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Congress passed the Homestead Act during the Civil War and included in the legislation a bounty for Union soldiers, who could deduct their period of military service from the five-year residency required for title to the land. Homesteads were granted only to those who had “never borne arms against the United States government.”
To secure homesteads to actual settlers on the public domain, and to provide a bounty for soldiers, in lieu of grants of the public lands.
Records of the U.S. Senate, National Archives and Records Administration