President Donald Trump said this week that he does not support allowing Americans to tap their 401(k) retirement accounts to help pay for a home down payment, distancing himself from an idea previously discussed by his own administration.
Speaking to reporters aboard Air Force One on Thursday, Jan. 22, as he returned from the World Economic Forum in Davos, Switzerland, Trump said he was wary of proposals that could weaken retirement savings.
He explained that one of his main concerns is the current performance of retirement accounts, which he said have been delivering strong returns. In his view, those gains should be protected rather than redirected toward housing purchases.
The comments appeared to slow momentum behind a proposal outlined earlier this month by Kevin Hassett, director of the White House National Economic Council. Hassett had said the administration was exploring a plan that would allow limited withdrawals from 401(k) accounts to help cover down payments, as part of a broader effort to make homeownership more accessible.
In a Jan. 16 interview with Fox Business, Hassett said the administration was still working through the details of how such a plan might operate and suggested the president would address it publicly while in Davos. That did not happen.
Instead, Trump used his appearance at the World Economic Forum to highlight a different approach to housing affordability. On Jan. 20, he signed an executive order aimed at preventing large institutional investors from buying up single-family homes, a practice critics say has pushed prices out of reach for many families.
Trump has promoted several housing-related initiatives in recent weeks, responding to ongoing concerns about rising costs and limited supply. However, his remarks this week suggested that retirement accounts are not something he is willing to risk in pursuit of those goals.
He emphasized that, in his view, the stock market and retirement plans have outperformed the housing market and should remain untouched. He cited anecdotal reports from individuals who told him their 401(k) balances had risen sharply over the past year.
Housing data shows that prices have risen modestly. According to the Federal Housing Finance Agency, home prices increased 1.7 percent between October 2024 and October 2025. Redfin reports that the national median home price reached $433,000 in November 2025.
Despite those increases, the broader housing market remains sluggish. The country continues to face a shortage of available homes, and pending home sales were down nearly 6 percent in December compared with the previous year.
For older Americans, particularly those nearing retirement or already living on fixed incomes, Trump’s comments may resonate as a signal that protecting long-term savings remains a priority, even as policymakers search for solutions to the nation’s housing challenges.