Average tax refund is $3,400, an 11% increase from last year: Treasury Dept
The US Treasury building in Washington, DC, US, on Tuesday, June 17, 2025. (Al Drago/Bloomberg via Getty Images)
(WASHINGTON) — Wednesday is Tax Day, the last day of this year’s tax season, and the average refund for filers is up 11% compared to last year’s filing season, according to new Treasury Department data.
The average refund this filing season is “over $3,400,” the Treasury Department data said.
The data, which is as of Tuesday, also showed that “over 53 million filers claimed at least one of President Trump’s signature new tax cuts,” which includes provisions from Trump’s sweeping legislation that was passed last year.
Treasury has also announced that more than 5 million filers have opened so-called Trump Accounts for children who were eligible under the law.
“Treasury and the IRS have worked tirelessly to ensure our tax system works for the people it is meant to serve,” Treasury Secretary Scott Bessent said in a press release on Wednesday. “From the shop floor to the kitchen table, taxpayers are feeling the difference of the largest tax cuts in our nation’s history, and millions of Americans are keeping more of what they earn and seeing their paychecks go further than ever before.”
Over 25 million filers have claimed No Tax on Overtime, with an average deduction of over $3,100, the department’s data noted, while more than 30 million seniors have claimed the Enhanced Deduction for Seniors, with an average deduction of over $7,500.
The data also showed that more than 105 million filers have claimed the permanently doubled standard deduction — the specific dollar amount that reduces the amount of income on which people are taxed.
U.S. Secretary of War Pete Hegseth speaks during a news conference at the Pentagon on March 2, 2026 in Arlington, Virginia. (Photo by Alex Wong/Getty Images)
(NEW YORK) — Defense Secretary Pete Hegseth heads to Capitol Hill Wednesday for what is formally billed as a routine hearing on the Pentagon’s budget request.
But the appearance — the first before Congress for Hegseth since the war in Iran began in February — lands just two days before a 60-day deadline to wind down hostilities.
It also comes amid intensifying questions on the Hill about how quickly the Pentagon is depleting weapons stockpiles, and as lawmakers continue to scrutinize Hegseth’s unusual spate of firings of senior defense officials without a public explanation.
Questions over civilian casualties in the Iran war, as well as whether the U.S. was properly prepared for retaliatory strikes, and broader questions over the strategic rationale for the conflict, are likely to be a key part of committee members on both sides of the aisle questioning of Hegseth, multiple congressional aides explained.
This week marks Hegseth’s first return to Capitol Hill in nearly a year — with testimony Wednesday before the House Armed Services Committee and Thursday on the Senate side — and his first exposure to sustained scrutiny since the war with Iran began. He’ll be joined by Gen. Dan Caine, the chairman of the joint chiefs of staff at both hearings.
While Hegseth has appeared before the press since the conflict began in late February, he has largely limited engagement to reporters viewed as sympathetic to the administration.
At the center of this week’s hearings is the administration’s request for $1.5 trillion in defense spending, the largest amount in the Pentagon’s history and a jump of 50% over current levels, which would mark the largest single-year increase in a generation.
The proposal would triple spending on drones and related technologies to more than $74 billion, while directing over $30 billion toward munitions procurement. But that budget request was developed months ago: not account for spending in the war with Iran.
“The overlap, you’ll see, is the request for munitions, which is something we always need,” Jules Hurst III, acting undersecretary of defense and the Pentagon’s comptroller, told reporters last week. “We always need to increase our magazine depth. But outside of that, there aren’t any operational costs in here from Iran.” Hurst is set to join Hegseth and Caine at the Senate hearing on Thursday.
That means the Pentagon may require additional funding to cover the cost of the vast quantities of munitions being expended as U.S. forces have struck more than 13,000 targets in Iran since February, along with other significant war-related expenses.
Defense experts have long raised concerns about stockpile constraints even before the war with Iran, with some estimates of a potential conflict with China suggesting the United States could exhaust long-range missile inventories within the first few weeks of fighting.
In less than two months of exchanging fire with Iran, the U.S. has used roughly half of certain missiles and other munitions, according to an analysis published last week by the Center for Strategic and International Studies (CSIS).
Retired Col. Mark Cancian, a senior adviser at CSIS and an author of the report, said Operation Epic Fury “does create a window of vulnerability” for a period of as many as four years – the time it would take to replenish stocks.
“The United States has enough munitions to fight this war if it stubs up again,” Cancian said. “But the risk is in a future war with China, where inventory levels are far below where war planners would like them to be.”
Pentagon officials have maintained the U.S. has enough ammo to fight Iran. Though rearming the force with new munitions can take years, with some missiles requiring one to two years to build, reflecting an inherent limit on how many complex munitions the defense industry can produce each year, spurring much of the interest in huge investments in relatively cheap, easier-to-produce drones, which the Pentagon continues to surge into the Middle East.
Hegseth is also likely to face questions on his unprecedented firing or sidelining of two dozen senior military officials, particularly during a time of war, where he recently fired Gen. Randy George, who was the Army’s top officer and John Phelan, the Navy secretary.
Hegseth has also fired numerous lower-profile generals, without explanation, including Maj. Gen. William Green Jr., who was the chief of the Army Chaplain Corps, a collection of clergy from different faiths within the service. He has also blocked the promotion of four colonels to brigadier general, two of whom are women and two are Black, according to two U.S. officials, who both described a secretary of defense intervening in promotions as unprecedented.
Meanwhile, Democrats have failed in their multiple attempts to rein in President Donald Trump’s authority to wage war in Iran without Capitol Hill’s approval.
The 1973 War Powers Resolution gives the president latitude to conduct military strikes for a 60-day window, which closes Friday. The law allows for a one-time 30-day extension for the president to act without the consent of lawmakers, though it is unclear whether Trump intends to do so or whether Republicans will take into account the ceasefire in a way that relieves any deadline pressure.
U.S. Sailors prepare ordnance on the flight deck of Nimitz-class aircraft carrier USS Abraham Lincoln in support of Operation Epic Fury, Mar. 4, 2026. (US Navy)
(WASHINGTON) — Russian officials denied in a phone call with President Donald Trump that they are sharing intelligence on U.S. military assets with Iran, U.S. special envoy Steve Witkoff said Tuesday.
“We can take them at their word,” Witkoff said during an interview with CNBC. “That’s a better question for the intel people, but let’s hope that they’re not sharing.”
Trump spoke with Russian President Vladimir Putin Monday for about an hour.
“Yesterday on the call with the president, the Russians said that they have not been sharing. That’s what they said,” Witkoff said.
White House press secretary Karoline Leavitt told reporters Tuesday that Trump and Witkoff sent a message to Russia that “if that was taking place. It’s not something they would be happy with, and they hope that it is not taking place.”
“As for further details about the discussions between these two leaders, I’ll leave it to the president to divulge any more of that conversation,” Leavitt said.
ABC News reported on Friday that the U.S. believes that Russia has been providing Iran the locations of American troops in the Middle East, including aircraft and ships, according to two people familiar with the intelligence.
An intelligence official confirmed to ABC News the U.S. belief that Russia is providing intelligence to Iran but did not say exactly what type of information was being shared.
The intelligence sharing could enable the Iranians to target specific locations with ballistic missiles and drones, putting U.S. service members at risk.
Trump himself downplayed Russia’s involvement during a news conference Monday in Florida.
“… he wants to be helpful,” Trump said of Putin and his involvement with Iran.
Putin has been a firm supporter of Iran as the conflict has unfolded. Putin congratulated the country’s new Supreme Leader Mojtaba Khamenei and said in a statement that he reaffirmed Russia’s “unwavering support for Tehran and our solidarity with Iranian friends” in a letter put out by the Kremlin.
Trump said that Putin was “very impressed” with Operation Epic Fury.
“We talked about that with President Putin. He was very impressed with what he saw because nobody’s ever seen anything quite like it,” Trump later added in the news conference.
Over the weekend, Trump said any intelligence sharing between Russia and Iran was inconsequential.
“If you take a look at what’s happened to Iran in the last week, if they’re getting information, it’s not helping them much,” Trump told reporters on Air Force One as he flew to Miami.
President Donald Trump speaks to members of the media traveling on Air Force One while heading to Miami on March 7, 2026. President Trump and other members of the government attended the dignified transfer of six soldiers from the 103rd Sustainment Command who were killed in action by an Iranian drone strike on March 1 in Port of Shuaiba, Kuwait, during Operation Epic Fury. (Photo by Roberto Schmidt/Getty Images)
(WASHINGTON) — Ten days into the U.S. war with Iran, Americans are starting to feel the economic fallout as oil and gas prices soar.
Gas prices skyrocketed to a national average of $3.47 on Monday, up nearly 50 cents from last week, according to data from AAA. Plus, oil prices on Monday surpassed $100 a barrel for the first time since Russia’s invasion of Ukraine in 2022 before falling lower later in the day.
President Donald Trump has dismissed the higher cost, telling ABC News Chief White House Correspondent Mary Bruce it’s “a little glitch.”
“I think it’s fine. It’s a little glitch. We had to take this detour,” Trump told ABC’s Bruce in an interview on Sunday before going on to tout the U.S. military campaign against Tehran.
In a social media post on Sunday night, Trump argued: “Short term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay for U.S.A., and World, Safety and Peace.”
Yet the cost of living remains one of the biggest issues heading into the 2026 midterms, where Trump and Republicans are seeking to maintain narrow majorities in Congress.
A poll released by NBC News on Sunday found Trump received his lowest ratings in the poll on his handling of inflation and the cost of living as 36% of registered voters approve and 62% disapprove.
On Iran, the NBC poll found a majority of registered voters (54%) disapproved of Trump’s handling of the matter.
Trump, on the 2024 campaign trail, vowed to bring gas down below $2 a gallon. During the first year of his second term, Trump routinely pointed to the drop in prices at the pump, including in his State of the Union address last month.
“Gasoline, which reached a peak of over $6 a gallon in some states under my predecessor and was, quite honestly, a disaster, is now below $2.30 a gallon in most states, and in some places $1.99 a gallon,” Trump said in his speech on Feb. 24.
Now, gas prices are closing in on $3.50 a gallon and are expected to continue to keep rising the longer the Middle East conflict lasts.
Patrick De Haan, a petroleum analyst at GasBuddy, told ABC News Live that Americans are currently experiencing “sticker shock.”
“Gas stations are seeing their costs go up in real time again today, as oil markets are jumping, and that’s going to be in another round of price increases over the course of this week, prices could jump another 15 to 35 cents a gallon for gasoline over the next three days, as long as nothing changes,” De Haan said. “And it’s going to be worse for the price of diesel, which could jump 35 to 50 cents a gallon, that would put it close to nearly a $5 a gallon national average.”
Some Democrats are seizing on the price jump to criticize Trump and the administration for the handling of the war.
Senate Minority Leader Chuck Schumer, a New York Democrat, has called for President Trump to tap into the Strategic Petroleum Reserve (SPR) to alleviate the financial burden for Americans.
“American families are suffering from higher prices as the effects of Trump’s reckless war become pain at the gas pump and beyond as high gas prices trickle down making everything more expensive,” Schumer said in a statement on Sunday. “They cannot afford to simply wait and hope prices come down. The President has a solution right here at home, and he should use it.”
“Trump promised a Golden Age in America. Meanwhile. Republicans are crashing the economy, gas prices are out of control and the extremists are spending billions dropping bombs in the Middle East. You deserve better,” House Minority Leader Hakeem Jeffries, also a New York Democrat, wrote on X on Monday.
Trump was asked over the weekend if he would use the SPR to bring some relief, but declined to say, instead criticizing former President Joe Biden’s use of the reserve. Biden released oil from the SPR several times over the course of 2022 as prices increased due to Russia’s war on Ukraine.
“I filled it up and he brought it down to the lowest level it’s ever been. We will start at the appropriate time, which is basically a gut instinct, we will start filling up,” Trump told reporters on Air Force One on Saturday.
“Biden used them so that he could get some extra votes in the election,” Trump added.
Analysts previously told ABC News that the SPR is a “valuable resource” for the administration to bring some relief to Americans and assuage market fears, but likely wouldn’t be enough oil in the long term to make up for the 20 million barrels of oil currently being prevented from passing through the Strait of Hormuz every day.
Trump told Fox News’s Brian Kilmeade in an interview on Sunday night that ships holding at the Strait of Hormuz need to “show some guts” and push through the channel.
Several war-risk insurers have canceled their coverage for vessels amid the widening conflict. Trump said the U.S. government was going to provide some risk insurance and guarantees, and if necessary the U.S. Navy would escort tankers through the strait.
Like Trump, several Republicans are contending that higher gas prices will be temporary.
“The prices will come back down as soon as we get out of Iran, as soon as we finish turning them into fish food, which will be pretty soon,” Republican Sen. John Kennedy said on Fox News on Sunday.
How long the Iran war will last remains an open question. President Trump initially estimated four to five weeks for the U.S., though he later said the timeline would be whatever it takes.
On Sunday, Trump told ABC’s Bruce: “I don’t know. I never predict. All I can say is we are ahead of schedule both in terms of lethality and in terms of time.”
GasBuddy’s De Haan told ABC News Live that the longer the conflict lasts, the more time it will take to see oil and gas prices to get back to their previous levels
“Every day the situation continues, it could add another several weeks to the recovery time,” De Haan said.
ABC News’ Isabella Murray, Nicholas Kerr, Soo Youn and Max Zahn contributed to this report.