2025 Stimulus Check Update: IRS Distributing Final Payments—Are You Eligible? During the height of the pandemic in 2020 and 2021, stimulus payments played a crucial role in U.S. politics. Both the Trump and Biden administrations distributed stimulus checks to a substantial number of Americans, aiming to support the economy amid widespread shutdowns.
The financial aid proved effective in alleviating a severe recession, although these measures, along with other responses to the pandemic, contributed to the inflationary pressures that characterized the final months of the Biden presidency, which have persisted into the early period of the next Trump administration.
Following the stimulus checks disbursed during Biden’s early presidency, the federal government halted any further payments. Some states launched their own stimulus programs, yet the federal era of stimulus checks appears to have ended—at least until a new economic downturn triggers a shift.
At present, Congress is engaged in discussions regarding which financial package to advance, primarily concentrating on tax modifications and spending reductions; however, stimulus checks are not part of the current agenda of these negotiations.
What’s Happening Now with the 2025 Stimulus Check?
One notable exception has emerged. In December, the IRS disclosed it would be issuing payments to approximately 1 million individuals who did not claim the 2021 Recovery Rebate Credit on their tax returns from that year.
The IRS stated these payments were scheduled to be sent, “in most cases,” by the end of January, with a maximum amount of $1,400 per person. Importantly, individuals who had not filed a 2021 tax return could still submit their returns and qualify for this payment, with the deadline set for April 15 of this year.
Increased Challenges at the IRS
There are indications that the IRS may soon encounter heightened operational difficulties.
During the Biden Administration, the Inflation Reduction Act allocated an additional $80 billion in funding to an agency that has historically faced underfunding and understaffing. A recent report showed that the IRS “collected over $1.1 billion from 1,600 wealthy individuals who had known but unpaid tax debts in the 2024 fiscal year, a sharp increase from just $38 million the previous year.”
Despite this additional funding, Republicans have seized upon the narrative that an “army” of “87,000 new IRS agents” will be hired. This characterization is somewhat misleading, as it originates from an older analysis by the Treasury Department projecting that the IRS could recruit that number over several years—not all would be agents.
Beyond Stimulus Checks: Unfortunate Layoffs
In a surprising development, significant layoffs are looming at the IRS amid the current economic landscape.
The AP reported that the IRS intends to terminate thousands of temporary employees as tax season commences. Furthermore, another source indicated that IRS personnel involved in tax processing are restricted from accepting potential government worker buyouts until after the conclusion of tax season.
Instead of achieving “government efficiency,” it seems that mass layoffs will likely lead to diminished enforcement capabilities, reduced revenue collection, and delayed refunds for taxpayers.
President of the United States Donald Trump speaking with attendees at the 2019 Student Action Summit hosted by Turning Point USA at the Palm Beach County Convention Center in West Palm Beach, Florida. By Gage Skidmore.
Meanwhile, this week, ABC News reported that DOGE is seeking access to the IRS’s Integrated Data Retrieval System, which contains millions of taxpayers’ confidential tax information.
As of the weekend, access to this system had not yet been authorized.
About the Author: Stephen Silver
Stephen Silver is an award-winning journalist, essayist, and film critic, contributing to the Philadelphia Inquirer, the Jewish Telegraphic Agency, Broad Street Review, and Splice Today. A co-founder of the Philadelphia Film Critics Circle, Stephen lives in suburban Philadelphia with his wife and two sons. Over the past decade, he has penned thousands of articles covering politics, technology, and the economy. You can follow him on X (formerly Twitter) at @StephenSilver, and subscribe to his Substack newsletter.
