In order to first understand the reasons for passage of the Homestead act of 1862 it is important to also understand the historical contex. - During this time the United States felt they were Destined By God ( divine right theory) to expand across the continent, they used this theory to justify obtaining territory that was already occupied such as the annexation of Texas. - Some other factors that caused people to move out west were the Gold Rush and Pacific Railway Act!
Now as for your questions; the Homestead Act was passed by the government and it basically said that the government would give people land to move out west( was a way to encourage westward expansion), the government felt that westward expansion was crucial for the economy ( more room and land means more markets to sell too and access to greater natural resources), It was crucial for political aspects as well( It in a sense made the government seem strong if they were able to govern over such a vast and wide range of land accordingly), and It was crucial socially as well( the Homestead act would provide a way for people to connect)
- I hope this helped! Let me know if you need any extra clarification!