The Homestead Act was signed on May 20, 1862 and designed to open up rural parts of the country for settlement. There were three requirements to get deed to 160 acres of land:
1. File an application with a filing fee of $10
2. Live on the land for 5 years, improve it by building a 12 x 14 building and grow crops
3. At the end of the five years, file for patent or deed of title and provide proof of residency and the required improvements (and submit another nominal filing fee)
The only requirements for application was that the person had to be over 21, a single male or Head of Household, and a US Citizen or intended citizen. Since the Act allowed non-citizens to file as long as they intended to become citizens, it had a profound effect on immigration and resulted in many first-generation immigrants taking advantage of the Homestead Act.
The provision stating that a Head of Household could file allowed single or widowed women to file for Homesteads as well. Also, many freed slaves applied for Homesteads since, unlike other land acts of the time, they were not excluded.
Title to the Homesteaded land could also be acquired after a 6-month residency and trivial improvements, provided the claimant paid the government $1.25 per acre. After the Civil War, Union soldiers could deduct the time they served from the residency requirements, and widows of Union soldiers could also deduct time served.
Physical conditions on the frontier meant that it wasn’t easy to “prove up” the homestead. Farming conditions were different then people had experienced in the eastern US or immigrants’ native countries. And some Homesteaders had never farmed before at all. The open plains in the mid-West forced many to build homes out of sod, and the lack of trees and hills resulted in strong winds and ferocious winter blizzards.
“Ironically, even the smaller size of sections took its own toll. While 160 acres may have been sufficient for an eastern farmer, it was simply not enough to sustain agriculture on the dry plains, and scarce natural vegetation made raising livestock on the prairie difficult. As a result, in many areas, the original homesteader did not stay on the land long enough to fulfill the claim.” -- http://www.archives.gov/education/lessons/homestead-act
Six months after the Homestead Act was passed, the Railroad Act was signed, and by May 1869, a transcontinental railroad stretched across the frontier. The new railroads provided easy transportation for homesteaders, and new immigrants were lured westward by railroad companies eager to sell off excess land at inflated prices.
On January 1, 1863, 418 people filed claims, including Daniel Freeman who was recognized as the first claimant. By 1934, over 1.6 million homestead applications were processed and more than 270 million acres—10 percent of all U.S. lands—passed into the hands of individuals. The passage of the Federal Land Policy and Management Act of 1976 repealed the Homestead Act in the 48 contiguous states, but it did grant a ten-year extension on claims in Alaska.
The Homestead Act was very beneficial to women, poor white citizens and freed slaves, but it was not so beneficial to Native Americans. Before the land could be opened for settlement, the native population was cleared and often forcibly relocated to reservations.