Pandemic Relief: The Emergency Rental Assistance Program

Pandemic Relief: The Emergency Rental
October 21, 2021January 10, 2023
Assistance Program
Grant A. Driessen
In response to concerns about the economic effects of the COVID-19 pandemic on renters and In response to concerns about the economic effects of the COVID-19 pandemic on renters and
Specialist in Public Finance Specialist in Public Finance
their landlords, Congress created a $25 billion Emergency Rental Assistance (ERA) program in their landlords, Congress created a $25 billion Emergency Rental Assistance (ERA) program in

the Consolidated Appropriations Act, 2021 (Division N of P.L. 116-260). A second round of the Consolidated Appropriations Act, 2021 (Division N of P.L. 116-260). A second round of
Maggie McCarty
ERA funding—$21.55 billion—was included in Section 3201 of the American Rescue Plan Act ERA funding—$21.55 billion—was included in Section 3201 of the American Rescue Plan Act
Specialist in Housing Policy Specialist in Housing Policy
of 2021 (P.L. 117-2). of 2021 (P.L. 117-2).

The ERA program is funded through the Coronavirus Relief Fund (CRF) that was established by
Libby Perl
the Coronavirus Aid, Relief, and Economic Security Act (CARES Act, P.L. 116-136) and
Specialist in Housing Policy
implemented by the Department of the Treasury. The ERA program directed resourcesThroughout this report, when there are relevant distinctions between the two laws, the program is accordingly referred to as either ERA-1 or ERA-2. Libby Perl ERA is administered by the Department of the Treasury. Funding under both ERA-1 and ERA-2 Specialist in Housing Policy was provided to states, to states,

localities, and localities, and tribesterritories via a per capita formula allocation. The via a per capita formula allocation. The second round of ERA funding
included a set-aside of $2.5 billion for “high need” grantees and did not include a set-aside for
For a copy of the full report,
please call 7-5700 or visit
tribesformula for allocating ERA-1 funding guaranteed states a minimum initial allocation of $200 million. ERA-1 also included a set-aside for tribes. The formula for allocating ERA-2 funding guaranteed For a copy of the full report, to states a $152 million minimum initial allocation. ERA-2 did not include a tribal set-aside, but please call 7-5700 or visit did include a set-aside of $2.5 billion for “high need” grantees. .
www.crs.gov. www.crs.gov.
P.L. 116-260 established various parameters for how the P.L. 116-260 established various parameters for how the first round of ERA funding (ERA-1)ERA-1 funding can be used. Among other can be used. Among other
requirements, states and localities must use the bulk of funds for financial assistance, requirements, states and localities must use the bulk of funds for financial assistance, which is defined to include rental defined to include rental
assistance and utility assistance (including payment of arrearagesassistance and utility assistance (including payment of arrearages as well as prospective rental payments). Remaining funds may be used for housing stability ). Remaining funds may be used for housing stability
services (case management and other supports to help families retain their housing) and administrative expenses. Renters are services (case management and other supports to help families retain their housing) and administrative expenses. Renters are
eligible for assistance if they are low-income, experiencing financial hardshipeligible for assistance if they are low-income, experiencing financial hardship due to the pandemic, and at risk of homelessness or housing , and at risk of homelessness or housing
insecurity. Grantees insecurity. Grantees arewere directed to prioritize very low-income renters for assistance. The law also established obligation and directed to prioritize very low-income renters for assistance. The law also established obligation and
expenditure deadlines and imposed various reporting requirements on the Treasury Secretary. expenditure deadlines and imposed various reporting requirements on the Treasury Secretary.
These parameters were changed somewhat for These parameters were changed somewhat for the second round of ERA funding under P.L. 117ERA-2. Specifically, the amount -2. Specifically, the amount
that can be spent on administrative expenses was increasedthat can be spent on administrative expenses was increased for ERA-2, and grantees may be able to use , and grantees may be able to use ERA-2 funds that funds that remainremained unobligated as unobligated as
of October 1, 2022, for a broader range of affordable housing and eviction prevention activities. of October 1, 2022, for a broader range of affordable housing and eviction prevention activities. Further, eligibility for assistance was broadened to include households experiencing financial hardship during the pandemic. P.L. 117-2 also extended the P.L. 117-2 also extended the
availability of availability of first round ERA ERA-1 funding from December 31, 2021, to September 30, 2022funding from December 31, 2021, to September 30, 2022.
; ERA-2 funding was made available through September 30, 2025. The laws governing ERA-1 and ERA-2 directed Treasury to recapture and reallocate unused ERA funding from slow spending grantees to fast spending grantees. Within the statutory requirements—and any additional guidance established by Treasury—states and localities have Within the statutory requirements—and any additional guidance established by Treasury—states and localities have
had flexibility in designing their flexibility in designing their rental assistanceERA programs. The ability of states and localities to structure their programs programs. The ability of states and localities to structure their programs
differently means that the experience of similarly situated renters seeking assistance differently means that the experience of similarly situated renters seeking assistance will likely varyvaried geographically. geographically.
Similarly, there Similarly, there may behas been geographic variability in the degree to which existing resources—both ERA and other funds— geographic variability in the degree to which existing resources—both ERA and other funds—are
have been adequate to meet demand for rental assistance and the speed at which grantees adequate to meet demand for rental assistance and the speed at which grantees arehave been able to disburse assistance. One concern since the ERA program initially launched has been the relatively slow rate of expenditure. Slow expenditure may be attributable to grantees struggling to launch programs (particularly if they had no prior experience administering emergency rental assistance); having difficulty attracting or processing eligible renters; receiving too much funding relative to demand (particularly in the case of some smaller states); and other factors. As of the cover date of this report, Treasury had completed four rounds of ERA-1 recapture and reallocation (as well as one round of tribal recapture and reallocation) and one round of ERA-2 recapture and reallocation, redirecting more than $3.1 billion in ERA-1 funding and more than $500 million in ERA-2 funding among grantees with higher expenditure rates. Of the amount redistributed, about 58% of ERA-1 funds were redistributed within the same state, with the remaining funds redistributed across states, often from small states (those that received the minimum allocation) to larger states. Grantees have reported some basic information to Treasury on how they have spent ERA funding and who they have served. Data from the first quarter of 2021 through the second quarter of 2022 showed that grantees had provided ERA to 5.35 million unique households, the majority of which had incomes at or below 30% of local area median income. Roughly 70% of those served received rental assistance and about 64% received assistance with rental arrears. About 14% received utility assistance and 27% received assistance with utility arrears. The U.S. Department of Housing and Urban Development is funding a study to better understand the range of impacts the ERA program has had on program participants and their communities able to disburse assistance.
Treasury data on spending of ERA-1 funds showed that approximately $7.5 billion of the $25 billion in ERA-1 funding
allocated to states and localities had been spent on household rent, utilities, and arrears during the first eight months of the
program (through the end of August 2021). The rate of expenditure of ERA-1 funds has caused some to raise concerns about
the effectiveness of the program in preventing evictions as eviction moratoriums end, and in addressing the backlog of rent
and utility debt (estimates of which have ranged from more than $20 billion to more than $50 billion). Grantees with excess
unobligated ERA-1 funds are subject to recapture and reallocation of those funds beginning in fall 2021. .
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Contents
Introduction ..................................................................................................................................... 1
Background: Rental Assistance During the COVID-19 Pandemic ................................................. 1
Initial State and Local Allocations ............................................................................................................. 3 2
P.L. 116-260 (ERA-1) ............................................................................................................... 32
P.L. 117-2 (ERA-2) ................................................................................................................... 43 Funding Availability .................................................................................................................. 6 ERA-1 Recapture and Reallocation Process ....................................................................... 6 ERA-2 Recapture and Reallocation Process ....................................................................... 7
ERA Program Parameters ................................................................................................................ 78
Eligible Use of Funds ................................................................................................................ 8
Financial Assistance ............................................................................................................ 89
Administrative Costs and Housing Stability Services ........................................................ 9 10
Individual Eligibility and Prioritization .................................................................................. 10
Eligibility ........................................................................................................................... 11 10
Prioritization ...................................................................................................................... 11 10
Documentation ................................................................................................................... 11
Funding Availability and ReallocationReporting Requirements ..................................................................................... 11
ERA-1 Recapture and Reallocation Process .......................................... 12 Program Performance and Future Considerations ................................................. 11
Reporting Requirements ........................ 12 Funding Distribution and Reallocation ................................................................................... 12 Program Design and Administration 12
Outstanding Questions ....................................................................................... 16 Households Served ........................... 13
How are local programs structured?........................................................................................ 13
Will rental assistance prevent loss of housing? 18 Future of Emergency Rental Assistance ............................................................................... 14
Will state and local governments use other federal funding for rental assistance and
eviction prevention?... 19 Tables Table 1. Emergency Rental Assistance Initial Allocations in P.L. 116-260 (ERA-1) and P.L. 117-2 (ERA-2) ............................................................................................................. 16

Tables
Table 1. Emergency Rental Assistance Allocations in P.L. 116-260 (ERA-1) and P.L.
117-2 (ERA-2, ERA-2 High Need) ............................................. 4 Table 2. ERA-1 Reallocation ......................................................................................................... 13 Table 3. ERA-1 Reallocation ......................................................................................................... 16 Table 4. Data on Households Served by the ERA Program .......................................................... 5

18 Contacts
Author Information ........................................................................................................................ 1720

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Pandemic Relief: The Emergency Rental Assistance Program

Introduction
The Emergency Rental Assistance (ERA) program was created to help cover the unmet rent and The Emergency Rental Assistance (ERA) program was created to help cover the unmet rent and
utility expenses of low-income households affected by the economic consequences of the utility expenses of low-income households affected by the economic consequences of the
COVID-19 pandemic. COVID-19 pandemic. It hasThe program received two rounds of funding. received two rounds of funding.
The Consolidated Appropriations Act, 2021 (P.L. 116-260) initially funded the ERA program with The Consolidated Appropriations Act, 2021 (P.L. 116-260) initially funded the ERA program with
an appropriation of $25 billion.1 The ERA program was funded through the Coronavirus Relief an appropriation of $25 billion.1 The ERA program was funded through the Coronavirus Relief
Fund (CRF), a program created as part of the Coronavirus Aid, Relief, and Economic Security Fund (CRF), a program created as part of the Coronavirus Aid, Relief, and Economic Security
(CARES) Act (P.L. 116-136), and administered by the Department of the Treasury, to assist state, (CARES) Act (P.L. 116-136), and administered by the Department of the Treasury, to assist state,
local, territorial, and tribal governments.2 While the CARES Act CRF appropriation could be local, territorial, and tribal governments.2 While the CARES Act CRF appropriation could be
used for multiple purposes, the ERA appropriation in P.L. 116-260 was directed only to rent and used for multiple purposes, the ERA appropriation in P.L. 116-260 was directed only to rent and
utility assistance and related housing stability services. A second appropriationutility assistance and related housing stability services. A second appropriation for ERA—of $21.550 —of $21.550
billion—billion—for ERA was included in Section 3201 of the American Rescue Plan Act of 2021 (P.L. was included in Section 3201 of the American Rescue Plan Act of 2021 (P.L.
117-2). 117-2).
Throughout this report, when there are relevant distinctions between the two laws, the program is accordingly referred to as ERA-1 or ERA-2. This report briefly describes the need for rental assistance during the COVID-19 pandemic, This report briefly describes the need for rental assistance during the COVID-19 pandemic,
provides information about the allocation of ERA funds, describes the parameters of the ERA provides information about the allocation of ERA funds, describes the parameters of the ERA
program, and program, and discusses outstanding questions about the program and renter needsconcludes with an analysis of how the program is being implemented, including the reallocation of funds to-date, a review of some of the administrative considerations in the program, and information about who the program has served. .
Background: Rental Assistance During the
COVID-19 Pandemic
Even before the onset of the COVID-19 pandemic, low-income renters struggled with housing Even before the onset of the COVID-19 pandemic, low-income renters struggled with housing
affordability. The Joint Center on Housing Studies reported that in 2018, nearly half (48%) of all affordability. The Joint Center on Housing Studies reported that in 2018, nearly half (48%) of all
renters were cost burdened (i.e., paying more than 30% of their income in rent), with higher renters were cost burdened (i.e., paying more than 30% of their income in rent), with higher
numbers for lower-income (80%), Black (55%), and Hispanic (53%) renters.3numbers for lower-income (80%), Black (55%), and Hispanic (53%) renters.3 The pandemic The pandemic may
have made renterand its economic effects made renters’ housing arrangements even more housing arrangements even more precarious. Efforts to assist renters included eviction moratoriums at the state and federal levels, including a nationwide moratorium on evictions for nonpayment of rent issued by the Centers for Disease Control and Prevention (CDC) that was in effect from September 4, 2020, until August 3, 2021.4 However, moratoriums did not prevent arrearages from accumulating, and renters still faced risks of eviction, particularly after moratoriums ended. Prior to enactment of ERA, some states and localities used federal funds appropriated as part of the CARES Act, including funds distributed through CRF and the Community Development Block Grant (CDBG), to operate rental assistance programs designed to prevent evictions.5 precarious. Renters have been more likely to
lose employment income than homeowners.4 This is particularly the case for Black and Hispanic
renters, who are also estimated to face the greatest threat of eviction during the pandemic.5
Millions of renters report being behind on their rent, lacking confidence in their ability to pay
next month’s rent, and facing a likelihood of leaving their housing due to eviction.6

1 See Division N, Title V, Section 501 of P.L. 116-260. 1 See Division N, Title V, Section 501 of P.L. 116-260.
2 For more information about CRF in the CARES Act, see CRS Report 2 For more information about CRF in the CARES Act, see CRS Report R46298R46990, , General State and Local Fiscal
Assistance and COVID-19: Background and AvailableEligible Purposes, Allocations, and Use Data. .
3 Joint Center for Housing Studies, 3 Joint Center for Housing Studies, America’s Rental Housing 2020, January 2020, pp. 26-29, , January 2020, pp. 26-29,
https://www.jchs.harvard.edu/sites/default/files/reports/files/Harvard_JCHS_Americas_Rental_Housing_2020.pdf. https://www.jchs.harvard.edu/sites/default/files/reports/files/Harvard_JCHS_Americas_Rental_Housing_2020.pdf.
4 4 Alexander Hermann and Sharon Cornelissen, Using the Census Bureau’s Household Pulse Survey to Assess the
Economic Impacts of COVID-19 on America’s Households, Harvard Joint Center for Housing Studies, July 2, 2020,
https://www.jchs.harvard.edu/blog/using-the-census-bureaus-household-pulse-survey-to-assess-the-economic-impacts-
of-covid-19-on-americas-households/.
5 Whitney Airgood-Obrycki, “The Impact of COVID-19 on Renters and Rental Markets,” Harvard Joint Center for
Housing Studies virtual event, September 4, 2020, https://www.jchs.harvard.edu/calendar/impact-covid-19-renters-and-
rental-markets. See also, Sophia Wedeen, Black and Hispanic Renters Face Greatest Threat of Eviction in Pandemic,
Harvard Joint Center for Housing Studies, January 11, 2021, https://www.jchs.harvard.edu/blog/black-and-hispanic-
renters-face-greatest-threat-eviction-pandemic.
6 The Census Bureau has surveyed samples of households on their pandemic-related housing situations every two
weeks since the beginning of the pandemic, starting on April 23, 2020. See Census Bureau Pulse survey data, available
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Efforts to assist renters include eviction moratoriums at the state and federal levels. A national
eviction moratorium issued by the Centers for Disease Control and Prevention (CDC) took effect
on September 4, 2020, and was extended several times before it expired on August 1, 2021.
Following the expiration of the moratorium, CDC issued a new eviction moratorium, on August
3, 2021, applicable in areas with substantial and high rates of community spread of COVID-19.
However, on August 26, 2021, the Supreme Court blocked enforcement of the new eviction
moratorium, allowing evictions to proceed in areas that do not have their own state or local
eviction moratoriums.7
While the moratoriums may prevent eviction for nonpayment of rent, they do not prevent
arrearages from accumulating, which can result in eviction when moratoriums lift. These missed
rent payments also affect landlords. This may particularly result in hardship for smaller landlords,
who are estimated to have lower incomes and make up larger shares of Black and Hispanic
landlords.8 At the end of January 2021, it was estimated that total rental arrears were $57 billion;9
more recent estimates suggest the total may be closer to $20 billion.10
At the outset of the COVID-19 pandemic, some states and localities used federal funds
appropriated as part of the CARES Act, including funds distributed through CRF, to operate
rental assistance programs.11 Further, households may have drawn on CARES Act stimulus
checks, expanded unemployment benefits, and borrowing to cover rent. However, some of these
sources of funds became depleted as the pandemic continued.12
For more information, see CRS Insight IN11673, The CDC’s Federal Eviction Moratorium. 5 See examples from the National Conference of State Legislatures, which tracks the ways in which states used their CRF allocations: https://www.ncsl.org/research/fiscal-policy/state-actions-on-coronavirus-relief-funds.aspx. The Congressional Research Service 1 Pandemic Relief: The Emergency Rental Assistance Program Organizations representing both tenants and landlords advocated for additional federal funds to Organizations representing both tenants and landlords advocated for additional federal funds to
help tenants pay help tenants pay their rent.13rental arrearages that had accumulated during eviction moratoriums.6 Legislation was introduced in the 116th Congress that would have Legislation was introduced in the 116th Congress that would have
provided as much as $100 billion to help tenants pay rent.provided as much as $100 billion to help tenants pay rent.147 Ultimately, Congress appropriated Ultimately, Congress appropriated
nearly $47 billion for emergency rent and nearly $47 billion for emergency rent and utility assistance through the ERA program. Initial State and Local Allocations P.L. 116-260 (ERA-1) P.L. 116-260 provided a total of $25.000 billion in ERA supportutility assistance through the ERA program.

at https://www.census.gov/programs-surveys/household-pulse-survey/data.html.
7 For more information, see CRS Insight IN11673, The CDC’s Federal Eviction Moratorium.
8 Small landlords in the analysis are those owning 2-4 unit properties; Jung Hyun Choi and Caitlin Young, Owners and
Renters of 6.2 Million Units in Small Buildings Are Particularly Vulnerable during the Pandemic, The Urban Institute,
August 10, 2020, https://www.urban.org/urban-wire/owners-and-renters-62-million-units-small-buildings-are-
particularly-vulnerable-during-pandemic.
9 Jim Parrott and Mark M. Zandi, Averting an Eviction Crisis, Urban Institute, January 25, 2021,
https://www.urban.org/sites/default/files/publication/103532/averting-an-eviction-crisis.pdf (hereinafter, “Averting an
Eviction Crisis”).
10 Sarah Treuhaft, Rent Debt in America: Stabilizing Renters Is Key to Equitable Recovery, National Equity Atlas,
August 10, 2021, https://nationalequityatlas.org/rent-debt-in-america (hereinafter, “Rent Debt in America”).
11 See examples from the National Conference of State Legislatures, which tracks the ways in which states are using
their CRF allocations: https://www.ncsl.org/research/fiscal-policy/state-actions-on-coronavirus-relief-funds.aspx.
12 Averting an Eviction Crisis.
13 See, for example, National Housing Conference, “31 housing organizations tell administration and Congress to
immediately return to negotiations,” press release, August 21, 2020, https://nhc.org/press-release/31-housing-
organizations-tell-administration-and-congress-to-immediately-return-to-negotiations/.
14 See the Heroes Act (H.R. 6800) and the Emergency Rental Assistance and Rental Market Stabilization Act (H.R.
6820, S. 3685).
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State and Local Allocations
P.L. 116-260 (ERA-1)
P.L. 116-260 provided a total of $25.000 billion in ERA support to governments in states,
territories, and tribal areas. Payments (denoted as ERA-1 payments here and in Treasury . Payments (denoted as ERA-1 payments here and in Treasury
documentation) documentation) arewere distributed across these jurisdictions as follows: distributed across these jurisdictions as follows:
 $23.785 billion  $23.785 billion iswas allocated allocated for governments into eligible local governments, the 50 states the 50 states, and the and the District of District of
Columbia based on their populations (as projected by the U.S. Census Bureau for Columbia based on their populations (as projected by the U.S. Census Bureau for
July 2020),July 2020),158 with no state receiving less than $0.200 billion; with no state receiving less than $0.200 billion;9
 $0.800 billion  $0.800 billion iswas set aside for governments in tribal areas, with individual set aside for governments in tribal areas, with individual
government allocations distributed in proportion to relative payments made under government allocations distributed in proportion to relative payments made under
the Native American Housing Block Program in FY2020;the Native American Housing Block Program in FY2020;1610
 $0.400 billion  $0.400 billion iswas allocated to the territories of Puerto Rico, the U.S. Virgin allocated to the territories of Puerto Rico, the U.S. Virgin
Islands, Guam, the Northern Mariana Islands, and American Samoa, with $0.325 Islands, Guam, the Northern Mariana Islands, and American Samoa, with $0.325
billion provided to Puerto Rico and $0.075 billion distributed to the remaining billion provided to Puerto Rico and $0.075 billion distributed to the remaining
territories based on their relative population share; and territories based on their relative population share; and
 $0.015 billion  $0.015 billion iswas set aside to cover federal administrative costs related to set aside to cover federal administrative costs related to program
program implementation. implementation.
ERA-1 payments ERA-1 payments arewere generally provided to state (or territorial) governments generally provided to state (or territorial) governments, though state
governments may transfer any funds received to local governments so long as funds are used for
eligible purposes. Local governments serving a population of at least 200,000 (as measured by the . Local governments serving a population of at least 200,000 (as measured by the
U.S. Census Bureau in 2019),U.S. Census Bureau in 2019),17 may11 could elect to receive elect to receive assistance directlytheir own direct allocations from Treasury. from Treasury. Any
Direct payments made payments made directly to localities to localities reduce thereduced Treasury’s initial allocation allocation made to theto their state government (keeping state government (keeping
the total amount provided across each state constant), and the total amount provided across each state constant), and arewere the product of (1) the state or the product of (1) the state or
territorial allocation amount, (2) the percentage of the state or territorial population attributable to
the local government, and (3) 45%.
In many cases, populations are served by more than one local government that is eligible for
direct assistance from the CRF (e.g., a city with a population of 300,000 located in a county with
200,000 other people and thus having a county population of 500,000). Treasury clarified that in
such cases, all overlapping governments are eligible for assistance.18 However, direct assistance
payments to larger localities is calculated using only their unique population, or will be reduced
by any amounts also attributable to smaller localities receiving assistance (i.e., in the above

15territorial National Low Income Housing Coalition tracked the way in which CARES Act funding more broadly was used for rental assistance: https://bit.ly/RA-database. 6 See, for example, National Housing Conference, “31 housing organizations tell administration and Congress to immediately return to negotiations,” press release, August 21, 2020, https://nhc.org/press-release/31-housing-organizations-tell-administration-and-congress-to-immediately-return-to-negotiations/. 7 See the Heroes Act (H.R. 6800) and the Emergency Rental Assistance and Rental Market Stabilization Act (H.R. 6820, S. 3685). 8 U.S. Census Bureau, “Vintage 2020 Population Estimates for the United States and States,” December 2020, U.S. Census Bureau, “Vintage 2020 Population Estimates for the United States and States,” December 2020,
https://www.census.gov/programs-surveys/popest/technical-documentation/research/evaluation-estimates.html. https://www.census.gov/programs-surveys/popest/technical-documentation/research/evaluation-estimates.html.
Allocations are determined by total state populations, including nonrenters; for recent estimates of state renter Allocations are determined by total state populations, including nonrenters; for recent estimates of state renter
populations, see U.S. Census Bureau, “American Community Survey 2015-2019 5-Year Data Release,” December populations, see U.S. Census Bureau, “American Community Survey 2015-2019 5-Year Data Release,” December
2020, https://www.census.gov/newsroom/press-kits/2020/acs-5-year.html. 2020, https://www.census.gov/newsroom/press-kits/2020/acs-5-year.html.
169 The District of Columbia was treated as a state for both the ERA-1 and ERA-2 allocations. 10 For more on the Native American Housing Block Grant program, see CRS Report R43307, For more on the Native American Housing Block Grant program, see CRS Report R43307, The Native American
Housing Assistance and Self-Determination Act of 1996 (NAHASDA): Background and Funding, by Katie Jones.
17. 11 U.S. Census Bureau, “Subcounty Resident Population Estimates: April 1, 2010 to July 1, 2019,” May 2020, U.S. Census Bureau, “Subcounty Resident Population Estimates: April 1, 2010 to July 1, 2019,” May 2020,
https://www.census.gov/data/tables/time-series/demo/popest/2010s-total-cities-and-towns.html. https://www.census.gov/data/tables/time-series/demo/popest/2010s-total-cities-and-towns.html.
18 U.S. Treasury, “Emergency Rental Assistance Program: Data and Methodology for State, Local Government, and
Territory Allocations,” January 2021, https://home.treasury.gov/system/files/136/Emergency-Rental-Assistance-Data-
and-Methodology-1-11-21.pdf.
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Congressional Research Service 2 Pandemic Relief: The Emergency Rental Assistance Program allocation amount, (2) the percentage of the state or territorial population attributable to the local government, and (3) 45%. In many cases, populations were served by more than one local government eligible for direct assistance from ERA (e.g., a city with a population of 300,000 located in a county with 200,000 people living in other localities in the county, and thus having a county population of 500,000). Treasury clarified that in such cases, overlapping governments were eligible for assistance.12 However, direct assistance payments to larger localities was calculated using only their unique population, or was reduced by any amounts also attributable to smaller localities receiving assistance (i.e., in the above example, the county government would only use a population of 200,000 for its direct payment example, the county government would only use a population of 200,000 for its direct payment
calculation). calculation).
P.L. 117-2 (ERA-2)
P.L. 117-2 appropriated P.L. 117-2 appropriated a total ofan additional $21.550 billion in ERA support to $21.550 billion in ERA support to governments in states and
territorieslocal, state, and territorial governments. Unlike P.L. 116-260, P.L. 117-2 did not include a separate allocation of funds for . Unlike P.L. 116-260, P.L. 117-2 did not include a separate allocation of funds for tribal governmentstribal
governments, and the payments were classified as mandatory spending rather than discretionary
spending. Payments (denoted as ERA-2 payments here and in Treasury documentation) . Payments (denoted as ERA-2 payments here and in Treasury documentation) are
were distributed across distributed across theseeligible jurisdictions as follows: jurisdictions as follows:
 $18.712 billion  $18.712 billion iswas allocated allocated for governments into eligible local governments, the 50 states the 50 states, and the and the District of District of
Columbia based on their populations (as projected by the U.S. Census Bureau for Columbia based on their populations (as projected by the U.S. Census Bureau for
July 2020),July 2020),1913 with no state receiving less than $0.152 billion; with no state receiving less than $0.152 billion;
 $0.305 billion  $0.305 billion iswas allocated to the territories of Puerto Rico, the U.S. Virgin allocated to the territories of Puerto Rico, the U.S. Virgin
Islands, Guam, the Northern Mariana Islands, and American Samoa, with $0.240 Islands, Guam, the Northern Mariana Islands, and American Samoa, with $0.240
billion provided to Puerto Rico and $0.065 billion distributed to the remaining billion provided to Puerto Rico and $0.065 billion distributed to the remaining
territories based on their relative population share; territories based on their relative population share;
 $2.500 billion  $2.500 billion iswas set aside for high-need grantees, to be distributed by the set aside for high-need grantees, to be distributed by the
Treasury Secretary using statistics on high-need housing, rental market costs, and Treasury Secretary using statistics on high-need housing, rental market costs, and
unemployment (ERA-2 High Need); and unemployment (ERA-2 High Need); and
 $0.033 billion  $0.033 billion iswas set aside to cover federal administrative costs related to set aside to cover federal administrative costs related to program
program implementation. implementation.
Direct local allocation Direct local allocation identificationseligibility, calculations, and division of payments across overlapping , calculations, and division of payments across overlapping
governments in governments in P.L. 117-2 areERA-2 were consistent with the methodology from consistent with the methodology from P.L. 116-260ERA-1. However, P.L. . However, P.L.
117-2 directed that ERA-2 funds be staggered in their distribution. Specifically, Treasury was 117-2 directed that ERA-2 funds be staggered in their distribution. Specifically, Treasury was
directed to distribute no less than the first 40% of ERA-2 funds within 60 days of enactment, with directed to distribute no less than the first 40% of ERA-2 funds within 60 days of enactment, with
the remainder to be distributed after grantees the remainder to be distributed after grantees expendexpended 75% of their initial ERA-2 allocation. 75% of their initial ERA-2 allocation.20
Table 1 shows ERA-1 and ERA-2 allocations and estimates broken out by state and territory, and
government level.21

1914 12 U.S. Department of the Treasury, “Emergency Rental Assistance Program: Data and Methodology for State, Local Government, and Territory Allocations,” January 2021, https://home.treasury.gov/system/files/136/Emergency-Rental-Assistance-Data-and-Methodology-1-11-21.pdf. 13 U.S. Census Bureau, “Vintage 2020 Population Estimates for the United States and States,” December 2020, U.S. Census Bureau, “Vintage 2020 Population Estimates for the United States and States,” December 2020,
https://www.census.gov/programs-surveys/popest/technical-documentation/research/evaluation-estimates.html. https://www.census.gov/programs-surveys/popest/technical-documentation/research/evaluation-estimates.html.
Allocations are determined by total state populations, including nonrenters; for recent estimates of state renter Allocations are determined by total state populations, including nonrenters; for recent estimates of state renter
populations, see U.S. Census Bureau, “American Community Survey 2015-2019 5-Year Data Release,” December populations, see U.S. Census Bureau, “American Community Survey 2015-2019 5-Year Data Release,” December
2020, https://www.census.gov/newsroom/press-kits/2020/acs-5-year.html. 2020, https://www.census.gov/newsroom/press-kits/2020/acs-5-year.html.
2014 See P.L. 117-2, §3201(c) available at https://www.congress.gov/bill/117th-congress/house-bill/1319/ See P.L. 117-2, §3201(c) available at https://www.congress.gov/bill/117th-congress/house-bill/1319/
text#H61B6162AB8EC496ABB590ADA8F6898FF. text#H61B6162AB8EC496ABB590ADA8F6898FF.
21 U.S. Treasury, “Emergency Rental Assistance Program,” May 2021, https://home.treasury.gov/policy-issues/
coronavirus/assistance-for-state-local-and-tribal-governments/emergency-rental-assistance-program.
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Table 1 shows ERA-1 and ERA-2 initial allocations broken out by state and territory, and government level.15 Table 1. Emergency Rental Assistance Initial Allocations in P.L. 116-260 (ERA-1) and
P.L. 117-2 (ERA-2, ERA-2 High Need)
(All allocations in millions of dollars) (All allocations in millions of dollars)

Allocations to State Governments
Allocations to Local Governments

ERA-2
ERA-2
State or
High
High
Grand
Governments Governments State or Territory
ERA-1
ERA-2
Need
ERA-1
ERA-2
Need
Grand Total
Alabama Alabama
263 263
208
21224
63 63
50
10
61665 615
Alaska Alaska
165 165
125 125
0
35 35
27 27
0
352 352
American American
Samoa 10 10
9 9
0 0
0 0
0
0
19
Samoa19
Arizona Arizona
290 290
229 229
0
203 203
160
39
920199 921
Arkansas Arkansas
174 174
137 137
0
27 27
22 22
0
360 360
California California
1,498 1,498
1, 1,185
26210
1,113 1,113
881
4951,376
5,197 5,197
Colorado Colorado
248 248
196 196
0
137
109
29137 138
719 719
Connecticut Connecticut
236 236
187
35222
0 0
0 0
0
457458
Delaware Delaware
200 200
152
096
0 0
0
056
352 352
District of District of
200 200
152 152
0 0
0 0
0
0
352 352
Columbia Columbia
Florida Florida
872
689
51871 740
570 570
451
124575
2, 2,757756
Georgia Georgia
552 552
437
42479
158 158
125
34159
1,348 1,348
Guam Guam
33 33
29 29
0 0
0 0
0
0
62 62
Hawaii Hawaii
125 125
95 95
0
75
57
1475 71
366 366
Idaho Idaho
176 176
134
0125
24 24
18
027
352 352
Il inois Il inois
566 566
448
32474
268 268
212
70288
1, 1,597596
Indiana Indiana
372 372
294
32324
76 76
60
11
84574 846
Iowa Iowa
195 195
154
0149
15 15
12
017
376 376
Kansas Kansas
169 169
129
0126
31 31
23
0
35326 352
Kentucky Kentucky
264 264
209
24233
33 33
26
632
562 562
Louisiana Louisiana
249 249
197
0192
59 59
47
1870
570 570
Maine Maine
200 200
152126
0 0
0
0
026
352 352
Maryland Maryland
258 258
204 204
0
143
114
34143 148
754 754
Massachusetts Massachusetts
421 421
333
55353
36 36
29
2083
893 893
Michigan Michigan
623 623
493
25403
38 38
30
45190
1,254 1,254
Minnesota Minnesota
289 289
229 229
0
86 86
68
18
69084 688 Mississippi 187 145 13 13 358 15 U.S. Department of the Treasury, “Emergency Rental Assistance Program,” May 2021, https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/emergency-rental-assistance-program.
Mississippi
187
145
0
13
10
2
358
Missouri
324
256
23
84
67
18
772
Montana
200
152
0
0
0
0
352
Nebraska
159
121
0
41
31
5
357
Nevada
125
99
0
83
66
21
394
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Allocations to State Governments
Allocations to Local Governments

ERA-2
ERA-2 Governments Governments
State or
High
High
Grand
TerritoryTerritory ERA-1 ERA-2
ERA-1
ERA-2
Need
ERA-1
ERA-2
Need
Total
New
179
136
0
21
16
0
352
Hampshire
New Jersey
354
280
0
235
186
86
1,141
New Mexico
161
123
0
39
29
6
358
New York
801
634
39
481
381
258
2,594
North
547
432
57
156
124
14
1,331
Carolina
North
200
152
0
0
0
0
352
Dakota
Northern
10
9
0
0
0
0
19
Mariana
Islands
Ohio
565
447
49
210
167
39
1,476
Oklahoma
210
166
0
54
43
12
485
Oregon
204
162
0
77
61
22
526
Pennsylvania
570
451
49
278
220
43
1,610
Puerto Rico
325
240
0
0
0
0
565
Rhode Island
200
152
0
0
0
0
Grand Total Missouri 324 270 84 94 771 Montana 200 152 0 0 352 Nebraska 159 121 41 36 357 Nevada 125 99 83 87 394 New Hampshire 179 115 21 37 352 New Jersey 354 272 235 260 1,121 New Mexico 161 123 39 36 359 New York 801 673 481 639 2,594 North Carolina 547 490 156 138 1,331 North Dakota 200 152 0 0 352 Northern Mariana 10 9 0 0 19 Islands Ohio 565 496 210 205 1,476 Oklahoma 210 166 54 55 485 Oregon 204 156 77 88 525 Pennsylvania 570 500 278 263 1,611 Puerto Rico 325 240 0 0 565 Rhode Island 200 152 0 0 352 South Carolina 272 232 74 73 651 352
South
272
215
31
74
59
0
651
Carolina
South Dakota South Dakota
200 200
152 152
0 0
0 0
0
0
352 352
Tennessee Tennessee
383 383
303
29313
73 73
58
1693
862 862
Texas Texas
1,308 1,308
1, 1,035
66080
639 639
506
133660
3,686 3,686
U.S. Virgin U.S. Virgin
Islands 21 21
18 18
0 0
0 0
0
0
40
Islands40
Utah Utah
150 150
119
0113
65 65
52
664
392 392
Vermont Vermont
200 200
152 152
0 0
0 0
0
0
352 352
Virginia Virginia
525 525
415
43396
45 45
36
15113
1,079 1,079
Washington Washington
322 322
255
24278
188 188
149
41
979190 978
West Virginia West Virginia
200 200
152 152
0 0
0 0
0
0
352 352
Wisconsin Wisconsin
322 322
255
26281
65 65
51
1667
735 735
Wyoming Wyoming
200 200
152 152
0 0
0 0
0
0
352 352
All Tribal All Tribal
800 800
0 0
0 0
0 0
0
0
800 800
Governments Governments
Totals
18,305
14,195
779531
6,680
4,822
1,7216,964
46,502480
Source: U.S. U.S. Department of the Treasury, “Emergency Rental Assistance Program,” May 2021, https://home.treasury.gov/policy-Treasury, “Emergency Rental Assistance Program,” May 2021, https://home.treasury.gov/policy-
issues/cares/emergency-rental-assistance-programissues/cares/emergency-rental-assistance-program.
; and U.S. Treasury, “ERA2 Congressional Research Service Congressional Research Service

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Pandemic Relief: The Emergency Rental Assistance Program

Allocations for Eligible Entities,” May 2021, https://home.treasury.gov/policy-issues/cares/emergency-rental-assistance-program. Notes: Recipients may choose to Recipients may choose to transfersubgrant funds to governments within their jurisdiction, but are not obligated funds to governments within their jurisdiction, but are not obligated
to do so. Sums may not equal totals due to rounding. to do so. Sums may not equal totals due to rounding.

State and Local Distribution Information
Treasury and stakeholder groups have assembled various resources to provide information on state and local ERA
programs.
For detailed state and local al ocations under ERA-1 and ERA-2, Treasury provides information on its website:

ERA-1: https://home.treasury.gov/system/files/136/Emergency-Rental-Assistance-Payments-to-States-and-
Eligible-Units-of-Local-Government.pdf

ERA-2:ERA-2 payments include those categorized as high-need payments. Funding Availability P.L. 116-260 made ERA-1 funds available to grantees through December 31, 2021; the ERA-1 deadline was subsequently extended to September 30, 2022, by P.L. 117-2. Beginning September 30, 2021, the law directed the Treasury Secretary to recapture any “excess” unobligated ERA-1 funds (as determined by the Secretary) and to reallocate them to grantees that had obligated at least 65% of their ERA-1 funds for eligible purposes. Grantees receiving reallocated ERA-1 funds were eligible for an up to 90-day extension of the funding availability deadline, to December 29, 2022. P.L. 117-2 made ERA-2 funds available to grantees until September 30, 2025. However, beginning March 31, 2022, the law directed the Treasury Secretary to reallocate undisbursed ERA-2 funds16 only to grantees that have obligated 50% or more of their total allocated ERA-2 funds. These reallocated funds can only be used for financial assistance, not housing stability services or administrative costs. The law permits grantees that have obligated at least 75% of their ERA-2 funds for eligible purposes as of October 1, 2022, to obligate remaining unobligated funds for a broader range of other affordable rental housing and eviction prevention purposes for very low-income families. ERA-1 Recapture and Reallocation Process The law that created ERA-1 left the Treasury Secretary discretion regarding how to structure the recapture and reallocation process. The process developed by the agency was described in guidance, initially published in October 2021, and subsequently revised several times.17 Under that guidance, grantees were subject to recapture of unobligated funding if they had “excess” ERA-1 funding. Treasury periodically determined whether grantees had “excess funds” by evaluating their spending against expenditure ratios, which increased over time. Generally, the expenditure ratio is calculated as the share of a grantee’s allocation (excluding 10% for administrative costs) spent on assistance to eligible households. For grantees with spending below the expenditure ratio, the amount subject to recapture was the difference between the grantee’s expenditures and the applicable ratio at the time of evaluation.18 16 As noted earlier, P.L. 117-2 directed Treasury to disburse ERA-2 funding allocations in phases, based on grantee spending rates. Specifically, Treasury was directed to distribute no less than the first 40% of ERA-2 funds within 60 days of enactment, with the remainder to be distributed after grantees expend 75% of their initial ERA-2 allocation. It is these undisbursed ERA-2 funds held by Treasury that are subject to potential reallocation. 17 U.S. Department of the Treasury, “Emergency Rental Assistance Under the Consolidated Appropriations Act, 2021 Reallocation Guidance,” October 4, 2021, https://home.treasury.gov/system/files/136/ERA1-ReallocationSummary-October-2021.pdf; “Emergency Rental Assistance Under the Consolidated Appropriations Act, 2021 Reallocation Guidance,” updated March 30, 2022, https://home.treasury.gov/system/files/136/Updated-ERA1-Reallocation-Guidance%203-30-%202022.pdf; “Emergency Rental Assistance Under the Consolidated Appropriations Act, 2021, Addendum to Reallocation Guidance for Tribal Governments,” June 1, 2022, https://home.treasury.gov/system/files/ https://home.treasury.gov/system/files/136/ERA_Tribal_Guidance_Addendum.pdf; and “Emergency Rental Assistance Under the Consolidated Appropriations Act, 2021 Reallocation Guidance,” updated September 6, 2022, https://home.treasury.gov/system/files/136/UpdatedERA1ReallocationGuidanceSep6.pdf. 18 For example, see “Emergency Rental Assistance Under the Consolidated Appropriations Act, 2021 Reallocation Congressional Research Service 6 Pandemic Relief: The Emergency Rental Assistance Program Treasury gave grantees the ability to avoid or lessen recapture if they submitted and complied with a Program Improvement Plan. If a grantee failed to submit required reports under the Program Improvement Plan, the grantee could also be determined to have excess funds subject to recapture in an amount equal to 10% of the grantee’s allocation. In order to prevent recapture, Treasury also allowed grantees to request that a portion of their ERA-1 funds be voluntarily reallocated to another designated grantee (either other localities within the same state or the state grantee) that had obligated at least 65% of its funds. Once Treasury made a recapture, it started a process to reallocate funds to other grantees. According to the Treasury guidance,  grantees were eligible to apply for reallocated funds if they had obligated at least 65% of their initial ERA-1 allocations and they submitted a request to Treasury;  if more requests were received than there were excess funds to be reallocated, Treasury would develop a relative share formula for allocating funds:  when feasible, Treasury prioritized reallocation within the same state; and  Treasury reserved the right to prioritize grantees likely to expend all remaining ERA-1 and ERA-2 funds promptly. Treasury ultimately conducted four rounds of ERA-1 recapture and reallocation, and one round of tribal reallocation.19 Through the recapture and reallocation process, $3.140 billion dollars—or nearly 13% of all ERA-1 funding—was redistributed among grantees. ERA-2 Recapture and Reallocation Process As with ERA-1, the statute left Treasury with discretion to structure the recapture and reallocation process for ERA-2. In late March 2022, Treasury released ERA-2 reallocation guidance, which was subsequently revised in November 2022.20 The recapture process was structured similarly to the ERA-1 process, with grantee expenditures being evaluated quarterly against increasing expenditure ratios. Unlike the ERA-1 process, the ERA-2 process did not allow for Program Improvement Plans or cure periods. Another important difference is that the only ERA-2 funding subject to recapture is funding still held by Treasury. (As noted earlier, ERA-2 directed that Treasury only disburse the first 40% of a grantee’s funding initially, retaining the remaining 60% until 75% of the initial allocation had been spent.) Thus, the first 40% of all ERA-2 grant allocations is protected from recapture. Guidance,” updated September 6, 2022, p. 3, https://home.treasury.gov/system/files/136/UpdatedERA1ReallocationGuidanceSep6.pdf 19 Round 1 reallocation was announced January 7, 2022; Round 2 reallocation was announced March 14, 2022; Round 3 reallocation was announced September 26, 2022; Tribal Reallocation was announced October 21, 2022; Round 4 (final) reallocation was announced October 28, 2022. Reallocation data are available on Treasury’s website, 136/ERA2_Allocations_Eligible_Entities_572021.pdf
Treasury also periodically releases data on program expenditures by grantee:

See https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-
governments/emergency-rental-assistance-program (scrol to the bottom of the page)
To identify specific grantees and programs in states and localities, Treasury has developed a program locator tool:

See https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-
governments/emergency-governments/emergency-rental-assistance-program. 20 U.S. Department of the Treasury, “Emergency Rental Assistance Under the American Rescue Plan Act of 2021 (ERA2) Reallocation Guidance,” March 30, 2022, https://home.treasury.gov/system/files/136/Updated-ERA1-Reallocation-Guidance%203-30-%202022.pdf, and “Emergency Rental Assistance Under the American Rescue Plan Act of 2021 (ERA2) Reallocation Guidance,” updated November 15, 2022, https://home.treasury.gov/system/files/136/ERA2-Reallocation-Guidance-March-30-2022.pdf. Congressional Research Service 7 Pandemic Relief: The Emergency Rental Assistance Program As of December 2022, Treasury had conducted one round of ERA-2 reallocation, for Quarter 1, 2022, in which almost $521 million was redistributed among grantees. In terms of future reallocations of ERA-2 funding, a December 2, 2022 notice issued by Treasury stated: Grantees have continued to draw down and obligate their ERA2 funds at high rates, diminishing the need to conduct additional reallocation following the already-announced Quarter 2 and Quarter 3 2022 Assessments [based on expenditures as of June 30, 2022 and September 30, 2022]. Accordingly, Treasury will not conduct the optional Final Undrawn Funds Assessment described in the Guidance until at least June 2023, if ever.21rental-assistance-program/program-index
The National Low Income Housing Coalition (a nonprofit advocacy organization) has developed a set of tools for
analyzing selected features of state and local ERA programs as well as a spending tracker:

See https://nlihc.org/era-dashboard
ERA Program Parameters
When P.L. 116-260 created the ERA programWhen P.L. 116-260 created the ERA program under the CRF, it established parameters for how , it established parameters for how
theERA-1 funds could and should be spent. Treasury funds could and should be spent. Treasury has issued Frequently Asked Questions (FAQs) issued Frequently Asked Questions (FAQs) and
other guidance documents regarding how certain aspects of the law are to be applied.22 For regarding how certain aspects of the law are to be applied.22 For the
second round of ERAERA-2 funding, P.L. 117-2 made some changes that are applicable to funding, P.L. 117-2 made some changes that are applicable to the first
round of fundingERA-1 (i.e., expenditure deadlines); and others that are applicable only to (i.e., expenditure deadlines); and others that are applicable only to the second
roundERA-2 (i.e., income eligibility and a different cap on administrative expenses). Treasury has (i.e., income eligibility and a different cap on administrative expenses). Treasury has
revised its FAQs multiple times to reflect the requirements of both ERA-1 and ERA-2 and in revised its FAQs multiple times to reflect the requirements of both ERA-1 and ERA-2 and in
response to stakeholder feedback.23 response to stakeholder feedback.23
As noted, ERA funds are provided from Treasury to ERA funds are provided from Treasury to states and localitiesgrantees, which can use the funds , which can use the funds
to design their own rental assistance programs within the requirements of the law and Treasury to design their own rental assistance programs within the requirements of the law and Treasury
guidance. Some guidance. Some states and localitiesgrantees were able to use the new funds to supplement existing rental were able to use the new funds to supplement existing rental
assistance programs created with CARES Act or other funds, to the extent their existing programs assistance programs created with CARES Act or other funds, to the extent their existing programs
aligned with aligned with the emergency rental assistanceERA statutory requirements (which are outlined below); statutory requirements (which are outlined below);
others had to develop new programs from scratch. others had to develop new programs from scratch.

22 Treasury guidance can be found at https://home.treasury.gov/policy-issues/cares Eligible Use of Funds P.L. 116-260 directed that 90% of ERA-1 funds be spent on direct financial assistance and that up to 10% could be spent on administrative expenses and housing stability services. Treasury guidance further interpreted these limits to allow grantees to use up to 10% of ERA-1 funds for housing stability services, and up to 10% of total funds for administrative expenses. 21 U.S. Department of the Treasury, “Emergency Rental Assistance (ERA2) Under the American Rescue Plan Act of 2021, Notice Regarding the ERA2 Final Undrawn Funds Assessment,” December 2, 2022, https://home.treasury.gov/system/files/136/ERA2-FinalAssessmentNotice-FINAL12222.pdf. 22 Treasury FAQs can be found at https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/emergency-rental-assistance-/emergency-rental-assistance-
programprogram/faqs. 23 Treasury’s ERA website contains a change log of FAQs, available at https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/emergency-rental-assistance-program/faqs/change-log. FAQs were initially published in January 2021; see the January 19, 2021, FAQs at https://home.treasury.gov/system/files/136/ERA-Frequently-Asked-Questions_Pub-1-19-21.pdf. As of the cover date of this report, the FAQs have been changed seven times, in February, March, May, June, and August of 2021 and twice in July 2022. See February 22, 2021,.
23 Treasury has revised FAQs in February, March, May, June, and August of 2021. See the February FAQs at FAQs at
https://home.treasury.gov/system/files/136/ERA-Frequently-Asked-Questions_Pub-2-22-21.pdfhttps://home.treasury.gov/system/files/136/ERA-Frequently-Asked-Questions_Pub-2-22-21.pdf, March; March 16, 2021, FAQs at FAQs at
https://home.treasury.gov/system/files/136/ERA-Frequently-Asked-Questions_Pub-3-16-21.pdfhttps://home.treasury.gov/system/files/136/ERA-Frequently-Asked-Questions_Pub-3-16-21.pdf, May; May 7, 2021, FAQs at FAQs at
https://home.treasury.gov/system/files/136/ERA2FAQs%205-6-21.pdfhttps://home.treasury.gov/system/files/136/ERA2FAQs%205-6-21.pdf (hereinafter, “Treasury May 7, 2021, FAQs”),
June; June 24, 2021, FAQs at https://home.treasury.gov/system/files/136/ERA_FAQs_6-24-21.pdf FAQs at https://home.treasury.gov/system/files/136/ERA_FAQs_6-24-21.pdf (hereinafter, “Treasury June 24,
2021, FAQs”), and August FAQs; August 25, 2021, FAQs at https://home.treasury.gov/system/files/136/ERA-FAQ-8-25-2021.pdf at https://home.treasury.gov/system/files/136/ERA-FAQ-8-25-2021.pdf (hereinafter,
“Treasury August 25, 2021, FAQs”).
; July 6, 2022, FAQs at https://home.treasury.gov/system/files/136/ERA_FAQ_7622.pdf; and July 27, 2022, FAQs at https://home.treasury.gov/system/files?file=136/ERA-FAQ-7.27.22.pdf. Congressional Research Service Congressional Research Service

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Eligible Use of Funds
P.L. 116-260 directed that 90% of ERA funds be spent on direct financial assistance and that up to
10% could be spent on administrative expenses and housing stability services.24 Note that
Treasury guidance further interpreted these limits; see the “Administrative Costs and Housing
Stability Services” section.
For the second round of ERA fundingFor ERA-2, P.L. 117-2 directed that no more than 15% , P.L. 117-2 directed that no more than 15% of ERA-2 funds be spent on be spent on
administrative expenses and 10% be spent on housing stability services, leaving at least 75% to administrative expenses and 10% be spent on housing stability services, leaving at least 75% to
be spent on direct financial assistance. be spent on direct financial assistance.
Financial Assistance
P.L. 116-260 defined financial assistance as assistance to tenants for P.L. 116-260 defined financial assistance as assistance to tenants for
 rent and rental arrears,  rent and rental arrears,
 utilities and home energy costs and arrears, and  utilities and home energy costs and arrears, and
 other expenses related to housing incurred due, directly or indirectly, to the  other expenses related to housing incurred due, directly or indirectly, to the
COVID-19 outbreak, as defined by the Treasury Secretary. COVID-19 outbreak, as defined by the Treasury Secretary.
The definition of financial assistance under P.L. 117-2 The definition of financial assistance under P.L. 117-2 for ERA-2 is nearly identical, except when it comes to is nearly identical, except when it comes to
other expenses related to housingother expenses related to housing. The P.L. 117-2 definition ; ERA-2 does not require that the expenses be does not require that the expenses be
related to the COVID-19 outbreak. related to the COVID-19 outbreak.
Treasury issued an FAQ Treasury issued an FAQ document in January 2021 clarifying that telecommunications services in January 2021 clarifying that telecommunications services
are not considered utilities under this program.are not considered utilities under this program.2524 However, Treasury However, Treasury later revised the revised the FAQsFAQ in February 2021 to to
define “other expenses” eligible for assistance to include internet service, if it allows renters to define “other expenses” eligible for assistance to include internet service, if it allows renters to
engage in distance learning, telework, and telemedicine and obtain government services.engage in distance learning, telework, and telemedicine and obtain government services.2625
Additional “other expenses” identified in the FAQ include relocation expenses and rental fees (if Additional “other expenses” identified in the FAQ include relocation expenses and rental fees (if
a household has been displaced due to COVID-19), and accrued late fees. a household has been displaced due to COVID-19), and accrued late fees.
Length of Assistance
Under Under P.L. 116-260ERA-1, assistance , assistance cancould be provided for no more than 12 months, with the possibility be provided for no more than 12 months, with the possibility
of one 3-month extension. Payments made for prospective rent of one 3-month extension. Payments made for prospective rent arewere subject to additional subject to additional
limitations; they limitations; they cancould only be provided in 3-month increments and only if rental arrearages only be provided in 3-month increments and only if rental arrearages arewere
addressed. addressed.
Under the terms of P.L. 117-2, recipients can receive no more than 18 months of assistance under Under the terms of P.L. 117-2, recipients can receive no more than 18 months of assistance under
both rounds of ERA combinedboth rounds of ERA combined, with ERA-1 assistance still limited to no more than 15 months. .
Treasury’s May 7, 2021 Treasury’s May 7, 2021, FAQs clarified that grantees must prohibit landlords from evicting FAQs clarified that grantees must prohibit landlords from evicting
tenants for nonpayment of rent during the period for which they have received prospective rent tenants for nonpayment of rent during the period for which they have received prospective rent
paymentspayments or for which rental arrearages were paid. Treasury’s guidance also encourages grantees . Treasury’s guidance also encourages grantees to set policies prohibiting landlords who receive payment for rental arrearages from evicting tenants for nonpayment of rent for some period, consistent with applicable law.26 Payments P.L. 116-260 directed that ERA-1 payments be made directly to landlords or utility providers, but it allowed payments to be made directly to tenants if landlords or utility providers were unwilling to accept such payments. In its May 7, 2021, FAQs, Treasury reduced the amount of time grantees 24 January 9, 2021, FAQ #1,to set policies prohibiting landlords who

24 Treasury’s initial guidance interpreted this 10% limitation as applying to both administrative fees and housing
stability services combined. Subsequent guidance has amended that interpretation to allow grantees to use up to 10% of
ERA-1 funds for housing stability services, and up to 10% of total funds for administrative expenses.
25 See the January FAQ at https://home.treasury.gov/system/files/136/ERA-Frequently-Asked-Questions_Pub-1-19- https://home.treasury.gov/system/files/136/ERA-Frequently-Asked-Questions_Pub-1-19-
21.pdf. 21.pdf.
26 See the February FAQ revision at25 February 22, 2021, FAQ #7, https://home.treasury.gov/system/files/136/ERA-Frequently-Asked- https://home.treasury.gov/system/files/136/ERA-Frequently-Asked-
Questions_Pub-2-22-21.pdfQuestions_Pub-2-22-21.pdf, FAQ 7, p. 4. 26 May 7, 2021, FAQ #32, https://home.treasury.gov/system/files/136/ERA2FAQs%205-6-21.pdf. .
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receive payment for rental arrearages from evicting tenants for nonpayment of rent for some
period, consistent with applicable law.27
Payments
P.L. 116-260 directed that payments be made directly to landlords or utility providers, but it
allows payments to be made directly to tenants if landlords or utility providers are unwilling to
accept such payments. According to the May 7, 2021, FAQs, Treasury has reduced the amount of
time grantees mustunder ERA-1 were required to wait for landlords or utility providers to respond to outreach efforts before wait for landlords or utility providers to respond to outreach efforts before
making payments directly to tenants.making payments directly to tenants.28
Landlords27 ERA-1 guidance clarified that landlords are permitted to aid their tenants in applying for assistance, or they may apply directly. are permitted to aid their tenants in applying for assistance, or they may apply directly.
Landlords who apply directly must meet certain conditions (including obtaining tenant signatures, Landlords who apply directly must meet certain conditions (including obtaining tenant signatures,
notifying tenants of the application, and ensuring any funds received are applied to tenants’ rental notifying tenants of the application, and ensuring any funds received are applied to tenants’ rental
obligations). obligations).
The requirements in P.L. 117-2 The requirements in P.L. 117-2 for ERA-2 are not as specific about landlord involvement, and, according to are not as specific about landlord involvement, and, according to
guidance in the May 7, 2021guidance in the May 7, 2021, FAQs, grantees may use their ERA-2 funding to offer assistance FAQs, grantees may use their ERA-2 funding to offer assistance
directly to tenants without first attempting to contact landlords or utility providers.directly to tenants without first attempting to contact landlords or utility providers.2928
Additionally, a revision to the FAQs issued on June 24, 2021, permitted grantees Additionally, a revision to the FAQs issued on June 24, 2021, permitted grantees under both ERA-1 and ERA-2 to enter into data to enter into data
sharing agreements and bulk payment arrangements for large landlords and utility providers.sharing agreements and bulk payment arrangements for large landlords and utility providers.30
29 The August The August 25, 2021, revisions to the FAQs allow grantees to make bulk payments to landlords and utility revisions to the FAQs allow grantees to make bulk payments to landlords and utility
providers in advance of tenant eligibility determination, as long as application and documentation providers in advance of tenant eligibility determination, as long as application and documentation
requirements are met within six months.requirements are met within six months.3130
The August The August 2021 FAQs further allow that, upon the request of a tenant, a grantee may provide FAQs further allow that, upon the request of a tenant, a grantee may provide
both ERA-1 and ERA-2 assistance for rental and utility arrears after an otherwise eligible tenant has vacated a unit.assistance for rental and utility arrears after an otherwise eligible tenant has vacated a unit.3231
Administrative Costs and Housing Stability Services
Under P.L. 116-260, the remaining 10% of grant funds can be used for grantee administrative
costs and housing stability services, which Treasury has interpreted as allowing granteesFor ERA-1, grantees were authorized to use up to use up
to 10% of grant amounts each for housing stability services and administrative costs.to 10% of grant amounts each for housing stability services and administrative costs.3332
P.L. 116-260 defined “housing stability services” as case management and other services related P.L. 116-260 defined “housing stability services” as case management and other services related
to COVID-19, to be defined by the Secretary, that are intended to keep tenants stably housed. It to COVID-19, to be defined by the Secretary, that are intended to keep tenants stably housed. It
restricted administrative expenses to those tied to providing financial assistance and housing restricted administrative expenses to those tied to providing financial assistance and housing
stability services, including for data collection and reporting requirements. stability services, including for data collection and reporting requirements.
For ERA-2, P.L. 117-2 established a cap of up to 15% of total grant funding for administrative expenses and P.L. 117-2 established a cap of up to 15% of total grant funding for administrative expenses and
up to 10% for housing stability services. The law defined “housing stability services” as case up to 10% for housing stability services. The law defined “housing stability services” as case
management and other services intended to keep households stably housed, without reference to management and other services intended to keep households stably housed, without reference to
COVID-19. It defined “administrative expenses” as those included under P.L. 116-260, as well as COVID-19. It defined “administrative expenses” as those included under P.L. 116-260, as well as
costs associated with other affordable rental housing and eviction prevention activities. costs associated with other affordable rental housing and eviction prevention activities.

27 Treasury May 7, 2021, FAQs, FAQ 32, p. 14.
28 Treasury May 7, 2021, FAQs, FAQ 12, p. 8.
29 Treasury May 7, 2021, FAQs, FAQ 12, p. 8.
30 Treasury June 24, 2021, FAQs, FAQ 38, p. 16.
31 Treasury August 25, 2021, FAQs, FAQ 38, p. 17.
32 Treasury August 25, 2021, FAQs, FAQ 40, p. 17.
33 See footnote 24.
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9 Individual Eligibility and Prioritization For ERA-1, P.L. 116-260 established a three-part eligibility test based on income level, income loss or other financial hardship, and risk of homelessness or housing instability. It also established 27 May 7, 2021, FAQ #12, https://home.treasury.gov/system/files/136/ERA2FAQs%205-6-21.pdf. 28 Ibid. 29 June 24, 2021, FAQ #38, https://home.treasury.gov/system/files/136/ERA_FAQs_6-24-21.pdf. 30 August 25, 2021, FAQ #38, https://home.treasury.gov/system/files/136/ERA-FAQ-8-25-2021.pdf. 31 August 25, 2021, FAQ #40, https://home.treasury.gov/system/files/136/ERA-FAQ-8-25-2021.pdf. 32 March 25, 2021, FAQ #29, https://home.treasury.gov/system/files/136/ERA-Frequently-Asked-Questions_Pub-3-16-21.pdf. Congressional Research Service 10 Pandemic Relief: The Emergency Rental Assistance Program

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Individual Eligibility and Prioritization
P.L. 116-260 established a three-part eligibility test based on income level, income loss or other
financial hardship, and risk of homelessness or housing instability. It also established a set of a set of
income targeting requirements to guide states and localities in prioritizing assistance. P.L. 117-2 income targeting requirements to guide states and localities in prioritizing assistance. P.L. 117-2
largely adopted the same requirementslargely adopted the same requirements for ERA-2, but with some changes. , but with some changes.
Eligibility
Under Under P.L. 116-260ERA-1, to be eligible for direct financial assistance or housing stability services, , to be eligible for direct financial assistance or housing stability services,
households must be renters and households must be renters and
 low-income, defined (consistent with federal housing law) as having income at or  low-income, defined (consistent with federal housing law) as having income at or
below 80% of local area median income as established by the Department of below 80% of local area median income as established by the Department of
Housing and Urban Development (HUD); Housing and Urban Development (HUD);
 experiencing financial hardship, as evidenced by receipt of unemployment  experiencing financial hardship, as evidenced by receipt of unemployment
benefits or a written attestation of other financial hardship (income loss or benefits or a written attestation of other financial hardship (income loss or
increased expenses) related directly or indirectly to the COVID-19 pandemic; increased expenses) related directly or indirectly to the COVID-19 pandemic;
and and
 have at least one member at risk of homelessness or housing instability, as  have at least one member at risk of homelessness or housing instability, as
evidenced by past due rent or utility notices (including eviction notices), unsafe evidenced by past due rent or utility notices (including eviction notices), unsafe
living conditions, or other evidence as established by the grantee. living conditions, or other evidence as established by the grantee.
The eligibility definition The eligibility definition in P.L. 117-2for ERA-2 is largely the same, although it does not include the detail as to how an individual can does not include the detail as to how an individual can
demonstrate a risk of homelessness or housing insecurity that was included demonstrate a risk of homelessness or housing insecurity that was included in P.L. 116-260for ERA-1; nor ; nor
does does itERA-2 require that financial hardship be related to the COVID-19 pandemic. A household is require that financial hardship be related to the COVID-19 pandemic. A household is
eligible for assistance under ERA-2 as long as hardship has occurred due to eligible for assistance under ERA-2 as long as hardship has occurred due to or during the during the
pandemic. pandemic.
Neither Neither lawERA-1 nor ERA-2 addresses noncitizen eligibility for assistance under the ERA program. addresses noncitizen eligibility for assistance under the ERA program.3433
Prioritization
P.L. 116-260 directs grantees Under both ERA-1 and ERA-2, grantees are to prioritize the following individuals for direct financial assistance to prioritize the following individuals for direct financial assistance
and housing stability services: and housing stability services:
 very low-income tenants, defined (consistent with federal housing law) as having  very low-income tenants, defined (consistent with federal housing law) as having
income at or below 50% of local area median income as established by HUD; income at or below 50% of local area median income as established by HUD;
and and
 applicants who are unemployed and have been unemployed for the prior 90 days.  applicants who are unemployed and have been unemployed for the prior 90 days.
The law permits states and localities to further establish their own prioritization policies The law permits states and localities to further establish their own prioritization policies. Documentation P.L. 116-260 specified that for ERA-1, grantees may determine an applicant’s income eligibility based on annual income or current monthly income (subject to three-month recertification). P.L. 117-2 does not include.
P.L. 117-2 made these provisions provisions applicable to the second round of ERA fundingrelated to income determination for ERA-2. .

3433 Some questions have arisen as to whether noncitizen eligibility restrictions under the Personal Responsibility and Some questions have arisen as to whether noncitizen eligibility restrictions under the Personal Responsibility and
Work Responsibility Act of 1996 (PRWORA; Title IV of P.L. 104-193, as amended) apply to assistance under the Work Responsibility Act of 1996 (PRWORA; Title IV of P.L. 104-193, as amended) apply to assistance under the
ERA program. To date, Treasury has not issued guidance on the applicability of PRWORA noncitizen restrictions to ERA program. To date, Treasury has not issued guidance on the applicability of PRWORA noncitizen restrictions to
these funds. For more information about PRWORA’s restrictions, see CRS Report R46510, these funds. For more information about PRWORA’s restrictions, see CRS Report R46510, PRWORA’s Restrictions on
Noncitizen Eligibility for Federal Public Benefits: Legal Issues. .
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Documentation
P.L. 116-260 specifies that grantees may determine an applicant’s income eligibility based on
annual income or current monthly income (subject to three-month recertification).
P.L. 117-2 does not include provisions related to income determination.
Treasury’s May 7, 2021,Treasury’s May 7, 2021 FAQs encouraged grantees to be flexible in establishing eligibility for both ERA-1 and ERA-2. The FAQs state: “Treasury strongly encourages grantees to avoid FAQs state: “Treasury strongly encourages grantees to avoid
establishing documentation requirements that are likely to be barriers to participation for eligible establishing documentation requirements that are likely to be barriers to participation for eligible
households.”households.”3534 For example, the FAQs say a grantee may rely on an applicant’s self-attestation of For example, the FAQs say a grantee may rely on an applicant’s self-attestation of
income under certain circumstancesincome under certain circumstances.36
Funding Availability and Reallocation
P.L. 116-260 made first round ERA funds available to grantees through December 31, 2021; the
deadline was subsequently extended to September 30, 2022, by P.L. 117-2. However, beginning
September 30, 2021, the law directs the Treasury Secretary to recapture any “excess” unobligated
funds (as determined by the Secretary) and to reallocate them to grantees that have obligated at
least 65% of their ERA-1 funds for eligible purposes (discussed below). Grantees receiving
reallocated funds may request up to a 90-day extension of the availability deadline, to December
29, 2022.
Funding provided through P.L. 117-2 is available until September 30, 2025. Beginning March 31,
2022, the Treasury Secretary is directed to reallocate undisbursed funds37 to grantees that have
obligated 50% or more of their total allocated funds. These reallocated funds can only be used for
financial assistance. Grantees that have obligated at least 75% of their funds for eligible purposes
as of October 1, 2022, may obligate remaining unobligated funds for a broader range of other
affordable rental housing and eviction prevention purposes for very low-income families.
ERA-1 Recapture and Reallocation Process
On October 4, 2021, Treasury released initial guidance on its plan for reallocating “excess”
unobligated ERA-1 funding, which is summarized below.38
Grantees that have obligated less than 65% of their ERA-1 allocations are required to submit a
Program Improvement Plan to Treasury no later than November 15, 2021, as well as progress
reports thereafter. The Program Improvement Plan is a factor Treasury will consider in
determining excess funds.
Beginning in November 2021, and every two months thereafter, through at least March 31, 2022,
Treasury will assess grantees for excess funds. Treasury will determine excess funds based on the
following factors:

35 Treasury May 7, 2021, FAQs, FAQ 1, p. 2.
36 Treasury May 7, 2021, FAQs, FAQ 4, p. 5.
37 As noted earlier, P.L. 117-2 directed Treasury to disburse ERA-2 funding allocations in phases, based on grantee
spending rates. Specifically, Treasury was directed to distribute no less than the first 40% of ERA-2 funds within 60
days of enactment, with the remainder to be distributed after grantees expend 75% of their initial ERA-2 allocation. It
is these undisbursed ERA-2 funds held by Treasury that are subject to potential reallocation.
38 Department of the Treasury, “Emergency Rental Assistance Under the Consolidated Appropriations Act, 2021
Reallocation Guidance,” October 4, 2021, https://home.treasury.gov/system/files/136/ERA-Reallocation-Guidance.pdf
(hereinafter, “Treasury, October 4, 2021, guidance”).
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 Insufficient Expenditure Ratios: Grantees with an expenditure ratio below a
specified threshold may be determined to have excess funds based on that
threshold. The expenditure ratio is calculated as the share of a grantee’s
allocation (excluding 10% for administrative costs) spent on assistance to eligible
households.
 For the first assessment, in November 2021, the threshold is 30%, based on
expenditure data through September 30, 2021.
 Thereafter, the threshold will be increased by five percentage points each
month.
 Failure to Make Required Submissions: Grantees that have obligated less than
65% of their funds and fail to submit a Program Improvement Plan, or fail to
confirm progress on that plan, may be determined to have excess funds measured
at 10% of their allocation.
 Unobligated Funds at Final Assessment: Grantees that have unobligated funds
remaining on March 31, 2022, may have those funds determined to be excess.
Whether Treasury will recapture funds from a grantee, and the amount to be recaptured, depends
on various formulas and mitigating considerations, including the Program Improvement Plan,
outlined in the Treasury guidance.39
Once Treasury has made a recapture, it may reallocate funds to other grantees. According to the
Treasury guidance,
 grantees will be eligible to apply for reallocated funds if they have obligated at
least 65% of their own initial ERA-1 allocations and they submit a request to
Treasury;
 Treasury will “periodically” determine whether there are sufficient requests for
reallocated funding, based on capacity and indicators of need, to trigger a
reallocation; and
 if more requests are received than there are excess funds to be allocated, Treasury
will develop a relative share formula for allocating funds:
 when feasible, Treasury will prioritize reallocation within the same state; and
 Treasury may also prioritize grantees likely to expend all remaining ERA-1
and ERA-2 funds “promptly.”
Grantees may also voluntarily request that their ERA-1 funds be reallocated to another grantee
within the same state that has obligated at least 65% of its funds.
Reporting Requirements
The Treasury Secretary, in consultation with the Secretary of Housing and Urban Development, is
required under P.L. 116-260 to provide quarterly reports on a number of specified program
indicators, including the number of households served by the program, their income profiles, the
acceptance rate of applicants, and the types and amounts of assistance. Grantees must establish

39 For example, a grantee can avoid recapture if, by November 15, 2021, it certifies it has met either the 30%
expenditure ratio or the 65% obligation threshold. For more details, see Treasury, October 4, 2021, guidance.
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data privacy guidelines for collecting information. Treasury has begun publishing data from these
reports on its website.40
P.L. 117-2 did not contain reporting requirements for ERA-2. Treasury’s May 7, 2021, FAQs
encouraged ERA-2 grantees to comply with the data privacy and security requirements
established for ERA-1.41 Treasury subsequently released reporting guidance applicable to both
ERA-1 and ERA-2 grantees.42
Outstanding Questions
This section discusses possible questions about the implementation of the ERA program.
How are local programs structured?
States and localities are charged with distributing ERA assistance to eligible renters based on a
limited set of program parameters. Within those parameters, states and localities have authority to
determine, for example,
 who will administer assistance (i.e., a government entity vs. a nonprofit or
community partner);
 how to prioritize among the eligible uses of the funds (e.g., arrears vs.
prospective payments; utilities vs. rent);
 how to ration limited benefits (e.g., lotteries for assistance vs. first-come first-
served or referral-based processes);
 whether and how to further prioritize applicants (e.g., adopting deeper income
targeting than is required by law);
 how much documentation to require of applicants and for recertification periods;
 the amount and duration of benefits provided;
 whether to place conditions on the recipients of assistance (e.g., requiring
landlords to accept partial payment to reduce debt obligations, prohibiting
landlords that accept payment from pursuing eviction); and
 whether and what to provide in terms of housing stability services.
One factor that may influence state and local decisions is the extent to which any previous
emergency rental assistance programs they administered already met, or could be easily adjusted
to meet, the requirements for ERA funding. To the extent states and localities were able to fund
existing programs with their ERA dollars instead of having to establish new programs, the
assistance could potentially be distributed more quickly. Treasury found this to be the case in a
“Key Findings” interim reporting document issued in July 2021.43

40 See https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/
emergency-rental-assistance-program.
41 Treasury May 7, 2021, FAQs, FAQ 14, p. 9.
42 See ERA Reporting Guidance, issued June 30, 2021, at https://home.treasury.gov/system/files/136/ERA-Reporting-
Guidance.pdf.
43 U.S. Treasury, “Emergency Rental Assistance Data Shows Programs Ramping Up, but States and Localities Must Do
More to Accelerate Aid,” p. 4, available at https://home.treasury.gov/system/files/136/2021-07-02-ERA-Data-Blog-
Post-vF.pdf.
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The ability of state and local governments to structure their programs differently means that the
experience of similarly situated renters seeking emergency rental assistance will likely vary
geographically, including how and whether individual renters are made aware of the availability
of ERA funds in their communities, as well as their individual eligibility and likelihood of being
assisted.
Treasury’s June FAQ revision included encouragement for grantees to coordinate to reduce
barriers and delays in providing assistance created by differences in local programs in the same
region. The agency also released “promising practices” to ensure assistance can quickly reach
renters in need.44
Will rental assistance prevent loss of housing?
Both the amount and geographic distribution of ERA funding, as well as how quickly it is
distributed, could determine the extent to which the assistance may help protect renters from
eviction.
Because there is no definitive estimate of renters in arrears and the amounts they owe, it is
unknown whether all renters who are behind will be able to receive assistance with available
funding. Estimates of the need for rental assistance vary and may depend on the data source and
methodology (which are not examined in this report).45 Research released in January 2021
predicted that the first round of ERA rental assistance would be insufficient to meet the needs of
all delinquent renters.46 Since that time, P.L. 117-2 funded another $21.550 billion in rental
assistance as well as additional direct aid to individuals via stimulus payments and refundable
child tax credits. Newer estimates project rental arrearages to be less than total ERA funding.47
Whether existing ERA funding will be sufficient to address outstanding arrearages and avoid
widespread housing disruption when eviction moratoriums end is yet to be seen.
More recently, the speed and effectiveness of the distribution of ERA funds has been of
increasing concern to stakeholders and policymakers. The need for more time to distribute ERA
assistance to eligible households to forestall evictions was asserted by the Administration in its
June 2021 extension of the CDC eviction moratorium (through the end of July)48 and in its
issuance of a new eviction moratorium in August 2021 (through October 3, 2021).49 (The CDC’s

44 See https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/
emergency-rental-assistance-program/promising-practices.
45 Various estimates made in 2020 predicted arrears of $7 billion, $25-$34 billion, and $70 billion by the end of the
year. See as well as financial hardship related to COVID-19.35 Treasury also authorized the use of categorical eligibility and fact-specific proxies for confirming eligibility.36 Reporting Requirements The Treasury Secretary, in consultation with the Secretary of Housing and Urban Development, is required under P.L. 116-260 to provide quarterly reports on a number of specified ERA-1 program indicators, including the number of households served by the program, their income profiles, the acceptance rate of applicants, and the types and amounts of assistance. Grantees must establish data privacy guidelines for collecting information. Treasury publishes data from these reports on its website.37 P.L. 117-2 did not contain reporting requirements for ERA-2. Treasury’s May 7, 2021 FAQs encouraged ERA-2 grantees to comply with the data privacy and security requirements established for ERA-1.38 Treasury subsequently released reporting guidance applicable to both ERA-1 and ERA-2 grantees.39 Program Performance and Future Considerations ERA was unique in the context of federal housing assistance programs in that it was implemented rapidly, and on a large scale, effectively from scratch. HUD has announced it is funding research to better understand how the program functioned in its goal of preventing eviction and housing instability among low-income households during the COVID-19 pandemic.40 While findings from that research will not be available for several years, data and information are available that provide some indication of how the program has functioned and who it has served. Funding Distribution and Reallocation The formula that was used to allocate ERA-1 funding was based solely on population. The same formula was used to distribute ERA-2 funding, although a portion of funds were set aside to be 34 May 7, 2021, FAQ #1, https://home.treasury.gov/system/files/136/ERA2FAQs%205-6-21.pdf. 35 May 7, 2021, FAQ #4, #2, https://home.treasury.gov/system/files/136/ERA2FAQs%205-6-21.pdf. 36 May 7, 2021, FAQ #4, https://home.treasury.gov/system/files/136/ERA2FAQs%205-6-21.pdf. 37 See https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/emergency-rental-assistance-program. 38 May 7, 2021, FAQ # 14, https://home.treasury.gov/system/files/136/ERA2FAQs%205-6-21.pdf. 39 See ERA Reporting Guidance, issued June 30, 2021, at https://home.treasury.gov/system/files/136/ERA-Reporting-Guidance.pdf. 40 U.S. Department of Housing and Urban Development, Notice of Funding Opportunity, Impact Evaluation of the Emergency Rental Assistance (ERA) Program, August 25, 2022, https://www.hud.gov/sites/dfiles/SPM/documents/ImpactEvaluationofTheEmergencyAssistanceERAProgramV.2FY22_NOFO.pdf and U.S. Department of Housing and Urban Development, “HUD Awards $2 Million to Assess the Impact of Emergency Rental Assistance on Housing Stability,” press release, November 3, 2022, https://www.hud.gov/press/press_releases_media_advisories/hud_no_22_226. Congressional Research Service 12 link to page 16 Pandemic Relief: The Emergency Rental Assistance Program distributed to jurisdictions considered to have “high needs” based on factors including rental market costs and high cost burdens among low-income renter households. The formula included a small state minimum, which meant that low population states (those that received the small state minimum) were given larger per-capita allocations than large population states.41 Observers have critiqued the formula for directing too much funding to smaller states with relatively fewer renters in need and not enough to states with the highest proportion of vulnerable renters. For example, Abt Associates released a report in January 2022 based on a study of eight states, in which they report: “representatives from the less populous states noted that their allocations were likely too large given the need for rental assistance in their states.”42 A December 2022 Government Accountability (GAO) report had similar findings, noting that 4 of the 21 grantees they interviewed reported that funding in excess of the needs of eligible renters was an obstacle to their spending.43 The GAO report compared initial ERA-1 allocations to the number of low-income renters in each state and found the total amount of funding available to low-income renters varied significantly across states, from as low as $602 per low-income renter in New York to $4,588 per low-income renter in Wyoming.44 As noted earlier, $3.1 billion, or 12.6%, of ERA-1 funding was ultimately redistributed from relatively slower-spending grantees to relatively faster-spending grantees. Some of that funding moved between grantees within states and some moved across states. Table 2 presents information on ERA-1 redistribution amounts across states, tribes, and territories. The state-level figures presented reflect the aggregated totals for all grantees within a state (both state and local grantees, but not tribes within a state). The states are sorted by amount of redistributed funding received within or forfeited outside of the state; states receiving the small state minimum are italicized. (Because ERA-2 reallocations are still taking place, that information is not included.) Table 2. ERA-1 Reallocation Change in ERA-1Total Relative Change in ERA-1 ERA-1Initial Funding Based on Total Funding Based on Allocation Reallocation Reallocation State ($ in millions) ($ in millions) (%) California 2,611 406 16% New York 1,282 298 23% Texas 1,947 148 8% New Jersey 589 140 24% Il inois 835 38 5% 41 U.S. Government Accountability Office (GAO), Emergency Rental Assistance: Treasury’s Oversight is Limited by Incomplete Data and Risk Assessment, GAO-23-105410, December 2022, p. 15, https://www.gao.gov/assets/gao-23-105410.pdf (hereinafter, Emergency Rental Assistance: Treasury’s Oversight is Limited by Incomplete Data and Risk Assessment). 42 Abt Associates, Lessons from Eight States Regarding Factors That Have Contributed to States’ ERA1 Spending Rates, January 18, 2022, pp. 3-4, https://www.abtassociates.com/files/insights/reports/2022/era-findings-from-8-states_abt-2021.pdf (hereinafter, Lessons from Eight States Regarding Factors That Have Contributed to States’ ERA1 Spending Rates). 43 Emergency Rental Assistance: Treasury’s Oversight is Limited by Incomplete Data and Risk Assessment, p. 15. 44 Emergency Rental Assistance: Treasury’s Oversight is Limited by Incomplete Data and Risk Assessment, pp. 17-18. Congressional Research Service 13 Pandemic Relief: The Emergency Rental Assistance Program District of Columbia 200 33 17% Minnesota 375 33 9% Pennsylvania 848 27 3% Oregon 281 21 7% Washington 510 20 4% Florida 1,441 19 1% Virginia 570 16 3% North Carolina 703 15 2% Colorado 385 12 3% Louisiana 308 8 3% Hawaii 200 7 3% Nevada 208 6 3% Massachusetts 457 5 1% Nebraska 200 3 2% Maryland 402 3 1% Connecticut 236 3 1% Georgia 710 2 0% Arizona 492 2 0% Missouri 408 2 0% Oklahoma 264 1 1% Kansas 200 1 1% Alaska 200 1 1% South Carolina 346 0 0% New Mexico 200 0 0% Michigan 661 0 0% Iowa 210 - 0% Maine 200 - 0% Rhode Island 200 - 0% Wisconsin 387 (0) 0% Indiana 448 (4) -1% Arkansas 201 (9) -4% Ohio 775 (11) -1% Utah 216 (19) -9% Kentucky 297 (20) -7% Mississippi 200 (25) -12% Vermont 200 (31) -16% New Hampshire 200 (57) -29% Tennessee 457 (72) -16% Congressional Research Service 14 link to page 16 link to page 19 link to page 16 Pandemic Relief: The Emergency Rental Assistance Program Delaware 200 (74) -37% Idaho 200 (77) -38% West Virginia 200 (91) -46% Alabama 326 (110) -34% Montana 200 (137) -69% North Dakota 200 (151) -76% Wyoming 200 (168) -84% South Dakota 200 (183) -91% American Samoa 10 (6) -64% Guam 34 (7) -21% Northern Mariana Islands 10 - 0% Puerto Rico 325 (85) -26% Virgin Islands 21 (16) -77% Tribal Governments 800 47 6% Source: Prepared by CRS based on data reported by the U.S. Department of the Treasury. Notes: The 50 states and the District of Columbia are ordered from largest dol ar reallocation received to largest dol ar recapture. Grantees in small states (a total of 18 states, defined as those that received the small state minimum) accounted for a disproportionate share of funding that was redistributed. Nearly 33% ($994 million) of the $3.1 billion in ERA-1 funding that was ultimately redistributed came from grantees in 10 of those small states. Grantees in those 10 states, in aggregate, had 50% of their overall initial allocation redistributed to other states; individual states’ losses ranged from 12% (Mississippi) to 91% (South Dakota) of their overall allocations. Five larger population states (California, New York, Texas, New Jersey, and Illinois) combined received more than $1.0 billion in addition to their initial ERA-1 allocations. Together, they received more than 33% of all reallocated funding. Although large states received the largest share of reallocated funds, six small states were net recipients of reallocated funding, in aggregate receiving $45 million, or about 1% of all reallocated funding. Individual small state gains relative to their overall allocations ranged from less than 0.2% (New Mexico) to 16.5% (District of Columbia). While Table 2 presents information about how money moved, in aggregate, across states, territories, and tribal governments, it does not show how much money moved between grantees within states. As noted earlier, Treasury prioritized in-state reallocation of ERA funding in two ways: (1) grantees at risk of having funds recaptured could voluntarily reallocate all or a portion of their excess funding to other grantees in the state; and (2) for funds that were involuntarily recaptured, Treasury prioritized first reallocation to grantees within a state before out-of-state reallocations, where possible. As shown in Table 3, the majority of reallocated ERA-1 funding was reallocated between grantees within the same state. Of the within-state redistribution, the vast majority of funds (89%) were voluntarily reallocated by grantees to other designated entities within their state. Often, these voluntary reallocations happened between states and local governments or between local governments; but in some cases, state and local governments transferred funding to tribal governments (which is part of the reason for the increase in tribal funding shown in Table 2). Congressional Research Service 15 Pandemic Relief: The Emergency Rental Assistance Program Table 3. ERA-1 Reallocation (dollars in billions) Total Share Reallocation Within State 1.820 58% Voluntary Reallocation to Designated In-State Entity 1.624 89% Reallocation Out of State 1.293 42% Total Reallocated Funding 3.113 100% Source: Prepared by CRS based on reallocation information publicly released by the U.S. Department of the Treasury. While redistribution may have addressed some of the shortcomings of the initial ERA-1 allocation formula by allowing funding to move from grantees that were unable to use it to those that could, Treasury’s decision to prioritize in-state reallocation limited the ability of reallocation to fully rebalance funding disparities in the program. According to GAO’s analysis, “large differences in the amount of funding per low-income renter in each state remained after reallocation, especially in states that received relatively low allocations.”45 Limitations in the ERA-1 funding distribution formula may have played a role in the relatively slow spending and large redistribution of ERA-1 funding; however, other factors are also likely at play. For example, demand for assistance likely varied across geographies, which may be related to the proportion of renters in the state relative to population. Further, grantees had different degrees of administrative challenges in implementing their programs (which is discussed in the next section of this report). Program Design and Administration When the ERA program was created, there was strong evidence that renters nationwide were in need of assistance.46 Yet the process of directing ERA funds to households was relatively slow to get underway. ERA was a new program for both Treasury, which administered funds at the federal level, and for many of the state, local, and tribal jurisdictions that administered funds to households. While the ERA enacting laws established some program parameters, many aspects of ERA were governed by Treasury guidance, which was initially minimal, and subsequently updated a number of times over the course of the program. Through May 2021, almost six months after funds had been made available to grantees, $1.5 billion (about 6% of total ERA-1 funds) had been expended on rent and utility payments, an expenditure rate that was generally considered to be too slow.47 In addition to potential 45 Emergency Rental Assistance: Treasury’s Oversight is Limited by Incomplete Data and Risk Assessment, p. 22. 46 For example, see Davin Reed and Eileen Divringi, Davin Reed and Eileen Divringi, Household Rental Debt During COVID-19, Federal Reserve Bank of , Federal Reserve Bank of
Philadelphia, October 2020, https://www.philadelphiafed.org/-/media/frbp/assets/community-development/reports/Philadelphia, October 2020, https://www.philadelphiafed.org/-/media/frbp/assets/community-development/reports/
household-rental-debt-during-covid-19.pdf;household-rental-debt-during-covid-19.pdf; and Stout, Risius Ross LLC, Stout, Risius Ross LLC, Analysis of Current and Expected Rental Shortfall
and Potential Eviction Filings in the U.S., National Council of State Housing Finance Agencies, September 25, 2020, , National Council of State Housing Finance Agencies, September 25, 2020,
https://www.ncsha.org/wp-content/uploads/Analysis-of-Current-and-Expected-Rental-Shortfall-and-Potential-https://www.ncsha.org/wp-content/uploads/Analysis-of-Current-and-Expected-Rental-Shortfall-and-Potential-
Evictions-in-the-US_Stout_FINAL.pdf; and John Lonski, Weekly Market Outlook: Markets Avoid Great Recession’s
Calamities, Moody’s Analytics, August 13, 2020, p. 9, https://www.moodysanalytics.com/-/media/article/2020/weekly-
market-outlook-markets-avoid-great-recessions-calamities.pdf.
46 Averting an Eviction Crisis.
47 Rent Debt in America.
48 Centers for Disease Control and Prevention, “Temporary Halt in Residential Evictions to Prevent the Further Spread
of COVID-19,” 86 Federal Register 34010-34018, June 28, 2021, https://www.federalregister.gov/d/2021-13842/p-65.
49 Centers for Disease Control and Prevention, “Temporary Halt in Residential Evictions in Communities With
Substantial or High Transmission of COVID-19 To Prevent the Further Spread of COVID-19,” 86 Federal Register
43244-43252, August 6, 2021, https://www.federalregister.gov/d/2021-16945/p-80.
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Pandemic Relief: The Emergency Rental Assistance Program

federal eviction moratorium was made unenforceable as the result of a Supreme Court decision
on August 26, 2021.50)
At the end of June 2021, Treasury released initial data on ERA-1 expenditures. It found that, of
the $25 billion allocated, grantees had spent approximately $1.45 billion on rent, utilities, and
arrears from January to May 2021, serving approximately 345,000 unique households, and
separately had committed roughly $1 billion to administrative costs and housing stability
services. The data showed spending that was accelerating; roughly half of total spending occurred
in the last month (May) of the reporting period.51 Treasury’s accompanying analysis of these data
stated “while some state and local programs are increasingly reaching households in need, others
lag far behind, and many programs have just launched in recent weeks.”52
On June 24, 2021, the White House announced a series of actions designed to help state and local
governments prevent evictions. These included the previously mentioned June revisions to
Treasury’s ERA FAQs, designed to speed the delivery of assistance; a letter to state and local
courts from the Deputy Attorney General encouraging the adoption of eviction diversion efforts
and guidance on how ERA funds can be used to support such efforts; and implementation of “a
whole-of-government effort to raise awareness about emergency rental assistance.”53 Treasury has
since posted “Promising Practices” for speeding the delivery of aid and eviction diversion to its
website,54 and the White House has hosted two summits on eviction prevention related to
distribution of ERA assistance.55
Treasury has subsequently released three additional months of data on ERA-1 expenditures,
through the end of June, July, and August 2021. These data show that the pace of expenditure
continued to grow in June, with $1.5 billion being spent on rent, utilities, and arrears serving
approximately 291,000 households in that month alone.56 Total spending increased again in July,
but at a slower pace, with just under $1.7 billion spent on rent, utilities, and arrears serving
341,000 households that month. The pace of spending increased again in August, with grantees
spending nearly $2.3 billion on assistance to serve nearly 400,000 households.57 According to
these data, in the first eight months of the program (January-August 2021), of the $25 billion in

50 For more information, see CRS Legal Sidebar LSB10638, Supreme Court Blocks Enforcement of the CDC’s Eviction
Moratorium.
51 See https://home.treasury.gov/system/files/136/ERA-Compliance-Report-06302021.xlsx.
52 Treasury Department, “Emergency Rental Assistance Data Shows Programs Ramping Up, but States and Localities
Must Do More to Accelerate Aid,” https://home.treasury.gov/system/files/136/2021-07-02-ERA-Data-Blog-Post-
vF.pdf.
53 White House, “FACT SHEET: Biden-Harris Administration Announces Initiatives to Promote Housing Stability By
Supporting Vulnerable Tenants and Preventing Foreclosures,” June 24, 2021, https://www.whitehouse.gov/briefing-
room/statements-releases/2021/06/24/fact-sheet-biden-harris-administration-announces-initiatives-to-promote-housing-
stability-by-supporting-vulnerable-tenants-and-preventing-foreclosures/.
54 SeeEvictions-in-the-US_Stout_FINAL.pdf. 47 See, for example, U.S. Department of the Treasury, “Emergency Rental Assistance Data Shows Programs Ramping Up, but States and Localities Must Do More to Accelerate Aid,” https://home.treasury.gov/system/files/136/2021-07-02-ERA-Data-Blog-Post-vF.pdf. See also Emergency Rental Assistance: Treasury’s Oversight is Limited by Incomplete Data and Risk Assessment (reporting that as of May 2021, 22% of grantees had made no payments at all). Congressional Research Service 16 link to page 14 Pandemic Relief: The Emergency Rental Assistance Program mismatches in the geographic distribution of funds, the design and implementation of state and local programs may have contributed to slow spending rates. Factors that may have contributed to the ability of jurisdictions to distribute funding expeditiously include the following:  Previous experience administering pandemic rental assistance. As described earlier in this report, some jurisdictions used CARES Act appropriations for programs such as CDBG and CRF to establish rental assistance programs. Jurisdictions that had already established an administrative process to distribute rental assistance and had experience doing so may have been in a better position to begin distributing ERA-1 funds quickly.48  Outreach and communication. Efforts to advertise and conduct community outreach may have affected initial awareness of available rental assistance, particularly among hard-to-reach populations.49 Further, outreach to landlords may have influenced their willingness to participate in the program.50  Documentation requirements. There is evidence that applicant failure to complete rental assistance applications often occurred at the point where they had to provide documentation to verify eligibility.51 In its May 7, 2021, FAQs, Treasury made clear that applicants could self-certify for certain ERA requirements including income and financial hardship (see the “Documentation” section of this report). Adopting these flexibilities may have contributed to increased program expenditures.52 After the FAQ release, in June 2021, ERA-1 expenditures doubled compared to May 2021, and they continued to increase each month through September 2021.53 Treasury’s reported application acceptance rate also began to increase.54 ERA grantee jurisdictions also had to balance quickly spending funds (and avoiding recapture) with concerns over fraudulent applications. Treasury FAQs stated that in cases of applicant self-attestation, “grantees must have in place reasonable validation or fraud-prevention procedures to 48 Lessons from Eight States Regarding Factors That Have Contributed to States’ ERA1 Spending Rates, p. 9 (“States that had previous experience managing an emergency rental assistance program, typically using Coronavirus Relief Fund money, gained valuable experience that carried over to their ERA1-funded programs, despite the need to redesign the programs to meet Treasury’s requirements.”). 49 See, for example, Claudia Aiken, Vincent Reina, and Julia Verbrugge et al., Learning from Emergency Rental Assistance Programs Lessons from Fifteen Case Studies, Housing Initiative at Penn, National Low Income Housing Coalition, and NYU Furman Center, March 10, 2021, https://furmancenter.org/files/ERA_Programs_Case_Study_-_Final.pdf (hereinafter, Learning from Emergency Rental Assistance Programs Lessons from Fifteen Case Studies). 50 See U.S. Department of the Treasury, Intentional Landlord Engagement, https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/ https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/
emergency-rental-assistance-program.
55 White House, “Readout of the White House Eviction Prevention Summit,” press release, June 30, 2021,
https://www.whitehouse.gov/briefing-room/statements-releases/2021/06/30/readout-of-the-white-house-eviction-
prevention-summit/; and White House, “Readout of the Second White House Eviction Prevention Convening,” press
release, July 21, 2021, https://www.whitehouse.gov/briefing-room/statements-releases/2021/07/21/readout-of-the-
second-white-house-eviction-prevention-convening/.
56 See https://home.treasury.gov/system/files/136/July-ERA-data.xlsx.
57 Seeemergency-rental-assistance-program/promising-practices/landlord-engagement. 51 Learning from Emergency Rental Assistance Programs Lessons from Fifteen Case Studies, p. 9 and Emergency Rental Assistance: Treasury’s Oversight is Limited by Incomplete Data and Risk Assessment, p. 12. 52 See, for example, Claudia Aiken, Isabel Harner, and Vincent Reina et al., Treasury Emergency Rental Assistance Programs in 2021: Preliminary Analysis of Program Features and Spending Performance, Housing Initiative at Penn and National Low Income Housing Coalition, December 2021, p. 2, https://www.housinginitiative.org/uploads/1/3/2/9/132946414/2021_treasury_era_program_features_and_spending_report.pdf. 53 See June ERA Report, https://home.treasury.gov/system/files/136/June-2022-ERA-Monthly-Data.xlsx. 54 See ERA1 & ERA2 Quarterly Demographic Data for Q1 2021 through Q2 2022, https://home.treasury.gov/system/files/136/ https://home.treasury.gov/system/files/136/August-ERA-Data.xlsx.
Q1-2021-Q2-2022-ERA-Demographic-Data.xlsx. Note that Treasury indicates that some reported data may need to be updated. Congressional Research Service Congressional Research Service

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link to page 21 Pandemic Relief: The Emergency Rental Assistance Program prevent abuse.”55 This tension may have made some grantees reluctant to allow for self-certification. GAO released a report in February 2022 in which it noted that “because some grantees remain uncertain about how Treasury will evaluate their payments and controls, they may face a difficult tradeoff between adopting the administrative flexibilities to avoid recapture and managing the potential risk of improper payments and recoupment.”56 Households Served Grantees have reported some basic information to Treasury on how they have spent ERA funding and who they have served. As shown in Table 4, from the first quarter of 2021 through the second quarter of 2022, grantees provided ERA assistance to 5.35 million unique households, the majority of which had incomes at or below 30% of local area median income. Roughly 70% of those served received rental assistance and about 64% received assistance with rental arrears. About 14% received utility assistance and 27% received assistance with utility arrears. Table 4. Data on Households Served by the ERA Program Data as of June 2022 ERA-1 ERA-2 Combined Unique Households Served 3,395,745 1,953,567 5,349,312 Share of Households, Income Below 30% AMI 64.3% 62.9% 63.8% Share of Households Served Receiving: Rent Assistance 69% 72% 70% Assistance with Rental Arrears 64% 63% 64% Utility Assistance 15% 13% 14% Assistance with Utility Arrears 29% 24% 27% Other Housing Assistance 11% 5% 9% Source: Prepared by CRS based on Treasury data contained in Emergency Rental Assistance Quarterly Demographic Data: Q1 2021 – Q2, 2022, available at https://home.treasury.gov/system/files/136/Q1-2021-Q2-2022-ERA-Demographic-Data.xlsx. Notes: Data are based on reporting by state, local, tribal, and territorial governments. Some grantees did not report data or may have reported inaccurately, so data may be subject to change. The December 2022 GAO report compared grantees self-reported data to low-income renter populations and found that, for grantees with available data, ERA funds served from 0.4% to 15.6% of estimated low-income renters.57 While this descriptive information helps explain how ERA resources have been used, it does not answer questions about the effectiveness and efficiency of the program in promoting housing stability and reducing evictions. In order to address those questions, the federal government is funding research to better understand the range of impacts the ERA program has had on program 55 May 7, 2021, FAQ #1, https://home.treasury.gov/system/files/136/ERA-Frequently-Asked-Questions_Pub-3-16-21.pdf. 56 U.S. Government Accountability Office, Emergency Rental Assistance: Grantee Monitoring Needed to Manage Known Risks, February 10, 2022, p. 8, https://www.gao.gov/assets/gao-22-105490.pdf. 57 Emergency Rental Assistance: Treasury’s Oversight is Limited by Incomplete Data and Risk Assessment, p. 26. Figures represent 5th and 95th percentiles. Congressional Research Service 18 Pandemic Relief: The Emergency Rental Assistance Program participants and their communities. In November 2022, HUD announced an award of $2 million to three research organizations to conduct an impact evaluation of the ERA program, with a focus on housing stability and eviction outcomes.58 The estimated project end date is October 2024, after which time findings may become available. Future of Emergency Rental Assistance As communities exhaust their federal ERA program funding, questions have been raised about the future of emergency rental assistance, both generally and in anticipation of future economic shocks or downturns. As noted earlier, some communities leveraged other pandemic relief funding prior to the creation of the ERA program to create their own emergency rental assistance programs. Further, Treasury has encouraged grantees to consider using another source of temporary pandemic aid—State and Local Fiscal Recovery Fund (SLFRF)—to meet emergency rental assistance needs once ERA funding is exhausted.59 However, like ERA, SLFRF is temporary, as obligations must be incurred by December 31, 2024. Some states and localities have begun looking for ways to continue to provide some form of emergency rental assistance for families at risk of eviction after ERA funds are expended. Sources of regular federal funding, such as CDBG or Emergency Solutions Grants, can be used for eviction prevention or emergency rental assistance.60 However, these funds can be also be used for other purposes and they are much smaller in scale than the federal ERA program. States and localities can also use their own funds for eviction prevention or emergency rental assistance. For example, California provided nearly $2 billion in its state budget for emergency rental assistance, although this funding was only sufficient to serve families who had already applied for assistance but were unable to be served because federal ERA funding had been exhausted.61 Legislation has also been introduced in Congress to fund a permanent emergency rental assistance program. For example, in the 117th Congress, the Eviction Crisis Act (S. 2182) and the Stable Families Act (H.R. 8327 ) both would have created a grant program to provide federal funding to states and localities to prevent evictions, homelessness, and other housing instability, modeled on the ERA program. Both would have authorized funding at $3 billion annually through FY2026 and at such sums as may be necessary thereafter. 58 U.S. Department of Housing and Urban Development, “HUD Awards $2 Million to Assess the Impact of Emergency Rental Assistance on Housing Stability,” press release, November 3, 2022, https://www.hud.gov/press/press_releases_media_advisories/hud_no_22_226. 59 U.S. Department of the Treasury, “Treasury Announces $30 Billion in Emergency Rental Assistance Spent or Obligated with Over 4.7 Million Payments Made to Households Through February 2022,” press release, March 30, 2022, https://home.treasury.gov/news/press-releases/jy0688. 60 For more information, see CRS Report R47204, Federal Role in Preventing Evictions. 61 Office of Governor Gavin Newsom, “Governor Newsom Signs Budget Putting Money Back in Californians’ Pockets and Investing in State’s Future,” press release, June 30, 2022, https://www.gov.ca.gov/2022/06/30/governor-newsom-signs-budget-putting-money-back-in-californians-pockets-and-investing-in-states-future/. Congressional Research Service 19Pandemic Relief: The Emergency Rental Assistance Program

ERA-1 funding distributed, grantees reported spending just over $7.5 billion on assistance, or
about 30% of total ERA-1 funding.58
Will state and local governments use other federal funding for
rental assistance and eviction prevention?
How state and local governments choose to distribute ERA funds across programs and other
governments may depend on the availability of other federal assistance during the COVID-19
pandemic for rental assistance. Separate from the ERA funding, the federal government provided
a total of $512 billion in general assistance to state and local governments through the CARES
Act ($150 billion) and P.L. 117-2 ($362 billion). General assistance through the CARES Act was
used by government recipients to fund a number of housing initiatives,59 and eligible uses of P.L.
117-2 general assistance include programs “to respond to the public health emergency … or its
negative economic impacts, including assistance to households.”60 The White House fact sheet
released in June 2021 highlighted the authority to use state and local fiscal relief funds for
eviction diversion purposes.61 In late August 2021, following the Supreme Court ruling making
the CDC’s federal eviction moratorium unenforceable, Treasury Secretary Yellen, Attorney
General Garland, and Secretary of the Department of Housing and Urban Development Fudge
sent a joint letter to governors and mayors encouraging the use of state and local general
assistance funds provided in P.L. 117-2 for eviction prevention.62
Treasury published its Interim Final Rule for allowable uses of state and local recovery funds
received through P.L. 117-2 in May 2021.63 The interim rule includes an intent to make eligible
for funding programs that respond to the negative economic impacts of the COVID-19 public
health crisis, with emphasis on mitigating any exacerbation of pre-existing economic disparities.
The interim rule also allows for payments to replace lost revenues to the extent that annual own-
source revenue growth is below the greater of (1) 4.1% or (2) the government’s average revenue
growth rate in the three years prior to the COVID-19 crisis. Such revenue replacement can then
be used for the general provision of government services under the Interim Final Rule. The
comment period for the Interim Final Rule closed on July 16, 2021, with a Final Rule expected to
be released after those comments have been considered.


58 Ibid.
59 Pandemic Oversight, “Coronavirus Relief Fund,” accessed March 23, 2021, available at
https://www.pandemicoversight.gov/track-the-money/funding-charts-graphs/coronavirus-relief-fund.
60 42 U.S.C. 801, Section 602(c)(1)(A), which provides eligible uses for the Coronavirus State Fiscal Recovery Fund.
Identical language is included in statute for the Coronavirus Local Fiscal Recovery Fund.
61 White House, “FACT SHEET: Biden-Harris Administration Announces Initiatives to Promote Housing Stability By
Supporting Vulnerable Tenants and Preventing Foreclosures,” June 24, 2021, https://www.whitehouse.gov/briefing-
room/statements-releases/2021/06/24/fact-sheet-biden-harris-administration-announces-initiatives-to-promote-housing-
stability-by-supporting-vulnerable-tenants-and-preventing-foreclosures/.
62 U.S. Treasury, “Eviction Moratorium Joint Letter,” August 27, 2021, available at https://home.treasury.gov/system/
files/136/Eviction-Moratorium-Joint-Letter.pdf.
63 For access to the Interim Final Rule and more information on funding, see Treasury Department, “Coronavirus State
and Local Fiscal Recovery Funds,” May 2021, available at https://home.treasury.gov/policy-issues/coronavirus/
assistance-for-state-local-and-tribal-governments/state-and-local-fiscal-recovery-funds.
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Pandemic Relief: The Emergency Rental Assistance Program


Author Information

Grant A. Driessen Grant A. Driessen
Libby Perl Libby Perl
Specialist in Public Finance Specialist in Public Finance
Specialist in Housing Policy Specialist in Housing Policy


Maggie McCarty Maggie McCarty

Specialist in Housing Policy Specialist in Housing Policy



Disclaimer
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Congressional Research Service Congressional Research Service
R46688 R46688 · VERSION 1011 · UPDATED
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