Sunday, January 25, 2026-President Trump has reversed course on a proposal that would have allowed homebuyers to tap their 401(k) retirement savings to help purchase a home. Speaking this week, Trump said he is “not a huge fan” of the idea, signaling a clear pullback from an initiative that had been floated by top economic advisers as part of a broader housing affordability push.
The plan would have allowed penalty-free access to retirement accounts for home purchases, but it quickly drew concern from financial experts and retirement advocates. Critics warned that using long-term retirement savings to address short-term housing challenges could leave Americans more vulnerable later in life, especially as markets have been performing strongly and retirement balances are recovering.
The reversal highlights ongoing internal debate over how far the administration should go to ease housing pressures without undermining financial security. While other housing measures remain under consideration, the 401(k) proposal now appears sidelined, reinforcing Trump’s position that retirement savings should remain protected, even amid rising home prices and affordability concerns.
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