President Donald Trump is implementing a significant fiscal strategy through increased tax refunds, estimated at $65 billion more in 2026 compared to 2025, mainly benefiting higher-income households. Bank of America analysts project the total consumer stimulus from the One Big Beautiful Bill Act (OBBBA) will be around $135 to $140 billion, with most refunds issued between February and April. The refunds aim to boost economic confidence ahead of the midterms, but experts warn the effects may be short-lived as high inflation, rising costs for essentials, and a cold winter could quickly diminish the perceived benefits. The White House emphasizes that the refunds are part of broader policies, including tax cuts, supply-side reforms, and investments in families, designed to foster growth and job creation. However, the distribution of benefits is skewed toward wealthier households, with lower-income families less likely to receive significant refunds. Economists warn that the stimulus may deepen the existing 'K-shaped' economic divide, as higher-income groups tend to save rather than spend, limiting the overall impact on the broader economy. Despite the targeted relief, many lower-income households face ongoing affordability challenges, and the temporary boost from refunds may not significantly alter long-term economic perceptions. Meanwhile, Americans preparing to file their 2025 tax returns should be aware of new deductions, changes in tax law, and the IRS's reduced staffing, which could complicate the filing process. The legislation aims to reduce individual taxes by $129 billion in 2025, with an average tax cut of $611 per taxpayer, but benefits vary widely depending on income and employment type. Overall, while the tax refunds are substantial, their ability to influence voter sentiment and address persistent economic issues remains uncertain.