The Trump administration is preparing to roll out a proposal that would let Americans tap their 401(k) retirement accounts to help cover down payments on homes, a move aimed at easing the path to homeownership for working families.
According to The Post Millennial, National Economic Council Director Kevin Hassett confirmed that the White House intends to move forward with the initiative in the coming days. Were going to allow people to take money out of their 401(k)s and use that for a down payment, Hassett said on Friday, adding, The president will put the final plan out in Davos next week."
Hassett noted that he will accompany President Trump to the World Economic Forum in Switzerland, where they will finalize what he described as a simple mechanism to transfer funds without undermining long-term retirement security. Were still talking about the mechanics of it, Hassett added, underscoring the administrations effort to balance immediate housing needs with future savings.
The proposal is the latest in a series of efforts by the Trump administration to confront soaring housing costs that have priced many Americans out of the market. Housing affordability remains a pressing concern nationwide, with elevated home prices shutting out would-be buyers despite their desire to build equity and stability.
President Trump has weighed several additional measures, including restricting private equity firms and hedge funds from buying up single-family homes that traditionally serve as entry-level properties for families. He has also considered directing the Federal Housing Finance Agency to purchase $200 billion in bonds from Fannie Mae and Freddie Mac in an attempt to push mortgage rates lower.
Alongside these ideas, the President has repeatedly urged the Federal Reserve to cut interest rates, a move that would likely reduce borrowing costs for homebuyers and stimulate broader economic growth. Some analysts and economists, however, contend that the core problem is inadequate housing supply, raising the question of whether unlocking 401(k) fundswhile expanding choice and personal responsibilitywill be enough without serious action to increase the number of homes being built.
Login