The president will put the final plan out in Davos next week, according to Hassett.
President Donald Trump will next week unveil a plan for letting savers in 401(k) retirement plans use some of their money for down payments on a home purchase, according to National Economic Council Director Kevin Hassett.
"We're going to allow people to take money out of their 401(k)s and use that for a down payment," Hassett said on Fox Business Friday. "The president will put the final plan out in Davos next week," he said, referring to the annual World Economic Forum in Davos, Switzerland that he plans to attend with the president.
Hassett said that the mechanics of deploying assets from a 401(k), which is an employer-sponsored retirement savings plan, for a home purchase are still being worked out. "Suppose that you put 10% down on a home, and then you take 10% of the equity of the home and put it in as an asset in your 401(k). Then your 401(k) will grow over time," he said.
While employees are able to borrow or withdraw 401(k) money for home purchases currently, such moves are limited and can involve fees or taxes, depending on the age of the saver.
The high cost of housing -- most Americans' largest monthly expense -- is a key concern heading into the midterm congressional elections in November, after home prices soared and mortgage rates doubled in the wake of the pandemic.
'Trump Cards'
Hassett also touted Trump's move last week to direct ordering Fannie Mae and Freddie Mac to buy $200 billion of mortgage bonds in an effort to make 30-year fixed rate home loans more affordable. "The basic idea is that if you get the spread down on the interest rate for mortgages," Hassett said.
"We've seen a pretty big reaction to the announcement, and I think that actually makes us all feel better - because the truth is that fewer people are buying homes right now than we've seen pretty much in my lifetime," the NEC chief said.
Trump also last week called for putting a 10% cap on credit card interest rates, a move that triggered strong opposition from large financial institutions that issue cards. Hassett said the administration has been in talks with banking executives on how to serve borrowing needs of individuals at the margins of the financial system.
"We've been in conversations with the big banks, with CEOs of many of the big banks who think that the president's on to something -- that he's got a great idea," Hassett said. "They could potentially voluntarily provide for people who are in that sort of sweet spot -- of not having financial leverage very much because they don't have access to credit but they have enough income and stability in their in their lives so that they're worthy of credit."
Hassett said "there'll be really great new 'Trump cards' presented for folks that are voluntarily provided by the banks." He also said the administration's expectation is "that it won't necessarily require legislation."
The NEC director separately suggested some doubt over whether Republicans will pursue a second so-called reconciliation bill -- which allows the GOP majority to bypass Democrats on certain fiscal legislation. Last year's reconciliation bill was Trump's signature tax cut.
Hassett said in the end, it will be up to Senate Majority Leader John Thune and House Speaker Mike Johnson to decide whether there's GOP backing to allow for a 2026 reconciliation bill.
"The president is discussing with congressional leaders whether we should do that," Hassett said. Johnson and Thune "are going to have to count the votes and decide whether they can pull it off. But, if they can, we'll celebrate here at the White House."