$30 Billion in Emergency Rental Assistance Spent in February

San Francisco, California- July 2018: Facade of apartment buildings and store fronts by a street in San Francisco.
raksyBH / Getty Images

The U.S. Department of the Treasury said about $30 billion in Emergency Rental Assistance (ERA) payments were sent out in February and that most of the remaining funds will be deployed by the middle of the year.

See: As Rent Prices Rise, There Are Resources That Can Help Mitigate Costs
Find: New Treasury Data Shows Over 80% of Emergency Rental Assistance Delivered to Lowest-Income Households

In an announcement on Wednesday, the agency said state and local ERA grantees have made more than 4.7 million payments to households as part of the program, which was launched two years ago during the beginning of the COVID-19 pandemic. With the “vast majority” of remaining funds due to be deployed by mid-2022, the Treasury Department will share its reallocation process for ERA2 with state and local grantees. ERA2 is the program’s expansion under the American Rescue Plan.

The agency said its approach to reallocating ERA2 funds “is designed to ensure as many low-income renters as possible have access to this assistance during the pandemic.”

As GOBankingRates previously reported, more than $45 billion in rental assistance money was included in stimulus packages passed by Congress in December 2020 and March 2021, making it the largest program ever to specifically target people in danger of eviction.

After a slow start in which many states were late getting the funds distributed, payments have been sent out at a much faster rate so far in 2022, leaving the funds depleted in some states. Treasury officials are calling on state and local governments to broaden their programs to help tenants who are still struggling.

Make Your Money Work for You

“In just one year, the Emergency Rental Assistance program built a national infrastructure for eviction prevention that never existed before and has helped keep eviction rates well below historic averages throughout the pandemic,” Deputy Secretary Adewale Adeyemo said in a press release. “As these emergency funds run out, now is the time for state and local governments to leverage this infrastructure to provide services like right-to-counsel programs and housing counselors that will help families avoid economic scarring long after COVID-19 is in the rear-view mirror.”

An analysis from Princeton University’s Eviction Lab published earlier this month found that millions of renters avoided the threat of eviction in 2021 due to federal rental assistance programs. The analysis also found that low-income and majority-Black neighborhoods that typically see a disproportionate share of eviction cases had the largest absolute reduction in filings.

As part of Wednesday’s announcement, the Treasury Department unveiled key elements of its reallocation approach for state and local grantees. Given the limited amount of ERA1 funds remaining for reallocation, the agency said it “anticipates only one more round of ERA1 reallocation from state, local and territorial grantees’ initial allocations, which will occur later this spring and be based on expenditure and obligation data through March 31, 2022.

Make Your Money Work for You

See: Why Doesn’t Every Grocery Store Accept SNAP EBT Food Stamps?
Social Security: You Can Stop Working and Delay Your Benefits To Earn More Later

The agency said it further intends “to recapture a portion of unobligated funds from grantees, leaving grantees with the amount of ERA1 funds they have spent in their strongest quarter to date. This reallocation is intended to ensure that ERA1 funds will be spent through by the statutory deadline of September 2022 while continuing to direct excess funds to grantees with the greatest need.”

More From GOBankingRates

About the Author

Vance Cariaga is a London-based writer, editor and journalist who previously held staff positions at Investor’s Business Daily, The Charlotte Business Journal and The Charlotte Observer. His work also appeared in Charlotte Magazine, Street & Smith’s Sports Business Journal and Business North Carolina magazine. He holds a B.A. in English from Appalachian State University and studied journalism at the University of South Carolina. His reporting earned awards from the North Carolina Press Association, the Green Eyeshade Awards and AlterNet. In addition to journalism, he has worked in banking, accounting and restaurant management. A native of North Carolina who also writes fiction, Vance’s short story, “Saint Christopher,” placed second in the 2019 Writer’s Digest Short Short Story Competition. Two of his short stories appear in With One Eye on the Cows, an anthology published by Ad Hoc Fiction in 2019. His debut novel, Voodoo Hideaway, was published in 2021 by Atmosphere Press.

Best Bank Accounts of July 2022

Untitled design (1)
Close popup The GBR Closer icon

Sending you timely financial stories that you can bank on.

Sign up for our daily newsletter for the latest financial news and trending topics.

Loading...
Please enter an email.
Please enter a valid email address.
There was an unknown error. Please try again later.

For our full Privacy Policy, click here.