# 119-hr-6542: First Home Savings Opportunity Act of 2025

119-hr-6542, First Home Savings Opportunity Act of 2025, is a 119th Congress bill sponsored by Rep. Subramanyam, Suhas [D-VA-10] (D-VA); status introduced; PRIA reads it as touching household money (as of 2026-10-07).

- Canonical: https://policyrisk.com/legislation/119-hr-6542
- As of: 2026-10-07
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-6542
- Congress: 119
- Title: First Home Savings Opportunity Act of 2025
- Status: introduced
- Introduced: 2025-12-09
- Sponsor: Rep. Subramanyam, Suhas [D-VA-10] (D-VA)
- Cosponsors: 6
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-10-07

## Summary

**Creates tax-deductible Down Payment Savings Accounts (DPSAs) for first-time homebuyers.** This bill would let individuals save cash in a dedicated trust and deduct contributions when used for a home's down payment or closing costs. - First-time buyers and families: Contributions of cash to a DPSA can be deducted and withdrawals used for qualified down payment or closing costs are tax-free. Deductions are capped at $10,000 per person or $20,000 for joint filers. - Higher-income filers: The deduction phases out starting at $150,000 modified adjusted gross income for singles and $236,000 for joint filers. - Banks and account rules: DPSAs must be held by a bank or an IRS-acceptable trustee and carry new reporting duties and penalties. Nonqualified distributions are included in income and generally face a 20% additional tax, with rollovers and limited exceptions for death or disability.

## Cosponsors (6)

- Rep. Min, Dave [D-CA-47] (D-CA), 2026-10-05T00:00:00.000Z
- Rep. Hinson, Ashley [R-IA-2] (R-IA), 2025-12-09T00:00:00.000Z
- Rep. Thanedar, Shri [D-MI-13] (D-MI), 2025-12-09T00:00:00.000Z
- Del. Norton, Eleanor Holmes [D-DC-At Large] (D-DC), 2025-12-09T00:00:00.000Z
- Rep. Bynum, Janelle S. [D-OR-5] (D-OR), 2026-01-12T00:00:00.000Z
- Rep. Davids, Sharice [D-KS-3] (D-KS), 2026-09-01T00:00:00.000Z

## Provisions PRIA read

- Tax deduction for first-time buyers: benefit, high. If enacted, you would be able to deduct cash you put into a special down-payment account from your federal taxable income. The deduction would be limited to your earned income or $10,000 ($20,000 if married filing jointly) per year. The deduction phases out when your MAGI is over $150,000 ($236,000…
- New rules for down payment accounts: benefit, low. If enacted, the bill would create a special U.S. trust account for first-time homebuyers to save for down payments and closing costs. You must be at least 18, be a first-time buyer (no home ownership in the prior three years), and make cash contributions yourself. Trustees must be banks or IRS‑appr…
- Tax rules and penalties for withdrawals: mixed, medium. If enacted, withdrawals from these down-payment accounts used only for a qualified first-home down payment or closing costs would be tax-free. Money taken out for other purposes would be included in income and could face a 20% additional tax, with exceptions for death or disability. You could roll…
- Account termination and tax exceptions: mixed, low. If enacted, the bill would apply rules like existing retirement-account rules when a down-payment account ends, and would treat such treated amounts as not used for qualified expenses. It would add death and divorce rules like similar tax accounts. The bill would also add limited prohibited-transac…
- Trustee reporting and penalties: mixed, low. If enacted, trustees of down-payment accounts would have to report contributions, distributions, rollovers, and earnings to the IRS and give statements to account holders. For rollovers, the old account custodian must report amounts and earnings to the new trustee. Trustees who fail to file could f…

## Related bills

- 119-hr-9877: Health Equity and Accountability Act of 2026
- 119-hr-7977: Energy Bills Relief Act
- 119-hr-7973: Momnibus Act
- 119-hr-1262: Mikaela Naylon Give Kids a Chance Act
- 119-hr-1004: Love Lives On Act of 2025
- 119-hr-842: Nancy Gardner Sewell Medicare Multi-Cancer Early Detection Screening Coverage Act

## Sources
- [119-hr-6542 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/6542)

## Related
- [119-hr-9877: Health Equity and Accountability Act of 2026](https://policyrisk.com/legislation/119-hr-9877)
- [119-hr-7977: Energy Bills Relief Act](https://policyrisk.com/legislation/119-hr-7977)
- [119-hr-7973: Momnibus Act](https://policyrisk.com/legislation/119-hr-7973)
- [119-hr-1262: Mikaela Naylon Give Kids a Chance Act](https://policyrisk.com/legislation/119-hr-1262)
- [119-hr-1004: Love Lives On Act of 2025](https://policyrisk.com/legislation/119-hr-1004)
- [119-hr-842: Nancy Gardner Sewell Medicare Multi-Cancer Early Detection Screening Coverage A…](https://policyrisk.com/legislation/119-hr-842)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-6542 (as of 2026-10-07).