President Donald Trump reversed a significant housing affordability initiative on Thursday, discontinuing plans that would have allowed individuals to borrow from their 401(k) retirement accounts for home down payments. This decision marks a notable shift from the administration's earlier stance just one week prior, when leading economic officials described the policy as foundational to the president’s agenda in a potential second term.
The change of heart occurred while President Trump was en route to Washington after attending the World Economic Forum in Davos, where the policy was slated for formal announcement. Speaking to reporters aboard Air Force One, Trump expressed preference for safeguarding retirement funds over encouraging their use for upfront housing costs. “I like keeping their 401(k)s — I’m not a huge fan of putting down a deposit,” he said, highlighting his reservations.
Prior to the president’s statement, White House economic adviser Kevin Hassett had publicly indicated that the full details of the initiative were forthcoming, suggesting internal momentum behind the concept. Despite this, Trump’s comments reveal that concerns about preserving retirement savings during a time of favorable market conditions ultimately took priority in halting the policy.
The president underscored that the strong performance of retirement portfolios outweighed anticipated advantages from redirecting these resources into the housing market. “And one of the reasons I don’t like it is that their 401(k)s are doing so well,” Trump explained, clarifying the rationale behind his decision to shelve the proposal.