing and lowering barriers to homeownership. The inflation adjustment ensures the benefit does not erode over time. No offsetting cost to ordinary citizens is apparent from the text.
Who stands to gain
- first-time homebuyers (individuals)
- real estate and mortgage lending sectors (indirect, via increased down-payment capacity)
Named in the bill
Internal Revenue Code Section 72(t)(8), first-time homebuyers, individual retirement accounts (IRAs), Treasury Department
Where it stands
- Apr 8, 2025 — Introduced · Congress.gov: “Introduced in House”
- Apr 8, 2025 — Referred to House Committee on Ways and Means · Congress.gov: “Referred to the House Committee on Ways and Means”
Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.
Money around this bill
2 lobbying clients named this bill on 2 disclosure filings across 1 quarter, Jun 2026 to Jun 2026. Those filings disclosed $1,700,000 in lobbying spend. A filing names 61 bills on average, so that figure is what each filing reported, not a share belonging to this bill.
More lobbying clients named this bill than 41% of bills with at least one filing.
Haley Stevens, the sponsor, reported $1,745,251 in PAC receipts in the 2026 cycle.
- Mortgage Bankers Association — $1,220,000 on 1 filing
- Pacific Life Insurance Company — $480,000 on 1 filing
Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.
How this was measured
Analysis — Quorum's AI read the bill text published by Congress.gov (1,106 characters) on Jun 11, 2026. Section numbers in the findings refer to that text, linked below; transparency and hidden-provision scores are compared against the median of 16,222 analysed bills.
Status and sponsors — Congress.gov's bill record — actions, committee referrals and cosponsors — loaded nightly. The timeline shows status changes, not every procedural action.
Money — Senate Lobbying Disclosure Act filings whose specific-issue field names this bill for quarters ending Jun 2026 to Jun 2026. A filing's amount is reported whole beside the median number of bills a filing names; it is never divided across them. PAC receipts are FEC-reported contributions to the sponsor's candidate committee in the 2026 cycle.
As of — lobbying records through Jul 20, 2026 · page rendered 2026-10-20.
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