Warren, Markey Say Unbanked Filers Need Stimulus Checks Faster

April 13, 2020

The Honorable Steven T. Mnuchin
Secretary of the Treasury
U.S. Department of the Treasury
1500 Pennsylvania Avenue, N.W.
Washington, DC 20220

Dear Secretary Mnuchin,

We write regarding potentially long wait times for individuals to receive their stimulus payments under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. According to news reports, taxpayers who do not provide direct deposit information to the Internal Revenue Service (IRS) may not receive their payments until August or even September.¹ We encourage you to do everything in your power to address this problem immediately and ensure that taxpayers quickly receive their stimulus checks, regardless of banking status.

Section 2201 of the CARES Act provides up to $1,200 per individual and $500 per child in the form of a stimulus rebate through the IRS. These direct payments, while modest, are intended to be a lifeline for millions of American families, especially for the more than 10 million people who have filed for unemployment over the last two weeks.

The IRS took a positive step by allowing taxpayers to update their direct deposit information online, which could speed stimulus rebates to many Americans. But this will not help unbanked populations in the United States — those lacking a bank account capable of direct deposit. According to news reports, those who cannot receive a direct deposit may have to wait several weeks for their stimulus rebate because the IRS will not even begin issuing paper checks until the week of May 4. Even if the IRS were able to meet its stated goal of issuing 5 million paper checks per week, that would mean an unacceptably long 20-week delay on payments for some taxpayers.²

Furthermore, any delay in disbursing paper checks is likely to compound problems with future stimulus action that Congress may soon need to take. Though the CARES Act was signed into law less than two weeks ago, the worsening pandemic and economic fallout have made it apparent that American families are likely to require more support from the federal government. We strongly believe that these payments alone are not sufficient, and Congress will need to provide additional economic relief to help struggling Americans get by. But right now we must ensure Americans get access to these promised payments as quickly as possible.

Thank you for your attention to this critical matter. We look forward to ensuring that all Americans receive their stimulus payments without delay.

Sincerely,

Edward J. Markey
United States Senator

Elizabeth Warren
United States Senator