The Internal Revenue Service (IRS) announced the rollout of $1,390 stimulus payments for eligible individuals and families, set to begin in late summer 2025. The program is designed to ease economic pressures from rising living costs, particularly for low- and middle-income households.
The announcement comes as U.S. inflation remains at 2.7%, above the Federal Reserve’s 2% target, with sharp increases in food, healthcare, and housing costs since 2020.
Key Details of the Stimulus Checks
The IRS confirmed that the new payments will be tax-free and will not affect eligibility for Social Security, Medicaid, SNAP benefits, veterans’ pensions, or railroad retirement payments. Families are encouraged to use the funds to cover essentials such as rent, groceries, and medical bills.
Eligibility requirements mirror those of previous federal stimulus programs:
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Individuals with annual incomes of $75,000 or less
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Married couples with a combined income of $150,000 or less
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Heads of household with incomes under $112,500
To qualify, applicants must have filed their 2024 federal tax return. Payments will be distributed via direct deposit, paper checks, or prepaid debit cards (EIP) to ensure accessibility, even for households without traditional bank accounts.
Guidance for Recipients
Officials urge eligible Americans to file their 2024 tax returns, update banking and mailing information, and monitor official IRS channels to avoid scams. The agency also dismissed online rumors about $2,000 payments, clarifying that the official relief amount is $1,390.
An IRS spokesperson said on August 15, 2025:“The $1,390 checks are authorized, in progress, and intended to provide immediate support for Americans most in need.”
Trump’s Separate Financial Proposals
In parallel, former President Donald Trump has floated two controversial economic initiatives:
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“DOGE Dividend Plan” – a proposal to redistribute 20% of federal savings directly to citizens, though economists warn it could undermine fiscal efficiency.
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“Tariff Rebate Program” – an idea to provide at least $600 per adult and child through tariff-related refunds, pending congressional approval.
With rising costs straining millions of households, the IRS stimulus program is seen as a timely intervention, though debates continue over whether such one-time payments can address deeper structural challenges. Meanwhile, Trump’s parallel proposals highlight how economic relief measures are becoming central to the 2025 political landscape.