No Stimulus Checks But Tax Relief For Many in the Big Beautiful Bill

In July 2025, Congress passed the One Big Beautiful Bill Act, a sweeping piece of tax reform legislation championed by the Trump administration. While the bill has been celebrated for bringing tax relief, it has also created some confusion among taxpayers, particularly regarding the absence of direct stimulus payments.

Unlike previous relief measures such as those in the CARES Act of 2020 or the American Rescue Plan of 2021, the Big Beautiful Bill (BBB) does not include universal stimulus checks for the general population.

This has been confirmed by the White House and coverage by USA Today, which clarified that the bill focuses more on progressive tax relief rather than direct monetary handouts.

During the COVID-19 pandemic, stimulus checks ranged from $1,200 to $3,200, providing significant direct aid to millions of Americans.

However, the BBB opts for a different approach by integrating tax deductions and credits aimed at supporting specific groups rather than issuing broad-based payments. Key features include:
 

• Tax Breaks: The bill includes tax exemptions for tips up to $25,000 and overtime up to $160,000 for individuals earning below $150,000. Additionally, there are enhanced deductions for families with children and for interests paid on car loans.
• New Child Tax Credit: A revised child tax credit offers $2,500 per child, refundable up to $1,600, although it's designed primarily for those with sufficient earnings to benefit from such a credit.
• Increased Standard Deductions: The standard deduction has been raised to $15,750 for singles and $31,500 for joint filers, with adjustments for inflation.
• Car Loan Interest Deduction: Taxpayers can now deduct up to $2,500 of the interest paid on car loans.

These changes are estimated to provide between $500 and $1,500 in annual savings for the average taxpayer, according to projections from the Tax Foundation. Though these are not direct deposits like the stimulus checks, they could still lead to significant financial relief for many families.

Additionally, the government introduced the "Trump Accounts" program under the BBB, which isn't a traditional stimulus but signifies a push towards long-term savings. This initiative involves a one-time deposit of $1,000 into savings accounts for children born between 2025 and 2028, aiming to foster an early start on financial growth and savings.

It's important to note that this benefit is specific to new parents and doesn't extend to existing adults or families without newborns in that timeframe.

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