Research from three federal agencies maintains Economic Impact Payments (EIP) were quickly and effectively received by underserved communities and Americans most in need.
The U.S. Department of the Treasury, the Census Bureau and the Internal Revenue Service (IRS) recently published a working paper examining the demographic breakdown of EIP recipients to explore potential disparities in the receipt of the payments by race and ethnicity.
The study focused on the first round of payments made in 2020 via the Coronavirus Aid, Relief, and Economic Security Act of 2020 (CARES Act). The payments were designed to blunt the pandemic’s economic impact.
Deputy Secretary of the Treasury Wally Adeyemo said the research reflects work by multiple agencies to understand how government policies and programs have impacted different communities.
“This research will be instrumental as we develop, design, and implement fair and equitable policy responses to potential future economic shocks,” Adeyemo said.
Per the research, over 160 million payments were disbursed, with the analysis determining 55 percent of people who received an EIP did so in the first week the payments were made while 95 percent received their EIP within six weeks.
Additionally, according to the compiling agencies, approximately 60 percent of multiracial, Hispanic, or Native Hawaiian or Pacific Islander recipients received a payment in the first week, compared to approximately 55 percent of White, American Indian and Alaska Native, Black or Asian recipients.
White and Asian recipients were the most likely to receive their payments in the first six weeks, according to the findings. More than 90 percent of payments were received in the first six weeks for every racial/ethnic subgroup the authors examined.
Overall, 92 percent of potentially eligible individuals received an EIP.