Barrett Launches Second Pillar of Blueprint for a Better America To Revive the American Dream

February 9, 2026 Press Release New Proposals Will Tackle Housing Affordability by Lowering Costs, Boosting Construction, and More Washington, D.C. — Congressman Tom Barrett (MI-07) today launched the second pillar of his Blueprint for a Better America : Reviving the American Dream. This sweeping package of four bills aims to tackle the growing issue of housing affordability in the United States by lowering costs for homebuyers, boosting construction, and more. “Too many families in mid-Michigan are being priced out of the American Dream. They just can’t afford a home that works for them,” said Barrett. “That’s why I’m introducing bills to make housing more affordable for Michiganders. These proposals will help first-time buyers make a down payment, boost new home construction, protect grieving spouses from unfair tax burdens, and ensure that homes go to families who need them — not just big investment corporations looking to profit. It’s time we build a housing market focused on putting families in homes rather than pricing them out.” Today, Barrett introduced the Time to Heal Act ( H.R. 7349 ) . This bill would eliminate the requirement that widowed spouses must sell their home within two years of their spouse’s death to receive the $500,000 exemption on capital gains taxes for married couples, rather than the $250,000 exemption for single sellers. By easing the financial burden on individuals downsizing years after a spouse’s death, the bill would encourage surviving spouses to put their homes on the market for new buyers — without forcing them to rush to sell their house while grieving. “The Time to Heal Act is a commonsense fix to the tax code that recognizes the real-life challenges surviving spouses face after the loss of a loved one,” said Shannon McGahn, executive vice president and chief advocacy officer of the National Association of REALTORS®. “No one should be penalized for needing time to grieve before making major housing decisions. By extending the $500,000 capital gains exclusion to widows and widowers who otherwise met the ownership and use requirements, this bill provides fairness, certainty, and flexibility, while including appropriate safeguards to prevent abuse. The National Association of REALTORS® applauds Rep. Tom Barrett for introducing legislation that puts people first and ensures the tax code does not add financial hardship to an already difficult moment.” “MBA welcomes the introduction of Rep. Tom Barrett’s legislation to give surviving spouses parity with married couples regarding the primary home ‘gain on sale’ exclusion,” said Bill Killmer, senior vice president of legislative & political affairs of the Mortgage Bankers Association. “Not only would the bill give those navigating such a major life change more ‘time to heal,’ it will also help address the ‘lock-in’ effect plaguing so many markets across the United States — and increase the inventory of available homes being made ready for sale.” Barrett also announced his support and co-sponsorship of the following proposals: Uplifting First-Time Homebuyers Act ( H.R. 3526 ): This bill would increase the IRA first-time homebuyer exemption to allow families to withdraw up to $50,000 from an IRA without owing the 10% early withdrawal penalty. The current exemption for first-time homebuyers only allows up to $10,000 penalty-free, but that amount hasn’t changed since it was created in 1997. The higher exemption would better reflect the rising cost of homes and give first-time homebuyers access to more capital to make a down payment. Housing Supply Framework Act ( H.R. 2840 ): This bill would require the U.S. Department of Housing and Urban Development (HUD) to develop best practices playbooks to help state and local governments cut red tape to build more housing – increasing supply and reducing costs. Families First Housing Act ( H.R. 6962 ): This bill would limit the ability of large corporations to buy up homes before families have a chance. It would create a 180-day “first look” period for single-family homes put on the market by the Federal Housing Administration, Fannie Mae, Freddie Mac, and other federal housing and lending agencies. During the first-look period for a home, only individuals, families, housing nonprofits, local governments, and community land trusts would be eligible buyers. These new proposals build on two additional pieces of legislation Barrett introduced last month to make homeownership more affordable, including: Home Affordability for Guard and Reserve Act ( H.R. 7009 ) to expand eligibility for VA home loans for members of the National Guard and Armed Forces Reserve. American Dream Act ( H.R. 7051 ) to incentivize older Americans to sell their homes, including secondary properties like rentals and vacation homes, by expanding the waiver of capital gains taxes on a sale to a first-time homebuyer. About Barrett’s Blueprint for a Better America Reviving the American Dream is the second of five pillars of Barrett’s Blueprint for a Better America. The congressman will continue to unveil additional proposals in the coming weeks to address all of the five key policy areas this agenda is built on: Restoring Trust in Government : Making Government Serve the People, Not Special Interests Reviving the American Dream: Helping Families Afford Homes in Mid-Michigan Making Health Care Affordable Again: Lowering Costs for Working Families Recalibrating American Foreign Policy: Ending Endless Wars and Promoting Peace Through Strength Reforming Campaign Finance: Putting Governing Before Campaigning Click here or visit barrett.house.gov/reform to learn more. ###