BOOST Act Creates $250 Monthly Cash Payment, Funded by New 2.5% Tax on Income Above $30K

The proposed Building Our Opportunities to Survive and Thrive Act (BOOST Act of 2025) is essentially a two-part deal: it creates a new universal cash assistance program and pays for it with a brand-new tax on higher earners. Starting in January 2026, qualifying adults would receive $250 every month. The catch? To fund this, the bill imposes a separate 2.5% federal income tax on Adjusted Gross Income (AGI) above $30,000 for single filers and $60,000 for joint filers, beginning in 2026.

The $250 Monthly Boost: Who Gets It and How It Works

Section 2 of the bill establishes the Universal Adult Assistance Program, designed to put $250 per month into the pockets of nearly all adults. To qualify, you must be a U.S. citizen, national, or a "qualified alien" (which refers to specific legal residency statuses defined in existing law) and be between the ages of 19 and 67. The payment amount is set to be adjusted annually for inflation starting in 2027, so it shouldn't lose value over time.

This $250 isn't just extra cash; the bill makes sure it’s protected. Crucially, the payments are not counted as taxable income and, even better, they don’t count as income or resources when determining eligibility for any federal program, or any state or local program that uses federal funds. This means if you rely on benefits like SNAP or Medicaid, receiving this $250 shouldn't kick you off those programs. The Social Security Administration (SSA) will run this new program through a new Office of Universal Adult Assistance, which will be responsible for everything from determining eligibility to preventing fraud.

The Funding Mechanism: A New Tax Floor

To pay for this massive new program, Section 3 imposes a new 2.5% tax on your AGI above certain thresholds. If you file as single, the tax kicks in on income over $30,000. If you’re married filing jointly, it starts over $60,000. These thresholds will also be adjusted for inflation starting in 2027, which is a smart move that keeps the tax focused on the same income brackets over time.

However, this new tax comes with a major, non-negotiable twist: it cannot be reduced by any other tax credit, deduction, exclusion, refund, or rebate. This is the part that could hit middle-class earners hard. Think about it: if you’re a family making $70,000 and you rely on the standard deduction and child tax credits to significantly reduce your tax bill, those credits won't help you with this new 2.5% tax. It acts like a mandatory minimum tax on your income above the $60,000 threshold, regardless of your family size or other deductions you’re currently taking.

For example, if a joint-filing couple has an AGI of $80,000, they would pay 2.5% on the $20,000 difference above the $60,000 exemption—that’s an extra $500 in taxes, which they cannot offset with anything else. For many working families, this new, non-deductible tax liability could easily outweigh the $3,000 annual benefit ($250 x 12) they receive from the assistance program, depending on their total income and filing status.