U.S. Treasury Secretary Scott Bessent said a major tax cut backed by the Trump administration helped Americans avoid what he described as a looming $4.5 trillion tax increase, while putting more money directly into workers’ paychecks starting this year.
Speaking at a recent event hosted by the Minnesota Economic Club, Bessent argued that the new law is already delivering tangible financial relief. According to the secretary, the average American could retain as much as $7,200 more per year in real wages, while a typical family of four may see up to $10,900 more in take-home pay under the Working Families Tax Cut provisions included in the GOP-backed One Big Beautiful Bill Act.
The Internal Revenue Service has confirmed that several provisions of the new tax law are scheduled to take effect this year. In a January update, the agency projected that roughly 164 million individual tax returns will be filed during the 2026 tax season, which begins on January 26.
Over recent weeks, Donald Trump, along with Bessent and other senior administration officials, has repeatedly highlighted the law’s tax measures, portraying them as a boost for working families and middle-income households.
Beyond tax policy, the administration has also turned its attention to housing affordability. This week, Trump announced several executive actions aimed at easing pressure on the U.S. housing market, including a move that could restrict large institutional investors from purchasing additional single-family homes. The president framed the initiative as a way to improve homeownership opportunities for younger Americans.
Trump also revealed plans for the federal government to purchase $200 billion in mortgage-backed securities, a step he said would help bring down mortgage rates and monthly payments. He shared the announcement on Truth Social, emphasizing affordability for prospective homeowners. The transactions will be carried out through Fannie Mae and Freddie Mac, according to Federal Housing Finance Agency Director Bill Pulte.
During his Minnesota remarks, Bessent also addressed alleged large-scale fraud involving federal entitlement programs in the state. He described Minnesota as a focal point of what could become one of the most serious welfare fraud cases in recent history.
The Treasury Department, he said, is intensifying efforts to recover stolen federal funds and prosecute those responsible, stressing that these actions will not be limited to Minnesota alone. The department plans to expand investigations nationwide to prevent similar schemes in the future.
Recent announcements by Homeland Security Secretary Kristi Noem and FBI Director Kash Patel confirmed increased federal operations in Minnesota, following online allegations that some daycare centers had misused millions in public funds.
Bessent concluded by reaffirming the Treasury Department’s commitment to accountability, saying billions of dollars meant for vulnerable families, seniors, and children were allegedly diverted through fraud. He added that federal authorities are determined to recover the funds and ensure those responsible face prosecution.