Rep. Cammack Introduces The NEST Act

WASHINGTON, D.C. — Today, Congresswoman Kat Cammack introduced the Next-Generation Equity Savings Tool (NEST) Act, legislation aimed at helping American families overcome the financial barriers to homeownership.

The NEST Act would create tax-advantaged savings accounts for first-time homebuyers, allowing individuals and families to set aside money for a down payment and closing costs in a tax-friendly way. By making it easier to save for a home, the bill seeks to expand opportunity for those priced out of the housing market and strengthen financial stability for working families.

“Homeownership remains a cornerstone of the American Dream, yet too many young families and working Americans struggle to save enough for a down payment,” said Congresswoman Cammack. “The NEST Act empowers a new generation of homebuyers to save responsibly, keep more of what they earn, and build generational wealth.

What the NEST Act Does:

• Establishes tax-advantaged First-Time Homebuyer Savings Accounts under the Internal Revenue Code.
• Allows above-the-line tax-deductible contributions to help families save faster.
• Provides tax-free growth and tax-free withdrawals when used for qualified home purchase expenses.
• Permits funds to be used for down payments, closing costs, and related financing expenses for a primary residence.
• Limits eligibility to individuals who have not owned a principal residence within the prior three years.
• Caps lifetime contributions at 20 percent of the state median home price to reflect local housing markets.
• Allows employers to contribute to an employee’s account on a tax-free basis.
  Imposes taxes and penalties on non-qualified withdrawals to protect program integrity.

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