Stimulus Update: Will Future Stimulus Payments Come Faster Than Your Last Ones?

When Americans were provided with COVID-19 stimulus checks under both the Biden and Trump administrations, the Internal Revenue Service (IRS) was tasked with sending out the payments to those who were eligible.

The IRS took weeks to start distributing payments into people's bank accounts and months to finish the task. Meanwhile, many people were left without funds they needed to cover the bills after the economy was shut down.

The good news is, if the federal government issues more stimulus checks in the future, it is possible they might be paid out faster than the prior three checks were. That's because the IRS has recently received an influx of funds and is currently planning an overhaul that will improve customer service.

Will the IRS be faster at providing more stimulus payments?

The IRS has faced substantial budget cuts over the past decade, leaving the agency facing staffing shortages and struggling to keep up with changes in technology. In fact, the agency currently has around 20% fewer full-time workers than it did in 2010, even as the population has grown and tax rules have become more complicated since that time.

The IRS has been unable to hire new workers or to modernize its processes because Republicans have repeatedly reduced its funding, justifying the cuts by accusing the agency of targeting Conservatives and going after everyday Americans.

This is changing, though. The Inflation Reduction Act, which was passed by the Biden administration, allocated $80 billion to the IRS. This is a historically large allocation of funds to the agency, and a good portion of this money is being devoted to hiring new workers, increasing customer service, and helping the IRS transform into a "digital first" agency.

As this transformation gets underway and new people come on board, the IRS will likely be able to act more quickly in handling tasks like sending out additional stimulus payments going forward.

Will the federal government authorize more stimulus checks?

Although the IRS will soon be better equipped to send out money to Americans, no additional stimulus payment has been authorized by the federal government at this time.

It is unlikely that more payments will be provided in the coming months unless the conditions of the pandemic worsen, especially as control of the government is now divided and House Republicans would be unlikely to authorize another direct payment.

Still, stimulus checks were viewed as essential during the heart of the pandemic and have been distributed during recessions before, so it is possible another payment will come at some point in the future.

If and when that occurs, the IRS may just be able to send out that much-needed cash to Americans in a much more timely manner thanks to the agency's additional funds and goals of improved customer service. And that's great news for Americans who will need help in a time of trouble.