Draft bill would match first-time homebuyers' savings with up to $50,000 federal aid

Democratic Senators Jeff Merkley and Ron Wyden are set to unveil the Homeownership Promise Act, a draft bill that would create a 5-to-1 federal matching program for first-time homebuyers. Eligible savers could receive up to $50,000 in federal assistance, meaning a $10,000 personal contribution could be matched with $50,000 from the government. The program imposes no income limit but restricts purchases to homes priced at or below the median in the buyer’s local market.

Savings must be deposited with Treasury-approved Community Development Financial Institutions, while contributions from employers or nonprofits would be excluded from the match. The proposal responds to rising mortgage rates and high home prices that have made entry into the housing market increasingly difficult. It follows a recent bipartisan housing bill that focused on construction incentives rather than direct buyer assistance. Merkley argues the act would restore homeownership prospects for working families.