Just Released “American Dream Act” Applauded by Conservative and Faith-Based Groups to Boost Housing Affordability
WASHINGTON, D.C. (January 16, 2026) — A coalition of conservative and faith-based organizations applauded the introduction of the American Dream Act in the U.S. Congress by Representative John McGuire, legislation aimed at increasing the supply of homes available to first-time homebuyers by encouraging more listings from older sellers.
The American Dream Act would amend the tax code to allow an exclusion from capital gains taxation when a home seller is age 65 or older and sells a home to a first-time homebuyer, provided the sale price does not exceed $500,000. The exclusion is designed to help bring more homes to market for first-time buyers by reducing a major tax barrier that can discourage sales.
A central affordability challenge is the long delay in the resale of many homes purchased years ago as investment rental properties. As owners age, significant capital gains exposure can make selling financially unattractive, leading many to hold properties until death – when heirs may benefit from stepped-up basis treatment – keeping potential starter homes off the market for years or even decades.
“Conservatives have always recognized that capital gains taxes are double taxation and distort real-life decisions families make,” said Ryan McGowan, CEO of the Institute for Legislative Analysis. “The American Dream Act is a conservative solution that removes a powerful disincentive to sell, bringing more homes onto the market and giving first-time homebuyers a real opportunity to achieve the American dream of ownership. It’s a practical policy that Republicans and Democrats can rally around because it expands supply and strengthens the economy without growing government.”
Housing affordability is a growing concern for employers and communities, with ripple effects for workforce stability, local investment, and family formation.
“Housing affordability is a defining issue for the strength of families, the stability of our workforce, and the health of our communities,” said Margaret Iuculano, President of the Christian Employers Alliance. “Real estate is also a major part of many small business owners’ portfolios, and a stronger housing market helps spur broader economic growth across construction, trades, and local services. From a faith perspective, we want policies that help families put down roots, build secure futures, and strengthen the communities where they live and serve. The American Dream Act is a common-sense step toward expanding access to homeownership.”
About the Institute for Legislative Analysis
The Institute for Legislative Analysis is a conservative policy hub that houses the most comprehensive voting databases on the U.S. Congress.
About the Christian Employers Alliance
Christian Employers Alliance is a faith-based business organization representing Hobby Lobby and over 22,000 Christian-owned businesses across its eco system.
Media Contacts
Institute for Legislative Analysis: press@limitedgov.org
Christian Employers Alliance: media@christianemployersalliance.org
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