# 119-hr-7422: NEST Act

119-hr-7422, NEST Act, is a 119th Congress bill sponsored by Rep. Cammack, Kat [R-FL-3] (R-FL); status introduced; PRIA reads it as touching household money (as of 2026-04-21).

- Canonical: https://policyrisk.com/legislation/119-hr-7422
- As of: 2026-04-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-7422
- Congress: 119
- Title: NEST Act
- Status: introduced
- Introduced: 2026-02-09
- Sponsor: Rep. Cammack, Kat [R-FL-3] (R-FL)
- Cosponsors: 1
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-04-21

## Summary

**A tax-advantaged savings account for first-time homebuyers.** This bill creates First-Time Homebuyer Savings Accounts that let eligible people deduct contributions, save investment gains tax-free for qualified home purchase costs, and set contribution caps tied to state home prices. - Families and first-time buyers: Contributions to an account are deductible and qualified distributions for home ownership costs are excluded from income. Accounts require no prior principal residence ownership in the past 3 years and contributions are limited by a state threshold equal to 20 percent of the state median home sale price. - Employers and workers: Employer contributions to these accounts are excluded from employees' gross income and from employment taxes and must be reported on W-2 forms. - Tax administration and compliance: Trustees must report annually to the IRS and beneficiaries, and the bill adds new excise and prohibited-transaction rules. Excess contributions face a new excise tax and nonqualified withdrawals are taxed and subject to a 20 percent additional tax, and the rules apply to taxable years beginning after December 31, 2025.

## Cosponsors (1)

- Del. Moylan, James C. [R-GU-At Large] (R-GU), 2026-02-09T00:00:00.000Z

## Provisions PRIA read

- Employer contributions to homebuyer accounts: benefit, medium. If enacted, employer amounts contributed to an employee's FTHSA would not be included in the employee's gross income. Those employer contributions would also be excluded from wages for Social Security, Railroad Retirement, and unemployment tax bases when it is reasonable to expect the contribution…
- Penalties for wrong homebuyer withdrawals: cost, medium. If enacted, any FTHSA distribution not used only for qualified home costs would be taxable to the beneficiary. You would also owe an extra tax equal to 20 percent of the includible non‑qualified amount, except for distributions after the beneficiary's death. The bill would treat excess contribution…
- New tax-free homebuyer savings account: mixed, high. If enacted, the bill would create a new First-Time Homebuyer Savings Account (FTHSA) held as a U.S. trust. You would be able to deduct cash you put into your FTHSA (an above-the-line deduction) subject to yearly and lifetime limits. Lifetime contributions would be capped at 20% of your State's medi…
- Reporting, rollovers, and account rules: mixed, low. If enacted, trustees must report FTHSA contributions, distributions, and other details to the IRS and to account beneficiaries. You would be able to roll over FTHSA distributions to another FTHSA tax‑favored if you redeposit within 60 days, but only once in any 1‑year period. The bill would apply s…

## Related bills

- 119-hr-4669: FEMA Act of 2025
- 119-hr-3151: SHIPS for America Act of 2025
- 119-hr-3816: Weather Act Reauthorization Act of 2025
- 119-hr-842: Nancy Gardner Sewell Medicare Multi-Cancer Early Detection Screening Coverage Act
- 119-hr-3277: Ensuring Lasting Smiles Act
- 119-hr-4317: PBM Reform Act of 2025

## Sources
- [119-hr-7422 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/7422)

## Related
- [119-hr-4669: FEMA Act of 2025](https://policyrisk.com/legislation/119-hr-4669)
- [119-hr-3151: SHIPS for America Act of 2025](https://policyrisk.com/legislation/119-hr-3151)
- [119-hr-3816: Weather Act Reauthorization Act of 2025](https://policyrisk.com/legislation/119-hr-3816)
- [119-hr-842: Nancy Gardner Sewell Medicare Multi-Cancer Early Detection Screening Coverage A…](https://policyrisk.com/legislation/119-hr-842)
- [119-hr-3277: Ensuring Lasting Smiles Act](https://policyrisk.com/legislation/119-hr-3277)
- [119-hr-4317: PBM Reform Act of 2025](https://policyrisk.com/legislation/119-hr-4317)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-7422 (as of 2026-04-21).