A lot has changed since President Abraham Lincoln signed the Homestead Act in 1862. What Does Homestead Mean?The Act gave American citizens and immigrants the right to claim up to 160 acres of land. The Homestead Act of 1862 had an immediate and enduring effect on the United States of America and the world that is still felt today. Abraham Lincoln signed the Homestead Act into law on May 20, 1862. The law allowed Americans to claim 160 acres of the public domain for a small filing fee. Digitized homestead records from the National Archives now available online for Arizona, Illinois, Indiana, Nevada, and Ohio. In 1862 Abraham Lincoln signed the Homestead Act into law promising U.S. citizens and immigrants free land in the West. General homestead exemption. The president signed the bill into law on July 2, 1862.