WASHINGTON — President Donald Trump on Thursday rejected a plan endorsed by his top economic adviser that would allow Americans to use retirement savings from their 401(k) accounts to fund home down payments. Speaking to reporters aboard Air Force One as he returned from the World Economic Forum in Davos, Switzerland, Trump said he prefers keeping Americans’ 401(k) balances intact.
“I’m not a huge fan. Other people like it,” Trump said. “One of the reasons I don’t like it is that their 401(k)s are doing so well.”
The plan, previously outlined by National Economic Council Director Kevitt Hassett, was intended to help Americans access funds for home purchases amid rising housing costs. Hassett told Fox Business on Jan. 16 that the administration was finalizing a plan to allow limited 401(k) withdrawals for down payments and that Trump planned to discuss it in Davos.
However, the president did not mention the proposal during his Davos speech. Instead, he highlighted a Jan. 20 executive order aimed at curbing institutional investors from buying single-family homes, a move intended to ease affordability pressures in the housing market.
Trump emphasized the strong performance of retirement accounts, noting, “You’ve got people telling me they’re up 88%. Over a full year, it’s going to be close to 100%.” By contrast, the housing market has seen slower growth: housing prices rose 1.7% from October 2024 to October 2025, with the national median home price reaching $433,000 in November 2025, according to Redfin. Pending home sales also fell nearly 6% in December compared with a year earlier.
The announcement underscores ongoing tensions in White House policy discussions as officials weigh ways to make housing more affordable while protecting Americans’ long-term retirement savings.
