Updated January 22, 2026, 8:01 PM ET
WASHINGTON – President Donald Trump has come out against a proposal supported by one of his top economic advisors that would let Americans tap into their 401(k) retirement savings for home down payments.
“I’m not a big fan. Others like it too,” he told reporters during a flight back to Washington from the World Economic Forum in Davos, Switzerland, on January 22. “And one reason for my hesitation is that their 401(k) is doing very well.”
Trump’s comments signal a shift in the White House’s stance, particularly after National Economic Council Chairman Kevitt Hassett had indicated that the administration was finalizing a plan allowing the use of 401(k) funds for down payments. There had been talk of rolling out a series of initiatives addressing housing issues.
“We’re going to allow people to take money out of their 401(k) and use it for a down payment,” Hassett mentioned in a January 16 interview, also noting that Trump was expected to announce the plan at Davos. “We are still discussing how it will work,” he said.
Interestingly, Trump did not mention this plan during his speech at the World Economic Forum. Instead, he highlighted a presidential order issued on January 20 that prohibits institutional investors from buying single-family homes, a move aimed at helping reduce housing costs for everyday Americans.
As the American public expresses growing concerns over rising living costs, Trump has introduced various policy measures to tackle affordability. However, the 401(k) proposal for home down payments seems to be off the table.
“The housing market is strong, but the 401(k) is doing much better than the housing market. I like to keep my 401(k) in good shape,” he stated, adding, “Some people are saying it’s an 88% increase. And if you look at it over a full year, it’s closer to 100%.”
According to a report from the Federal Housing Finance Agency released last December, home prices in 2025 experienced a 1.7% increase from October 2024 to October 2025, with the national median home price reaching $433,000 in November 2025, as noted by real estate company Redfin.
The U.S. is grappling with a significant housing shortage along with a stagnating market, as pending home sales fell nearly 6% in December compared to the previous year.
