Treasury Secretary Scott Bessent announced that working Americans could receive tax refunds ranging from $1,000 to $2,000 per household in the first quarter of 2026. This financial relief is attributed to tax cuts included in President Donald Trump's One Big Beautiful Bill Act, which was passed in July. Bessent projected that the total refunds could amount to between $100 billion and $150 billion.

The legislation features provisions such as auto-deductibility and the elimination of taxes on tips, which are expected to contribute to these refunds. Bessent noted that many Americans have not yet adjusted their tax withholding, leading to the anticipated refunds next year. Following the receipt of these refunds, it is expected that U.S. residents will modify their withholding status to reduce the amount of tax deducted from their paychecks, resulting in a potential increase in take-home wages.

Additionally, Kevin Hassett, Director of the White House National Economic Council, indicated that Americans might see an extra $1,600 to $2,000 next year primarily through these tax refunds. However, critics of the One Big Beautiful Bill Act have raised concerns that it disproportionately benefits wealthier individuals while cutting essential services such as Medicaid and food assistance programs.