These days, buying your first home can feel less like a milestone and more like trying to push a stone up a hill. Affordability and inventory are lower and buyers who can qualify for a mortgage often struggle with the upfront cash needed for a down payment and closing costs.

That is why the proposed First-Time Home Buyer Empowerment Act deserves attention.

Introduced in the U.S. House in February as H.R. 7468, the bill would allow certain first-time homebuyers to use unused 529 education savings funds toward the purchase of a first home without the usual tax penalty tied to non-education withdrawals. As of late March, the bill has been introduced and referred to the House Committee on Ways and Means.

The idea is simple, many families have money set aside in 529 accounts for education. Sometimes those funds are not fully used. This bill would give first-time buyers another option by allowing some of that money to be redirected toward buying a principal residence.

Under the bill text, eligible buyers could use up to $35,000 from a 529 account for a first home purchase, as long as the account has been open for at least 15 years. The bill also says contributions made within the previous five years would not count, and the money generally must be used within 60 days of distribution for the home purchase.

There is also an important safeguard. If a transaction falls apart, the bill allows a path to put the money back within a limited period. And because the proposal is aimed at true owner-occupants, it includes a recapture provision if the property is sold or stops being the buyer’s principal residence within five years.

Would this solve Santa Barbara’s affordability problem? Let’s not kid ourselves. In this market, $35,000 is meaningful, but it is not a miracle. It will not suddenly create more housing supply, lower interest rates, or make South Coast real estate inexpensive.

But it could help real people. This matters in Santa Barbara because we are not talking about theoretical buyers. We are talking about professionals, teachers, health care workers, and local families who want to put down roots here but are being squeezed from every angle. If we are serious about helping the next generation of homeowners, we need policies that address the actual cost of getting started.

For now, though, this remains only a proposal. The First-Time Home Buyer Empowerment Act has been introduced, but it still must move through Congress and be signed into law before buyers can use it. The bill text says it would apply to distributions made in tax years beginning after enactment, which means nothing changes until the bill is passed.

In a market like Santa Barbara, there is no single bill that will make homeownership easy. But practical steps still matter. Helping first-time buyers unlock funds they have already saved, or that their families saved for them, is the kind of targeted idea that at least moves the conversation in the right direction.

And right now, a small step in the right direction is better than standing still.

Jennifer Berger is a top producing, third generation California REALTOR® with Compass, bringing 28 years of experience in residential real estate serving Santa Barbara and its surrounding communities. She currently serves as President of the Board of Directors for the Santa Barbara Association of Realtors. She can be reached at 805-451-5484 or jennifer.berger@compass.com