WASHINGTON (WOWO) — Republican Sen. Jon Husted of Ohio has introduced bipartisan legislation that would allow first-time homebuyers to use unused money from 529 college savings plans toward a home down payment.

Husted introduced the First-Time Homebuyer Empowerment Act with Democratic Sen. Michael Bennet of Colorado.

Under the proposal, individuals could transfer up to $35,000 in unused 529 plan funds tax-free to purchase their first home. Currently, money in 529 plans is generally limited to qualified education expenses or can be rolled into certain retirement accounts under existing federal law.

Supporters say the measure would give prospective homebuyers another option to help cover the cost of a down payment without creating a new taxpayer-funded program.

“Too many Ohioans have worked hard, saved responsibly and still struggle to afford a down payment,” Husted said in a statement. “By freeing up existing resources, I’m proud this bipartisan bill gives first-time homebuyers another tool to use in pursuing their version of the American Dream.”

Bennet said the legislation would help young people and working families who are struggling to afford their first home by allowing them to use savings they already have.

The bill has drawn support from the Mortgage Bankers Association, which said down payment costs remain a significant barrier to homeownership for many families.

Companion legislation has also been introduced in the U.S. House by Reps. Tom Barrett, R-Mich., Tracey Mann, R-Kan., Mark Alford, R-Miss., and Lou Correa, D-Calif.

The legislation has been referred for consideration in Congress. It must pass both the House and Senate before it could be sent to the president for approval.