Kevin Hassett, director of the National Economic Council, told Fox News Sunday that real incomes have jumped $1,300 under the current administration after four years of declines under Biden, and he outlined how new electricity generation and tax changes will help lower costs and boost take-home pay for American families.
On Sunday, Hassett spoke with Shannon Bream about the economic path forward and what taxpayers can expect from 2026 refunds. He framed the discussion around reversing the income losses of the previous four years and delivering tangible affordability improvements. The conversation focused on energy production, tax refunds, and housing affordability as key levers to restore prosperity.
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Hassett emphasized that the economy is already showing improvement after a painful period under the Biden administration. He pointed to concrete rises in real incomes and connected regulatory decisions and energy policy to future price declines. The tone was confident that measured policy moves can restore purchasing power and make daily life more affordable again.
Well, already, what we’ve seen is that after four years, under the Biden administration, where real incomes went down by $3,000 for a typical family. They’ve gone up by $1,300 this year. Now it doesn’t mean that Biden dig, he really dug a big hole, doesn’t mean that we’ve fixed all the problems that Joe Biden created. But we’re making great progress. So, one of the things, I think, that I really liked most about the president’s speeches this week, but I’m biased, I’m an economist, but he put up a lot of charts to show people why they should truly believe that we’re going to make lots of progress on affordability.
So for example, he put up a chart that showed all the electric power generation plants that we’ve approved that will in place over the next year or two. He had a big map of the United States, and showed like, I think it was 1,600 new power plants, which is, that’s how you get electricity prices down. So, you don’t just talk about it, but you deliver, and in the end, what’s going to happen, is people are going to see lower prices, they’re going to see higher real incomes, just like they did last time. And that’s when these numbers are going to turn around. But right now, there is still a lot of recovery from the harm that Biden caused.
Energy policy is front and center because electricity costs touch every household and every business. Increasing generation capacity is a blunt, effective way to ease upward pressure on power prices over time. Hassett and the administration argue that approving more plants will improve reliability and affordability for everything from factories to homes.
Reliable, affordable electricity is the backbone of a modern economy, and higher output from coal, oil, natural gas, and other sources can stabilize prices. Lower energy costs feed directly into lower production and transport costs, which helps keep consumer prices down. That practical, supply-side approach is the core of the administration’s affordability argument.
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Hassett also promised a notable tax-refund season tied to recent legislation that adjusted withholding and credits. He said many Americans will see larger-than-normal refunds when they file, especially workers with overtime, seniors, and those with tip income. The expectation is that immediate relief will come not just from long-term policy changes but from near-term tax adjustments.
Well first of all, there’s so much good news in the new year, because you’re going to see the biggest tax refund season of all time. The Big, Beautiful Bill was passed in July. The IRS didn’t have time to change all the (inaudible) and so now everybody’s going to get huge tax refunds. If they were overtime workers, if they’re seniors, if they, you know, had tip income, all those things are going to be refunded. Those taxes, this year, when they file for their taxes. And then the other thing is that we’ve got lots of great new ideas that we’re going to put before the American people this year to make their lives better. The president mentioned in his economic speech, from over here at the White House, that we’ve got everybody, in the whole Cabinet, working on trying to get housing to be more affordable. We’re going to have a plan, a big plan, to announce sometime soon in the new year, it’s going to be really good news for the American people who feel like it’s just not affordable to buy a home anymore.
Don’t forget that under Joe Biden, the average mortgage payment for the typical middle-class family, who were buying, for the first time, a home, went up by $14,000 a year. $14,000 a year, because of inflation and higher interest rates. And we’ve got a plan that’s going to make that go almost completely in reverse. Already, we’ve reduced that monthly mortgage payment by $3,000.
Tip-income tax relief matters to service workers who often see small take-home pay after taxes and fees. Bigger refunds for people who rely on overtime or cash-based tipping can provide welcome short-term relief. But tax tweaks alone won’t solve structural housing or regulatory obstacles that raise costs across the board.
Housing affordability was raised as a priority, with promises of a cabinet-wide effort and an upcoming plan to expand access to homes. Hassett highlighted how mortgage costs surged under Biden, and he offered reductions already achieved as evidence progress is possible. Conservatives argue that pairing federal measures with local deregulation and zoning reform is the fastest path to more supply and lower home prices.
Local governments hold much of the power to increase housing supply, so federal policies should incentivize states and municipalities to act. Removing unnecessary barriers, updating codes, and freeing up land for development are common-sense steps that align with the administration’s goals. The political stakes are high: elections often hinge on whether voters feel their wallets are improving.
The coming year is framed as a make-or-break moment where policy wins must translate into visible benefits for families. Voters will watch income trends, energy bills, tax seasons, and housing costs to decide whether the promised turnaround arrives. For Republicans focused on economic growth, this is about proving that tangible, market-friendly moves can restore opportunity and ease everyday burdens.
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