The Economy Will Boom in 2026 if Democrats Don’t Shut Down the Government Again: Bessent [WATCH]

Scott Bessent outlined an optimistic economic outlook for the coming years while warning that a government shutdown could derail momentum, arguing that policies under President Donald Trump are already driving growth, investment, and higher incomes for working Americans.

In remarks focused on economic performance and future projections, Bessent said 2025 has laid the groundwork for what he expects to be a strong 2026, provided Democrats do not force another shutdown of the federal government.

He pointed to recent economic indicators, capital investment trends, and tax policy changes as evidence that the economy is expanding beyond a narrow set of sectors.

“So we should think that 2025 was setting the table,” Bessent said.

“2026 is going to be a bountiful year if the Democrats don’t shut down the government because they were unable to stop President Trump.”

Bessent argued that Democrats have repeatedly attempted to block the president’s agenda through multiple avenues before resorting to a shutdown.

He said those efforts culminated in what he described as the longest government shutdown in U.S. history, which he said had measurable economic consequences.

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“They tried to, they tried to stop him in the courts. They tried to stop him in the media. Then they went to the extreme,” Bessent said.

“We had the longest government shutdown in history. Was a hit to GDP. Slowed things. Slowed things down.”

Despite that disruption, Bessent said the economy has remained resilient and is on track to post strong growth figures by the end of the year.

He cited both economic expansion and fiscal improvements as indicators of underlying strength.

“We’re still going to finish the year probably three night, three, three and a half percent GDP growth, which is incredible with a shrinking budget deficit, with a shrinking budget deficit,” he said.

“So we have very good momentum coming into next year.”

According to Bessent, that momentum is being driven by broader participation across the economy, not just gains concentrated in large technology companies. He said market performance reflects strength in multiple sectors.

“The economy is broadening out. You can see it,” Bessent said.

“Other sectors of the stock market, away from big tech, are doing very well.”

Bessent warned that another government shutdown could interrupt that progress, urging Republicans to take decisive action to keep the government open if Democrats attempt to block funding.

He specifically addressed the role of Senate Republicans in such a scenario.

“But if they try to shut down the government, I believe that the Senate Republicans should immediately forego the filibuster, keep the government open and let the economy do its thing,” he said.

He also credited what he referred to as “the one big, beautiful bill” for driving multiple economic changes that are now taking effect.

Bessent said several components of that legislation are contributing directly to increased investment and job creation.

“There are so many parts to that that are kicking in,” he said.

“We’ve had 15% uptake in capital expenditure. Capital expenditure, historically always leads to job growth.”

Bessent highlighted tax-related changes affecting working Americans, saying those measures are expected to result in higher real incomes and significant refunds in the coming months.

He said changes to withholding will play a key role in that process.

“We had the president fulfilled His promises to working Americans, no tax and tips, no tax on Social Security, no tax on overtime and auto deductibility for American made cars,” Bessent said.

“There are going to be substantial refunds to working American households in the first quarter. They will change their withholding. They will get an increase in real incomes.”

Bessent said those developments support his overall optimism about the economy, employment, and investment trends moving forward.

He emphasized that maintaining continuity in government operations is essential to sustaining that progress.

“So I am very optimistic for working Americans, for job growth, for capital formation,” he said, “but we cannot let the Democrats shut down the government.”

WATCH:

.@SecScottBessent: “We had the longest government shutdown in history… we’re still going to finish the year probably 3.5% GDP growth, which is incredible — WITH a shrinking budget deficit. We have very good momentum coming into next year.” pic.twitter.com/uWmorTtF4G

— Rapid Response 47 (@RapidResponse47) December 16, 2025