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Working Americans will soon see a sizable financial boost — all thanks to changes tied to President Donald Trump’s “One Big Beautiful Bill,” according to Treasury Secretary Scott Bessent.
Speaking to a reporter in Pennsylvania on Dec. 10, Bessent said an estimated $100 billion to $150 billion in tax refunds could hit bank accounts in the first quarter of 2026.
Bessent said Trump fought more than anyone else for his signature initiatives in the One Big Beautiful Bill, pointing to provisions such as no tip tax, no overtime tax and the automatic deduction (1).
“The bill passed in July. Working Americans didn’t change their withholding, so they’re going to be getting very large refunds in the first quarter. So I think we’re going to see $100 to $150 billion of refunds, which could be between $1,000 and $2,000 per household.”
After that, once retention levels adjust, workers could see what he described as a “real increase” in their wages.
The White House echoed that perspective. Press Secretary Karoline Leavitt said that the next season of refunds is predicted to be the biggest on record.
“Americans can also expect another boost to their bank accounts in the coming months as the 2026 tax refund season is upon us after the holidays and is predicted to be the biggest ever,” Leavitt said at a press briefing on December 11 (2).
For many households, this raises an immediate question: What’s the smartest way to use a sudden cash infusion? Whether you’re thinking about consolidating your finances, preparing for uncertainty, or putting that extra cash to work, here are a few ways Americans can consider investing their potential earnings.
The US stock market has been a powerful wealth creation engine. Trump pointed to that strength, recently saying, “the only thing that’s really going up big? It’s the stock market and your 401(k)s (3).”
The benchmark S&P 500 is up about 16% year-to-date and has gained roughly 86% over the past five years.
Of course, consistently picking winning stocks is not easy. That’s why legendary investor Warren Buffett argues that most people don’t need to pick individual companies to benefit from the long-term growth of the stock market.
“In my view, for most people, the best thing to do is own the S&P 500 index fund,” Buffett famously stated (4).
This approach gives investors exposure to 500 of America’s largest companies in a wide range of industries, and provides immediate diversification without the need for constant monitoring or active trading.
The beauty of this approach is its accessibility – anyone, regardless of wealth, can take advantage of it. Even small amounts can grow over time with tools like Acorns, a popular app that automatically invests your spare change.
Signing up for Acorns takes just minutes: Link your cards and Acorns rounds up each purchase to the nearest dollar, and invests the difference – your spare change – in a diversified portfolio. With Acorns, you can invest in an S&P 500 ETF for as little as $5 — and if you sign up today with a recurring deposit, Acorns adds a $20 bonus to help you start your investment journey.
Read more: Warren Buffett used 8 solid and repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)
Beyond stocks, real estate has long been another mainstay of wealth building in America.
In fact, Buffett often points to real estate when explaining what a productive, income-generating asset looks like. In 2022, Buffett stated that if you offered him “1% of all the apartment buildings in the country” for $25 billion, he would “write you a check (5).”
Why? Because regardless of what’s happening in the wider economy, people still need a place to live and apartments can consistently produce rent money.
Real estate also offers a built-in hedge against inflation. When inflation increases, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to increase, providing landlords with an income stream that adjusts to inflation.
Of course, you don’t need $25 billion — or even to buy one property outright — to invest in real estate. Crowdfunding platforms like Arrived offer an easier way to gain exposure to this income-generating asset class.
Backed by world-class investors like Jeff Bezos, Arrived allows you to invest in rental housing shares for as little as $100, all without the hassle of mowing the lawn, fixing leaky faucets or managing difficult tenants.
The process is simple: Look for a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you wish to buy and then invest as you begin to receive any positive rental income distribution from your investment.
Another option is First National Realty Partners (FNRP), which allows accredited investors to diversify their portfolio through grocery-anchored commercial properties without taking on the responsibilities of being a landlord.
With a minimum investment of $50,000, investors can own a share of properties leased by national brands such as Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) rentals, accredited investors can invest in these properties without worrying about tenant costs reducing their potential returns.
Simply answer a few questions — including how much you’d like to invest — to start browsing their full list of available properties.
You don’t need a huge investment portfolio to start building wealth. Even your extra money – such as a tax refund – can earn income, rather than sitting idle in a low-yielding account.
However, one challenge is the changing interest rate environment. When interest rates are changing, high-yield savings accounts can feel like a moving target. You may be earning a competitive APY one month, only to have your bank quietly lower it the next day. That’s the trade-off with HYSAs: they’re flexible, but your earnings may not be guaranteed.
With the Fed cutting interest rates recently, many savers are already seeing those yields drop. This makes locked-in returns more valuable than ever — and that’s where a certificate of deposit (CD) shines.
With a CD, you lock in a guaranteed rate up front, so your earnings remain stable for a set term, even if rates drop further. It’s predictable, reliable growth, which is something you don’t always get with traditional accounts.
Raisin makes it even easier by giving you access to high-yield, penalty-free CDs from top US banks, all with no fees and minimums as low as $1.
Prefer higher returns? Choose a high yield CD for steady and reliable earnings. Do you want flexibility? A penalty-free CD lets you access your money early without the usual withdrawal fees that come with a typical CD.
Whether you’re saving for something soon or building a cushion for the long term, Raisin gives you a simple way to earn more without worrying that tomorrow’s rate changes will eat into your earnings.
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