Rep. Subramanyam Introduces Bipartisan Bill to Help First-Time Homebuyers Save for a Downpayment

December 9, 2025

WASHINGTON, DC – U.S. Representatives Suhas Subramanyam (VA-10) and Ashley Hinson (IA-02) introduced a bipartisan bill that will help first-time homebuyers with a down payment on a home. The First Home Savings Opportunity Act establishes tax-deductible first-time homebuyer savings accounts to assist individuals and families saving for a downpayment.

“Purchasing a home has become out of reach for far too many Americans because of housing costs, especially for young adults,” said Rep. Subramanyam. “We must preserve the American dream of home ownership and take action now in Congress. This commonsense legislation will make purchasing a home a little easier for first-time homebuyers. There is more Congress needs to do to address the affordability crisis, but this is an important step in the right direction.”

“Buying a home is the core milestone of living out the American Dream, but it has become out of reach for hardworking families. By allowing families to save tax-free to buy a home, we’ll help more families be able to afford their dream home. I’ll continue working to improve housing access and affordability in Iowa and across the country,” said Rep. Hinson.

The First Home Savings Opportunity Act would allow eligible participants to contribute up to $10,000 per year tax-free ($20,000 for joint filers) to a savings account. These funds would be used exclusively for a downpayment and closing costs on a first home, offering some relief to potential homebuyers and removing a significant barrier to entering the housing market.

“The First Home Savings Opportunity Act of 2025 is a smart, forward-thinking solution to one of the most significant barriers facing young families and first-time home buyers: saving for a down payment. Expanding access to stable, attainable housing strengthens our workforce, supports local businesses, and builds more resilient communities. The Loudoun Chamber is proud to support this effort to offer more hardworking Americans the opportunity to achieve the dream of homeownership,” said Tony Howard, President of the Loudoun Chamber of Commerce.

“Recent data show that nearly half of potential homebuyers cannot afford a down payment, as the median age of first-time homebuyers, now 40, continues to rise. For generations, access to homeownership has been the primary way Americans built wealth, and homeownership remains the cornerstone of the American Dream. The bipartisan First Home Savings Opportunity Act would help turn aspiration into action, turning modest savings into the foundation of lifelong stability. The National Association of REALTORS® is grateful that Representatives Suhas Subramanyam (D-VA) and Ashley Hinson (R-IA) have introduced this bill to address these challenges by establishing tax-deductible, first-time homebuyer savings accounts, helping individuals and families save for a down payment and closing costs,” said Shannon McGahn, National Association of REALTORS® Executive Vice President and Chief Advocacy Officer.

In addition to introducing the First Home Savings Opportunity Act, Congressman Subramanyam has taken the following actions to bring down housing costs:

Secured $1,000,000 for Hero’s Bridge to construct affordable housing for aging veterans living in rural Virginia in this year's spending bills.
Secured $1,200,000 for Northern Virginia Community College to construct a Center for Building and Construction Trades to develop a skilled construction workforce for Northern Virginia in this year's spending bills.
Co-sponsored the Affordable Housing Credit Improvement Act to expand and strengthen the Low-Income Housing Tax Credit.
Co-sponsored the CONSTRUCTS Act to establish a grant program for junior/community colleges and technical education schools to develop residential construction industry training and education.
Co-sponsored the Housing Supply Frameworks Act to provide best housing practices for housing production and housing opportunities with respect to state and local zoning frameworks.
Co-sponsored the Saving the American Dream Act to better coordinate relevant housing-related research and market data.
Co-sponsored the Housing Financial Literacy Act that will give first time homebuyers a discount on mortgage premiums if they complete a financial literacy housing counseling course before purchasing a home.

Congressman Subramanyam is a member of the Real Estate Caucus and the New Democrat Coalition’s Task Force on Housing, Transportation, and Infrastructure. Rep. Subramanyam spoke about his housing bill on the House floor and his speech can be found here.