This article may contain commentary
which reflects the author’s opinion.
Treasury Secretary Scott Bessent announced Wednesday that working Americans will see significantly larger tax refunds next year, estimating that most households will receive between $1,000 and $2,000 during the first quarter of 2026. The increased refunds stem from tax reductions enacted under President Donald Trump’s One Big Beautiful Bill Act, which took effect this year.
Bessent said the Treasury Department expects to distribute between $100 billion and $150 billion in total refunds to U.S. households as a result of the changes.
“I think we’re going to see $100-$150 billion of refunds, which could be between $1,000, $2,000 per household,” Bessent said Wednesday.
Bessent said the expanded refunds are tied to several provisions in the new law, including automatic deductibility changes and the elimination of federal taxes on tips. He noted that most workers have not yet updated their tax withholding, which means they are likely to receive larger refunds when they file next year.
After receiving those refunds, Bessent said, Americans are expected to adjust their withholding to reflect the new rules — a shift that would reduce the amount of tax taken out of each paycheck going forward.
Bessent said workers should see a “real increase” in take-home pay once they update their withholdings to reflect the new tax rules. White House National Economic Council Director Kevin Hassett offered similar projections earlier in the week, saying Americans are likely to receive an additional $1,600 to $2,000 next year.
According to CNBC, Hassett noted that most of that increase would come in the form of larger tax refunds.
The One Big Beautiful Bill Act was approved by Congress in July and signed into law as part of President Trump’s broader budget and tax agenda.
Democrats opposed the measure, including the ‘no tax on tips’ provision, after falsely claiming that the bill disproportionately benefitted higher-income households.
Opponents also argued that the legislation would reduce funding for essential services, including Medicaid and food assistance programs, but Republicans countered that the reduction would cut out waste, fraud, and abuse.
The Treasury Department has projected that the forthcoming refunds will provide immediate financial relief to working households nationwide.
The tax policy changes mark one of the administration’s most significant economic initiatives intended to increase take-home pay for American workers.
Last month, Commerce Secretary Howard Lutnick said he was confident the Trump administration would prevail in its pending Supreme Court case over tariffs, defending the administration’s aggressive trade approach as a necessary measure to protect U.S. manufacturers.
“One of the ways to prove to the American people how great tariffs are is to have them share in a part of one year’s income from these tariffs and that’s $2,000 a head for people who need the money,” he explained to Fox Business’ Maria Bartiromo.
Vice President JD Vance is scheduled to travel to Pennsylvania next week to deliver remarks on the economy and the rising cost of living, as the administration intensifies its efforts to assure voters that it is prioritizing affordability issues, a spokesperson said.
Vance will speak next Tuesday at an event near Allentown, and is expected to reinforce Trump’s economic message from a similarly themed appearance in Mount Pocono earlier in the week.
“President Trump has made enormous strides in reversing the affordability crisis left behind by Democrats. From the historic working families tax cuts to over $18 trillion worth of investment in America, the benefits of the Trump economic agenda have only begun to kick in and there is more work to be done in the new year,” a Vance spokesperson told CNN in announcing Vance’s upcoming travels.
“Expect Vice President Vance to emphasize the fact that making America affordable again is the number one priority of the Trump administration,” the spokesperson said, per the outlet.
