The ‘One Big Beautiful Bill Act‘ (BBB), passed by both houses of the US Congress in July 2025, is being seen as a major reform in the US tax system. This bill was initiated under the Trump administration, which includes new promises and measures to provide economic relief to the public. However, many Americans have the illusion about this new package that perhaps they will again get direct payments like the ‘stimulus check’ received during the COVID-19 pandemic. But the truth is different.
While some people are looking at this bill from the perspective of future savings, most people are getting disappointed in the hope of immediate relief, as it does not include any kind of direct financial assistance, i.e., direct stimulus payment. This article will explain in detail what is in this bill, what is not, and what the common American citizen should expect from it.
Stimulus payment expected but no direct assistance
The stimulus checks given under the CARES Act in 2020 and the American Rescue Plan in 2021 provided immediate relief to millions of Americans struggling with the pandemic. Based on those experiences, now when the BBB was passed in 2025, a large number of people expected that they too would once again get money directly in their bank accounts.
But according to official reports from the White House and USA Today, there is no such provision in the ‘One Big Beautiful Bill.’ This bill focuses entirely on tax credits, tax exemptions and rebates. Its purpose is to provide economic relief to taxpayers in the long term, not immediate cash assistance.
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So what benefits will be available in this bill?
Although there are no direct stimulus payments in the BBB, through this, many types of tax exemptions have been given to special classes, which will be helpful in easing their financial burden in the long run. Let’s take a look at these benefits one by one:
1. Tax exemption on tips and overtime:
- If you earn less than $150,000 a year, you can avail a tax exemption of up to $25,000 on tips and up to $160,000 on overtime income. This exemption is a boon, especially for those who work in the hospitality, service or long-hours industries.
2. New child tax credit:
- The new bill will provide a child tax credit of $2,500, of which $1,600 will be refundable. This is especially beneficial for low-income parents who are worried about child care costs.
3. Increase in standard deduction:
- The standard deduction has been increased to $15,750 for single taxpayers and $31,500 for joint filers. This amount will be adjusted every year according to inflation, which will increase the scope of tax savings.
4. Deduction on car loan interest:
- If you have taken a loan for a car, now you can avail a tax deduction of up to $2,500 of the interest paid on it. This will act as a relief, especially for middle-class families.
The Tax Foundation believes that with this bill, an average taxpayer will be able to save from $500 to $1,500 annually in taxes, which will strengthen his financial stability.
What is the Trump Accounts Program?
A special initiative has been included under this bill, which is called the Trump Accounts Program. This scheme is especially for newborns and their parents. Under this, for children born between 2025 and 2028, the government will deposit an amount of $1,000 in their name in a savings account.
The purpose of this scheme is not to provide immediate relief but long-term financial security. Only those families will get the benefit of this in whose house a child is born between these years. This amount can gradually be useful for their future expenses, such as education or health.
Although this plan is not like a direct stimulus check, it is an effort that is a step towards laying the foundation of economic stability for the next generation.
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Not a stimulus payment, but tax reform is necessary.
It should be clear to the Americans that BBB is not like a relief package brought during a pandemic-induced crisis. It is a systematic tax reform that will work towards making the tax structure more simple, inclusive and beneficial in the coming years.
This may be better for those citizens who regularly file taxes, are raising a family, are raising children or come from the middle-income group. However, for those who were expecting immediate relief or cash payment, this bill may be disappointing.
But for those who think long term, this bill can prove to be a boost to future plans.
Conclusion: Is the ‘Big Beautiful Bill’ really beautiful?
The One Big Beautiful Bill Act of 2025 is a structural change to the US tax system. While it does not provide direct money, it does bring the possibility of lasting relief. Provisions such as the exemption on tips and overtime, tax credit for children, car loan deduction, and increased standard deduction will definitely bring relief to those Americans who are hardworking and manage their income wisely.
Yes, it is true that it does not have direct economic assistance like the CARES Act or Rescue Plan, but it has definitely made a solid start for future generations—which will definitely bring relief tomorrow, if not today, through plans.
FAQs
Q. Does the One Big Beautiful Bill Act include stimulus checks?
A. No, the BBB Act does not include any direct stimulus payments like the ones from the CARES Act or American Rescue Plan.
Q. What kind of tax relief does the BBB Act offer?
A. It provides tax exemptions on tips and overtime, a new child tax credit, increased standard deductions, and deductions on car loan interest.
Q. Who qualifies for the new child tax credit?
A. Parents with lower incomes may qualify for a $2,500 child tax credit, with $1,600 of it being refundable.
Q. What is the Trump Accounts Program?
A. It’s a savings initiative where $1,000 is deposited for newborns born between 2025 and 2028, to promote long-term savings.
Q. When will the changes from the BBB Act take effect?
A. Most provisions of the BBB Act are expected to impact tax filings starting in 2026.
