Trump Opposes Proposal to Use 401(k) for Home Downpayments

President says he's "not a huge fan" of the idea backed by his economic advisor

Jan. 29, 2026 at 8:55am

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President Donald Trump expressed opposition to a proposal backed by his economic advisor Kevin Hassett that would allow Americans to tap into their 401(k) retirement savings for home downpayments. Trump said he's "not a huge fan" of the idea, noting that 401(k) balances are "doing so well" and he doesn't want to see people withdraw from those accounts.

Why it matters

The proposal to allow 401(k) withdrawals for home purchases is aimed at helping more Americans achieve homeownership, but it faces opposition from financial advisors who warn it could undermine retirement savings. Trump's rejection of the idea signals the administration is unlikely to pursue such a policy change.

The details

Hassett, the director of the National Economic Council, had told Fox Business on January 16 that the president would unveil an initiative to allow 401(k) withdrawals for home downpayments while at the World Economic Forum in Davos, Switzerland. However, Trump said he's "not a huge fan" of the proposal, noting that 401(k) balances have reached record highs and he doesn't want to see people withdraw from those accounts.

  • On January 16, Hassett said the president would unveil the 401(k) for home downpayment initiative while at the World Economic Forum in Davos, Switzerland.
  • On January 24, Trump expressed his opposition to the proposal while speaking to reporters aboard Air Force One.

The players

Donald Trump

The 45th President of the United States who expressed opposition to a proposal to allow 401(k) withdrawals for home downpayments.

Kevin Hassett

The director of the National Economic Council who had proposed allowing Americans to tap their 401(k) savings for home purchases, an idea that Trump rejected.

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What they’re saying

“I'm not a huge fan. Other people like it.”

— Donald Trump, President of the United States (newsdirectory3.com)

“One of the reasons I don't like it is indeed that their 401(k)s are doing so well.”

— Donald Trump, President of the United States (newsdirectory3.com)

The takeaway

Trump's rejection of the 401(k) for home downpayment proposal signals the administration is unlikely to pursue such a policy change, despite the potential benefits for homeownership. The president's opposition highlights his focus on preserving the strong performance of retirement accounts rather than tapping into them for other purposes.