America's Biggest Stimulus Payment Ever Came With A Massive Price Tag

Government-funded stimulus packages have been a facet of the U.S. economy for the better part of a century, even if that hasn't always been the name for them. Dating back to the Great Depression, the federal government has implemented wide-scale efforts to stir up economic activity, in an effort to help survive a recession, on more than one occasion. Most recently, in early 2020, the U.S. — and entire world — experienced unprecedented economic disruptions due to the COVID-19 pandemic. Roughly 9.4 million people lost their jobs in 2020, per the Bureau of Labor Statistics, leading the federal government to take drastic measures to help offset the financial difficulties of both individuals and businesses alike.

The U.S. government spent roughly $4.7 trillion on pandemic relief, with around $1.8 trillion going directly to individuals and families. A sizable chunk of this expenditure came in the form of three stimulus payments, also known as Economic Impact Payments (EIP), issued directly to American households. In April 2020, the Coronavirus Aid, Relief, and Economic Security Act saw 168.2 million payments, each up to $1,200, issued to adults making less than $75,000 per year, alongside another $500 per child. Then, in December of that same year, another roughly 152.4 million payments, this time up to $600 each, followed by another 175.8 million $1,400 payments in March 2021. According to the Government Accountability Office (GAO), these EIPs alone cost the federal government roughly $837.5 billion. These stimulus payments far exceed that of any similar relief the federal government has sent out in the 21st century.

COVID stimulus checks cost 7.73 times more than the stimulus relief extended during the Great Recession of 2008 — and the payments didn't stop there. Despite the amounts being significant, it proved more difficult than you might think to get stimulus payments into the hands of those that needed them. In fact, there were many qualifying communities that did not receive the initial rounds of payments, leading the government to issue a number of recovery tax rebates and payments well into 2024 to try and make up for it. However, some individuals still missed these opportunities, leaving roughly $2.4 billion in unclaimed stimulus payments still without a home as recently as early 2025. Plus, as of 2026, certain Americans were still eligible for additional IRS penalty refunds as a result of COVID-related complications.

While the government has found plenty of ways to waste money over the years, pandemic EIPs were not one of them. In fact, it's clear that citizens needed these funds, with the Census Bureau reporting that 80% of Americans used some of their stimulus checks for food, while 77.9% said at least part of the money went toward housing costs and utilities. With that in mind, the relief these EIPs provided to consumers was likely worth the price tag.