In 1862, Congress passed the revolutionary Homestead Act that sent thousands of Americans west in pursuit of free land. What was the history leading up to the 1862 Homestead Act?As the United States emerged as a new nation in the late 18th century, it accumulated title to land. This can provide asset protection from creditors for at least some of house's value. Unlike most states, Alaska does not impose an acreage limit for homestead exemptions. The most common real property exemption is the homestead exemption. Homesteading originated with President Lincoln signing the original Homestead. Act on May 20, 1862. This is called homesteading. The give-away land for this was used up in 1988.