President Donald Trump has expressed his opposition to a proposal that would allow Americans to withdraw funds from their 401(k) retirement accounts for down payments on homes. While on board Air Force One returning to Washington from the World Economic Forum in Davos, Switzerland, Trump stated, “I’m not a huge fan. Other people like it,” adding that he believes the performance of 401(k) plans has been strong enough to warrant keeping those funds intact.
This statement marks a significant deviation from the previous endorsement by one of Trump’s senior economic advisors, Kevin Hassett, who had announced plans for the administration to facilitate the use of 401(k) savings for home purchases. In a Jan. 16 interview with Fox Business, Hassett mentioned that the administration was working on finalizing the mechanics of this initiative, which was expected to be unveiled during Trump’s Davos visit. However, the president did not address the 401(k) proposal in his speech there.
Instead, Trump focused on a recently issued executive order intended to prohibit institutional investors from buying single-family homes, a move he claims would help lower housing costs for American families. Throughout his administration, Trump has introduced various policies aimed at boosting affordability amid rising cost-of-living concerns expressed by citizens.
Underscoring his preference for safeguarding retirement savings, Trump noted, “The housing market’s good, but the 401(k)s are doing much better than the housing market. I like keeping their 401(k)s in great shape.” He highlighted that 401(k) portfolios have reportedly appreciated by as much as 88% over the past year, suggesting that withdrawal for home purchases could jeopardize those gains.
In the context of the housing market, recent data reflects an overall increase in housing prices, with a reported 1.7% rise from October 2024 to October 2025, bringing the median home price in November 2025 to $433,000, as per the real estate company Redfin. However, the market is currently facing challenges, including a significant housing shortage and a nearly 6% decline in pending home sales in December compared to the previous year.
The administration continues to juggle various economic initiatives aimed at addressing pressing affordability issues while navigating the complexities of the housing market.
