Rep. Cammack Introduces The NEST Act

February 11, 2026 Press Release Bill Creates Tax-Free Savings Accounts for First-Time Homebuyers 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. ###