Stimulus checks are a tool that has been used by authorities in the United States for years. These types of payments are intended to help residents cover their most urgent expenses. Although citizens have received tax rebates and credits from federal authorities every year, no stimulus checks or one-time payments have been issued since the COVID-19 pandemic, as these are state initiatives. The eligibility requirements for this type of payment require that the applicant have a low income or be part of an economically vulnerable group. With the aim of controlling and reducing inflation, the State of New York has offered this type of payment to residents this year.
The amount of this government benefit will depend on annual family income and whether the application is made individually or as a couple. One way to receive a one-time payment of $1,000 is through the creation of Trump accounts that are part of the One Big Beautiful Bill. This tool encourages children to save money and gives parents and caregivers an initial payment of $1,000 in an account to which they can add contributions and from which they cannot withdraw money until the child turns 18. Another one-time payment made this year took place in Illinois, where, starting October 1, applications opened to receive assistance to pay energy costs through the Low-Income Home Energy Assistance Program (LIHEAP).
Once-off payments and stimulus checks
These terms refer to one-time direct financial assistance payments from the government to citizens, which are granted to stimulate the economy and help households during economic crises, such as the COVID-19 pandemic. Stimulus payments are also known as “economic impact payments” and are a method of immediate support provided to encourage spending. The eligibility for these types of payments is directly based on economic capacity. Those with low incomes or who are part of a more economically vulnerable group will be eligible. It should be noted that, as it is a one-time payment, it is not intended as long-term assistance, but rather as immediate help to cover the most urgent payments and expenses for citizens.
Recent payments
Motivated by the economic difficulties caused by inflation, the State of New York has offered this type of payment to residents this year. The maximum amount received can be up to $400, which is intended to mitigate the effects of inflation on households. Payments began in September of this year and will continue throughout the month.
Eligibility requirements
These requirements will depend not only on annual family income, but also on whether the application is submitted as a couple or individually. Eligible cases are:
- Married couple filing jointly with an annual family income of less than $150,000: the only one eligible to receive the full payment of $400.
- A married couple earning between $150,000 and $300,000.
- Single filer with an income less than $150,000.
“Trump Accounts”
The approval of Donald Trump’s One Big Beautiful Bill also brings with it “Trump accounts.” This single payment method consists of creating an account with a fund of $1,000 for children born between January 2025 and December 2028. In addition to this initial, one-time payment from the federal government, caregivers will be able to contribute up to $5,000 to the accounts.
According to spokesperson Mike Johnson, “Trump accounts are all about setting the next generation up for success.” The aim of this measure is to encourage parents to start saving for their children’s future as early as possible. The money deposited in these accounts cannot be touched until the child turns 18, at which point it will function as a traditional IRA. These accounts are available to all new caregivers in every state in the country.
One-time payments in Illinois
With the arrival of winter comes a rise in utility bills. That is why Illinois has launched the Low-Income Home Energy Assistance Program (LIHEAP), administered by the federal government. Through this program, residents can apply for assistance to help them pay their upcoming utility bills. The application period opened on October 1 and will be open to all applicants without exception starting November 1. As with any other financial assistance application, eligibility will depend on household income limits.