Housing for GenerationsA briefing for policymakers

Pitch document

Policy proposal · November 2026

Housing for Generations

By executive action, the President contributes Treasury’s shares of Fannie Mae and Freddie Mac into the Trump Account of every American child under 18. Those shares stay, and they are designated for a first-home down payment or purchase. Then comes the orderly conservatorship exit. As that conservatorship exit materializes, those shares could rise in value.

A massive Trump legacy. Housing for generations. It's time to end the conservatorship of Fannie Mae and Freddie Mac.

Promises made, promises kept.

The policy is stated as the action. Growth figures are hypothetical. They are not a forecast or a guarantee.

The action

The order is immediate: the warrants are exercised and the PSPA letter agreement is done. Then the New York Stock Exchange listing, then the shares go into the children’s Trump Accounts, then FHFA removes the duplicative capital buffers and dividends start, then the orderly conservatorship exit by December 31, 2027. No forced share sales: Treasury sells no common into the market, and the shares go directly into the Trump Accounts with no middleman. Census Vintage 2025 counts 72,021,348 children under 18.

This is a direct win for taxpayers and their kids. It is not a win for lobbyists, consultants, or insiders who make money off a prolonged conservatorship. The child gets a stake the child never had before. A home is how a household forms.

What each child holds

If the potential value of the shares is $400 billion or more, the equal share is about $5,500 of stock. The unrounded split is $5,554. From age 5 to 30, that stake could grow to $60,175 at 10% a year, $105,539 at 12.5%, or $182,829 at 15%. The public line rounds the 15% path to about $180,000, more than 40% of a typical home. If married at 30, a couple on that path could have about $360,000, about 86% of the October 2026 median existing-home price of $416,700. A new household. Today, the typical first-time home buyer is 40 (NAR 2026 Profile of Home Buyers and Sellers, median age). With Housing for Generations, she could be home by 30.

The drivers are the business and appreciation after the New York Stock Exchange listing. Dividends are reinvested in index funds within 30 days inside the account. Every growth figure in this paragraph is hypothetical.

Open the model to move the potential value, the age, and the hypothetical rate.

Why there is no inflation effect

No new money is spent into the economy. About 4 million young adults a year reach the shares, which stay invested until at least 18.

The companies

Treasury holds warrants for 79.9% of each company’s common, exercisable at $0.00001 a share, and senior preferred stock. At September 30, 2026 the liquidation preference was about $388 billion: $238.0 billion at Fannie Mae and $150.4 billion at Freddie Mac. It rises to about $395 billion on December 31, 2026. Net worth at September 30, 2026 was $119.6 billion at Fannie Mae and $81.0 billion at Freddie Mac. Both common stocks trade over the counter after the 2010 delisting from the New York Stock Exchange.

The companies take credit risk. They do not take bank-style interest-rate risk, because they have no deposits that can run. In 2008, credit losses that year were a fraction of 2.5%. That is a comparison to credit losses. It is not a capital cushion.

On October 20, 2026, Secretary Bessent put the ownership structure at next year, or the year after. The test he set is that agency mortgage-backed-security spreads must not widen. Director Pulte has said FHFA is locked and loaded.

Why the shares can go into a Trump Account

Trump Accounts are 26 U.S.C. §530A. Automatic enrollment was completed on October 1, 2026. Temporary regulations published September 30, 2026 allow a qualified stock contribution: exchange-listed domestic stock, from an eligible donor, in equal amounts to a qualified class, with a minimum hold of the earlier of five years or the end of the growth period. The New York Stock Exchange listing is what makes these shares qualify.

Five steps

Walk them one at a time on the steps page.

  1. Warrants exercised and the PSPA letter agreement. Immediate. Treasury and FHFA. Exercise the warrants at once, at $0.00001 a share, and complete the PSPA letter agreement. Treasury holds 79.9% of the common of Fannie Mae and 79.9% of the common of Freddie Mac. The agreement resolves the senior preferred and keeps the backstop.
  2. New York Stock Exchange listing. First quarter of 2027. The companies and FHFA. List both common stocks on the New York Stock Exchange. Both have traded over the counter since the 2010 delisting.
  3. Shares contributed into the Trump Accounts. Mid-2027. Treasury and the Trump Accounts trustee. Contribute the shares in equal amounts into every child’s Trump Account. They are designated for a first-home down payment or purchase.
  4. Remove duplicative capital buffers; dividends start. Mid-2027. FHFA. The Enterprise Regulatory Capital Framework is already in place. FHFA determines the duplicative buffers are not needed and removes them. Capital requirements are met. Dividends are paid into the children’s accounts and reinvested in index funds within 30 days.
  5. Orderly conservatorship exit. By December 31, 2027. FHFA. Complete the orderly conservatorship exit.

The authority

The authority is the President’s. Critics who sue will have to explain why kids shouldn’t have a stake in a home.

The commercial

One commercial carries the ask. It walks the $400 billion, the 72 million children, the about $5,500 share, and the hypothetical paths. The path forward includes warrant conversion and a PSPA agreement, the New York Stock Exchange listing, the contribution, the buffer removal, and the orderly conservatorship exit. It plays on the commercial page.

A massive Trump legacy. Housing for generations. It's time to end the conservatorship of Fannie Mae and Freddie Mac.

Sources