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Rep. Subramanyam moves to aid first-time homebuyers
Under the proposal, eligible individuals could save up to $10,000 annually tax-free, or $20,000 for joint filers, to use toward purchasing their first home.
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Malvika Choudhary - Wed, 10, Dec 2025
- 13:12 EST
- 9
Suhas Subramanyam / File Photo
Indian American Congressman Suhas Subramanyam introduced a bipartisan measure to ease one of the biggest barriers facing first-time homebuyers: saving for a down payment.
The First Home Savings Opportunity Act, introduced on Dec. 9 with Representative Ashley Hinson of Iowa’s 2nd District, would create tax-deductible savings accounts dedicated to down payments and closing costs.
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Under the proposal, eligible individuals could save up to $10,000 annually tax-free, or $20,000 for joint filers, to use toward purchasing their first home.
“Purchasing a home has become out of reach for far too many Americans because of housing costs, especially for young adults,” Subramanyam said in the announcement. He added that the measure “will make purchasing a home a little easier for first-time homebuyers,” even as broader affordability issues require further action.
Hinson said the bill aims to restore a critical pathway for middle-class families, noting that tax-free savings would help more families “afford their dream home.”
Housing industry groups offered early support. Tony Howard, president of the Loudoun Chamber of Commerce, described the bill as “a smart, forward-thinking solution” to a major barrier facing young families.
Shannon McGahn, chief advocacy officer at the National Association of REALTORS, said nearly half of potential buyers report being unable to afford a down payment, with the median age of first-time buyers now rising to 40. She said the bill would “help turn aspiration into action” by creating a dedicated, tax-deductible mechanism for down-payment savings.
The legislation comes as first-time buyers make up one of the smallest shares of the housing market in more than a decade, as high mortgage rates, elevated prices, and stagnant wage growth push homeownership further out of reach.
Subramanyam has made housing affordability a central focus of his work in Congress. This year, he secured $1 million for Hero’s Bridge to build affordable housing for aging veterans in rural Virginia and $1.2 million for Northern Virginia Community College to construct a Center for Building and Construction Trades to address regional workforce shortages.
He has also co-sponsored several housing-related bills, including the Affordable Housing Credit Improvement Act, the CONSTRUCTS Act, the Housing Supply Frameworks Act, the Saving the American Dream Act, and the Housing Financial Literacy Act.
He serves on the Real Estate Caucus and the New Democrat Coalition’s Task Force on Housing, Transportation, and Infrastructure.
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