The significance of the Homestead Act of 1862 was that it accelerated westward expansion in the United States by providing 160 acres of public land to settlers for a minimal fee. The Act encouraged the settlement of the western territories and aimed to promote agricultural development. It aimed to foster a land-owning democracy by granting land to homesteaders who would cultivate the land for five years. However, the Act also had adverse effects as it often disregarded the rights of Native Americans and led to conflicts over land. Ultimately, the Homestead Act played a crucial role in shaping the American landscape and demographic patterns.