The IRS recently announced that it was in the process of distributing another batch of stimulus payments worth up to $1,400, the eighth batch of payments so far as called for by the American Rescue Plan. The eighth batch included another 1.1 million payments worth over $2 billion and brings the total number of payments distributed so far to 164 million with a value of roughly $386 billion.

The new batch of payments is the IRS’ smallest lot sent out yet. The first, second, and fourth batches of stimulus payments included roughly 90, 37, and 25 million checks, respectively, while none of the batches, including the seventh, have fallen far short of 2 million. In terms of value, the $2 billion worth of payments in the eighth batch also falls short of the previous low of $3.4 billion. Following the distribution of the most recent batch, the IRS has now sent payments using over 85 percent of the total funds earmarked for use in the third round of direct federal stimulus payments.

There are also some important differences with regards to the intended recipients of the most recent batch compared to the previous seven batches of payments. The eighth batch included over 585,000 payments worth over $1.2 billion to Americans about whom the IRS previously did not have a record on file until they filed a 2020 tax return. The IRS was only able to send them payment after processing their returns.

In addition, the eighth batch included more than 570,000 payments totaling over $1 billion of what the IRS describes as “plus-up” payments. These supplemental payments are intended for those people whose initial eligibility for a third-round stimulus payment was determined by information contained in their 2019 tax returns, but whose 2020 returns indicate a loss of income or change in dependent status that entitles them to more money.

Previous batches of stimulus payments did include both payments made to Americans without a file on record with the IRS prior to their filing 2020 tax returns as well as a number of plus-up payments. The proportionally higher amount of these types of payments included in the eighth batch, however, suggests that the IRS is directing more of its efforts on sending checks to Americans who fall in one of these two categories. This may indicate that most Americans who qualify more generally for third-round stimulus payments have received them and that the distribution of payments may be winding down.

The third round of direct federal stimulus payments has had a major impact on economic recovery in America. These larger payments, combined with greater rates of vaccination and reopening of businesses in many parts of the country, have contributed to higher levels of consumer spending and household income. Recent polling shows that many Americans have a positive opinion about the current round of stimulus payments, and many are calling for the distribution of further payments.

Eli Fuhrman is a contributing writer for the National Interest.

Image: Reuters