White House deputy chief of staff James Blair told Semafor on Wednesday that U.S. voters should begin to feel improved financial confidence in early 2026 as the Trump administration works to reverse what he called the "hole" left by the Biden administration.
Speaking with Semafor reporter Shelby Talcott at the Architects of the New Economy event, Blair said the "fundamentals of the economy are good," but acknowledged that affordability remains the primary concern for many Americans.
Administration Outlook and Tax Season Relief
Blair predicted that the 2026 tax filing season will be a turning point when Americans start to see the effects of the GOP's party-line tax law. He said many households would "see a lot of relief" from persistently high prices and argued that "things are going in the right direction," crediting the current administration with rebuilding after inflation rose under the previous administration.
Rebates, Tariffs and Legislative Options
Blair said the White House plans to press Congress to consider legislation that would distribute direct rebate payments to many Americans, funded by the administration's tariff policies — a proposal that has drawn skepticism from some Republicans. He also did not rule out pursuing another reconciliation bill, while suggesting the administration remains open to bipartisan pathways.
"As we turn into the year, we're open to another reconciliation bill... That's really a partisan tool, and there's bipartisan pathways too," Blair said.
Health Care Stance
On health care, Blair said the White House could be willing to negotiate with Democrats, despite the president's refusal to negotiate during the recent government shutdown over rising premiums. He criticized a Senate test vote by Democrats on a three-year extension of enhanced Affordable Care Act credits as a sign they are not serious about a bipartisan solution, adding "They have our phone numbers" and the White House is ready for "meaningful engagement."
Blair did not rule out eventually proposing a White House plan to extend the expiring subsidies, albeit with changes. "We're not interested in managed failure," he said.
Political Context
Blair's comments come amid growing voter frustration about the economy that has weighed on President Donald Trump's approval ratings. Trump addressed voters at a Pennsylvania rally this week — part of a travel-focused effort to respond to economic concerns — where he dismissed affordability complaints as a "hoax."
The administration's timeline frames the 2026 tax season as a moment when policy changes could translate into noticeable financial relief for many households; whether voters perceive that improvement will depend on policy implementation and broader economic conditions.
