BOOST Act of 2025

Bill Number

H.R. 6236

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Taxation

Status

Introduced

Latest Action

2025-11-20: Referred to the House Committee on Ways and Means.

Last Updated

2026-01-13T15:59:46Z

AI-Generated Summary

Purpose

The BOOST Act of 2025 aims to create a universal monthly payment program for working-age adults to boost their take-home pay and improve financial stability. It establishes direct cash assistance funded by a new tax on higher incomes, targeting economic support without means-testing eligibility beyond basic residency and age requirements.

Key Provisions

• Universal Adult Assistance Program:
• Establishes the Office of Universal Adult Assistance within the Social Security Administration (SSA), led by a Deputy Commissioner appointed by the SSA Commissioner.
• Defines "qualifying adults" as U.S. residents who are either U.S. citizens/nationals or "qualified aliens" (a term from immigration law referring to lawful permanent residents and certain other non-citizens eligible for federal benefits), aged 19 to 67 (as of the last day of the month).
• Provides a $250 monthly payment to each qualifying adult starting January 1, 2026, for those with an approved application.
• Payments are adjusted annually for inflation using the cost-of-living adjustment from the tax code (starting from 2026), rounded down to the nearest dollar.
• Requires an application including name, date of birth, and Social Security or taxpayer ID number; the office handles eligibility, fraud prevention, outreach (including culturally and linguistically tailored efforts), and annual reporting to Congress on recipients, disbursements, and demographics.
• Applies penalties for fraud similar to those in the Social Security Act.
• Treats payments as non-taxable income and excludes them from calculations for eligibility or amounts in federal, state, or local benefit programs (e.g., they won't reduce food assistance or Medicaid).

• Funding Mechanism: New Supplemental Income Tax:
• Adds a new Chapter 2B to the Internal Revenue Code, imposing a 2.5% tax on adjusted gross income (total income after certain deductions but before standard/itemized deductions) exceeding an exemption amount.
• Exemption: $60,000 for joint filers or $30,000 for singles/other filers, adjusted annually for inflation (rounded down to the nearest $100) starting in 2027.
• No credits, deductions, or other tax benefits can offset this tax, and disallowed amounts cannot be carried over to other years.
• Effective for tax years beginning after December 31, 2025; the IRS Secretary can issue regulations for withholding and estimated payments.

Significant Changes to Existing Law

• Creates a new standalone office within the SSA to administer universal payments, expanding the agency's role beyond retirement, disability, and survivor benefits to include broad adult assistance.
• Amends the Internal Revenue Code by inserting a new chapter for a flat supplemental tax on higher earners, separate from the progressive income tax rates in existing Chapter 1; this is the first such broad-based income surtax since historical precedents like World War II-era taxes.
• Introduces an income disregard rule for the payments, ensuring they do not affect means-tested programs like Supplemental Nutrition Assistance Program (SNAP) or Affordable Care Act subsidies, which is broader than typical exclusions in current law.

Potential Impacts

• On Citizens and Residents: Could provide financial relief to approximately 200 million qualifying adults, potentially reducing poverty and increasing disposable income for essentials like housing or childcare; however, it excludes those under 19 (e.g., students, dependents) and over 67 (e.g., many retirees already receiving Social Security).
• On Government Agencies: Burdens the SSA with new administrative duties (e.g., processing applications, anti-fraud measures, reporting), requiring hiring and contracts; the IRS faces expanded tax collection and enforcement for the new surtax, possibly increasing operational costs initially.
• On Economy and International Relations: May stimulate consumer spending among middle- and lower-income groups while raising revenue from higher earners (estimated to fund the program without net deficit increase, though not specified); minimal direct international impact, but could indirectly affect immigration patterns by including certain non-citizens in benefits.
• Broader Effects: Enhances financial security for workers but might discourage savings or work in some cases; tax could reduce after-tax income for high earners, potentially influencing investment or relocation decisions.

Main Stakeholders Affected

• Qualifying Adults (Ages 19-67): Primary beneficiaries, including workers, immigrants, and low-income individuals, who gain monthly cash without income tests.
• U.S. Citizens and Qualified Aliens: Eligible groups, with outreach aimed at underserved communities (e.g., linguistic minorities).
• High-Income Taxpayers: Bear the funding burden via the 2.5% surtax on income over the exemption threshold.
• Government Agencies: SSA (administration and payments) and IRS (tax collection); also affects agencies running means-tested programs like Health and Human Services (due to income disregard).
• Families and Dependents: Indirectly benefits households, as payments support caregivers or multi-generational homes, but excludes minors and seniors.
• Employers and Businesses: Minimal direct impact, though increased worker stability could improve productivity; higher taxes on owner earnings might affect small businesses.

Notable Legal, Constitutional, or Political Implications

• Legal: Relies on Congress's authority under the Spending Clause (Article I, Section 8) to provide for the general welfare; the income disregard protects against unintended cuts in other benefits but could lead to legal challenges if seen as favoring certain groups. Fraud penalties align with existing Social Security rules, strengthening enforcement.
• Constitutional: The universal payment and tax are likely constitutional as exercises of taxing and spending powers, similar to Social Security; however, including non-citizens might raise equal protection debates, though "qualified aliens" are already covered in federal benefits law.
• Political: Represents a step toward universal basic income (UBI) by providing unconditional cash to a broad age group, potentially polarizing along ideological lines—supported by progressives for equity, critiqued by conservatives for cost and work incentives. Annual reporting to Congress ensures oversight, but implementation could spark debates on program expansion or funding sustainability amid fiscal pressures.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Tlaib, Rashida [D-MI-12]

Cosponsors (10)

Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Lee, Summer L. [D-PA-12], Rep. McIver, LaMonica [D-NJ-10], Rep. Omar, Ilhan [D-MN-5], Rep. Thanedar, Shri [D-MI-13], Rep. Carter, Troy A. [D-LA-2], Rep. Watson Coleman, Bonnie [D-NJ-12], Rep. Pressley, Ayanna [D-MA-7], Rep. Mfume, Kweisi [D-MD-7], Rep. Khanna, Ro [D-CA-17]

Recent Actions

• 2025-11-20: Referred to the House Committee on Ways and Means.
• 2025-11-20: Introduced in House
• 2025-11-20: Introduced in House

Bill Versions

• Building Our Opportunities to Survive and Thrive Act of 2025 — issued 2025-11-20 — PDF (9 pages)