American Dream for All Act

The "American Dream for All Act" establishes a pilot program under the Secretary of Housing and Urban Development to provide down payment assistance. This program will award capitalization grants to eligible entities , specifically agencies of States, territories, or Indian tribes, including housing finance agencies. These entities must establish or maintain a revolving loan fund, known as a "State loan fund," to distribute the assistance. Grant amounts will be proportional to the population served, and the funds must be used to provide down payment assistance loans ranging from 3 to 20 percent of a home's purchase price to eligible borrowers . Eligible borrowers are defined as first-time or first-generation homebuyers with incomes not exceeding 150 percent of the area median income, who have completed homebuyer education, and attest to being unable to pay more than 5 percent of the home's value. Upon the sale of the home, borrowers must repay the loan amount; if the home appreciated, they also repay a percentage of the appreciation, while depreciation only requires repayment of the original loan amount. Repaid funds are returned to the State loan fund for redistribution. The bill sets maximum loan amounts based on the cost of living in a State or Indian tribe, with tiers for low-cost ($50,000), medium-cost ($100,000), and high-cost ($150,000) areas, which will be annually adjusted. Grant recipients are required to submit annual reports to the Secretary detailing loan distribution and home sales. The Secretary must also report to Congress on the pilot program's implementation. Appropriations are authorized for fiscal years 2026 through 2030 to fund this initiative.