A more thorough explanation:

The Homestead Act of 1862 was a law signed by President Abraham Lincoln that allowed citizens who were heads of a family or 21 years old to claim 160 acres of land in the "unsettled" West. If they lived on the land for five years and made improvements on it such as building a home and planting crops, they could keep the land after filing with the nearest land office for a nominal fee.

For example, if a family moved to the West and built a house and planted crops on their 160 acres of land, they could keep the land after five years and paying a small fee to the government.

The Homestead Act was created to encourage people to move to the West and reduce strains on cities while promoting economic growth. It was the beginning of a series of land grant legislation that attempted to push Westward expansion. However, the Act faced opposition from Southern states who feared that it could lead to more Northern aligned states, especially since African Americans could potentially claim homestead rights. After the Southern states left the U.S., a Homestead Act quickly became law.

The Homestead Act has long-lasting marks and implications for the country. Homesteads were still claimable under federal law until the Federal Land Policy and Management Act of 1976 prevented any more homestead claims under the Homestead Act, except those in Alaska. However, litigation continues to this day, with conflicts arising between existing claimants of homestead land and mass land grants given to railroad companies to build long routes.