# 119-s-4026: American Dream Accounts Act of 2026

119-s-4026, American Dream Accounts Act of 2026, is a 119th Congress bill sponsored by Sen. Scott, Rick [R-FL] (R-FL); status introduced; PRIA reads it as touching household money (as of 2026-08-13).

- Canonical: https://policyrisk.com/legislation/119-s-4026
- As of: 2026-08-13
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-4026
- Congress: 119
- Title: American Dream Accounts Act of 2026
- Status: introduced
- Introduced: 2026-03-09
- Sponsor: Sen. Scott, Rick [R-FL] (R-FL)
- Cosponsors: 0
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-08-13

## Summary

**Creates a tax-exempt American Dream Accounts program to help U.S. citizens save for home purchases and related qualified expenses.** This bill would establish detailed rules for contributions, tax treatment of withdrawals, rollovers, penalties, trustee duties, and annual reporting.

## Provisions PRIA read

- New trustee and reporting rules: benefit, low. If enacted, trustees and custodians of ADAs would face new rules and reporting duties. Trustees would generally need to be banks or show they can administer ADAs. They would accept cash only, not invest ADA assets in life insurance, keep assets separate, and treat beneficiaries' interests as nonfor…
- New tax-advantaged home savings account: benefit, low. If enacted, the bill would create a new American Dream Account (ADA) for U.S. citizens. ADAs would have to be U.S. trusts and would be tax-exempt under the Internal Revenue Code while remaining subject to unrelated business income tax. The accounts would be intended mainly to save for first-time ho…
- Limits and penalties on ADA contributions: cost, high. If enacted, yearly ADA contributions would be limited to the lesser of $7,500 (or $10,000 if you are age 35 before year-end) or the remaining lifetime cap. The bill would cap lifetime contributions at $250,000 per beneficiary, reduced by prior contributions. Certain rollovers would not count toward…
- Tax-free withdrawals for first homes: mixed, high. If enacted, ADA distributions used to buy a first home could be excluded from taxable income under a special rule. The exclusion would be capped at $500,000 generally, or $250,000 when the home is acquired jointly and another person made ADA distributions in connection with the purchase. You could…
- New rollover rules for ADA funds: mixed, low. If enacted, some ADA rollovers would be allowed but with strict limits. You could redeposit a distribution within 60 days to another ADA for the same beneficiary. Direct trustee-to-trustee transfers could move ADA money to a family-member's ADA or into a Roth IRA for the same beneficiary. Same-bene…

## Related bills

- 119-s-2120: Older Americans Act Reauthorization Act of 2025
- 119-s-1541: SHIPS for America Act of 2025
- 119-s-1748: Kids Online Safety Act
- 119-s-4782: ReportScams.gov Act
- 119-s-4280: SAFE Act
- 119-s-690: Overdose RADAR Act

## Sources
- [119-s-4026 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/4026)

## Related
- [119-s-2120: Older Americans Act Reauthorization Act of 2025](https://policyrisk.com/legislation/119-s-2120)
- [119-s-1541: SHIPS for America Act of 2025](https://policyrisk.com/legislation/119-s-1541)
- [119-s-1748: Kids Online Safety Act](https://policyrisk.com/legislation/119-s-1748)
- [119-s-4782: ReportScams.gov Act](https://policyrisk.com/legislation/119-s-4782)
- [119-s-4280: SAFE Act](https://policyrisk.com/legislation/119-s-4280)
- [119-s-690: Overdose RADAR Act](https://policyrisk.com/legislation/119-s-690)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-4026 (as of 2026-08-13).