Pandemic Relief: The Emergency Rental Assistance Program

Pandemic Relief: The Emergency Rental Assistance Program

Pandemic Relief: The Emergency Rental
January 10, 2023
Assistance Program
Grant A. Driessen
In response to concerns about the economic effects of the COVID-19 pandemic on renters and
Specialist in Public Finance
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
Maggie McCarty
ERA funding—$21.55 billion—was included in Section 3201 of the American Rescue Plan Act
Specialist in Housing Policy
of 2021 (P.L. 117-2). Throughout 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, localities, and territories via a per capita formula allocation. The formula

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.
P.L. 116-260 established various parameters for how the ERA-1 funding can be used. Among other requirements, states and
localities must use the bulk of funds for financial assistance, defined to include rental assistance and utility assistance
(including payment of arrearages as well as prospective rental payments). 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
eligible for assistance if they are low-income, experiencing financial hardship due to the pandemic, and at risk of
homelessness or housing insecurity. Grantees were 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.
These parameters were changed somewhat for ERA-2. Specifically, the amount that can be spent on administrative expenses
was increased for ERA-2, and grantees may be able to use ERA-2 funds that remained unobligated as 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 availability of ERA-1
funding 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 had
flexibility in designing their ERA programs. The ability of states and localities to structure their programs differently means
that the experience of similarly situated renters seeking assistance varied geographically. Similarly, there has been geographic
variability in the degree to which existing resources—both ERA and other funds—have been adequate to meet demand for
rental assistance and the speed at which grantees have 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.
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Contents
Introduction ..................................................................................................................................... 1
Background: Rental Assistance During the COVID-19 Pandemic ................................................. 1
Initial State and Local Allocations .................................................................................................. 2
P.L. 116-260 (ERA-1) ............................................................................................................... 2
P.L. 117-2 (ERA-2) ................................................................................................................... 3
Funding Availability .................................................................................................................. 6
ERA-1 Recapture and Reallocation Process ....................................................................... 6
ERA-2 Recapture and Reallocation Process ....................................................................... 7
ERA Program Parameters ................................................................................................................ 8
Eligible Use of Funds ................................................................................................................ 8
Financial Assistance ............................................................................................................ 9
Administrative Costs and Housing Stability Services ...................................................... 10
Individual Eligibility and Prioritization .................................................................................. 10
Eligibility ........................................................................................................................... 11
Prioritization ...................................................................................................................... 11
Documentation ................................................................................................................... 11
Reporting Requirements .......................................................................................................... 12
Program Performance and Future Considerations ......................................................................... 12
Funding Distribution and Reallocation ................................................................................... 12
Program Design and Administration ....................................................................................... 16
Households Served .................................................................................................................. 18
Future of Emergency Rental Assistance .................................................................................. 19

Tables
Table 1. Emergency Rental Assistance Initial Allocations in P.L. 116-260 (ERA-1) and
P.L. 117-2 (ERA-2) ...................................................................................................................... 4
Table 2. ERA-1 Reallocation ......................................................................................................... 13
Table 3. ERA-1 Reallocation ......................................................................................................... 16
Table 4. Data on Households Served by the ERA Program .......................................................... 18

Contacts
Author Information ........................................................................................................................ 20

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Introduction
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
COVID-19 pandemic. The program received two rounds of funding.
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
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,
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
utility assistance and related housing stability services. A second appropriation for ERA—of
$21.550 billion—was included in Section 3201 of the American Rescue Plan Act of 2021 (P.L.
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,
provides information about the allocation of ERA funds, describes the parameters of the ERA
program, and concludes 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
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
numbers for lower-income (80%), Black (55%), and Hispanic (53%) renters.3
The pandemic and its economic effects made renters’ 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

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 R46990, General State and Local Fiscal
Assistance and COVID-19: Eligible Purposes, Allocations, and Use Data.
3 Joint Center for Housing Studies, America’s Rental Housing 2020, January 2020, pp. 26-29,
https://www.jchs.harvard.edu/sites/default/files/reports/files/Harvard_JCHS_Americas_Rental_Housing_2020.pdf.
4 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
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Organizations representing both tenants and landlords advocated for additional federal funds to
help tenants pay rental arrearages that had accumulated during eviction moratoriums.6 Legislation
was introduced in the 116th Congress that would have provided as much as $100 billion to help
tenants pay rent.7 Ultimately, Congress appropriated 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 support. Payments (denoted as ERA-1
payments here and in Treasury documentation) were distributed across these jurisdictions as
follows:
 $23.785 billion was allocated to eligible local governments, the 50 states, and the
District of Columbia based on their populations (as projected by the U.S. Census
Bureau for July 2020),8 with no state receiving less than $0.200 billion;9
 $0.800 billion was set aside for governments in tribal areas, with individual
government allocations distributed in proportion to relative payments made under
the Native American Housing Block Program in FY2020;10
 $0.400 billion was allocated to the territories of Puerto Rico, the U.S. Virgin
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
territories based on their relative population share; and
 $0.015 billion was set aside to cover federal administrative costs related to
program implementation.
ERA-1 payments were generally provided to state (or territorial) governments. Local
governments serving a population of at least 200,000 (as measured by the U.S. Census Bureau in
2019),11 could elect to receive their own direct allocations from Treasury. Direct payments made
to localities reduced Treasury’s initial allocation to their state government (keeping the total
amount provided across each state constant), and were the product of (1) the state or territorial

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,
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
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.
9 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, The Native American
Housing Assistance and Self-Determination Act of 1996 (NAHASDA): Background and Funding.
11 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.
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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 calculation).
P.L. 117-2 (ERA-2)
P.L. 117-2 appropriated an additional $21.550 billion in ERA support to local, state, and territorial
governments. Unlike P.L. 116-260, P.L. 117-2 did not include a separate allocation of funds for
tribal governments. Payments (denoted as ERA-2 payments here and in Treasury documentation)
were distributed across eligible jurisdictions as follows:
 $18.712 billion was allocated to eligible local governments, the 50 states, and the
District of Columbia based on their populations (as projected by the U.S. Census
Bureau for July 2020),13 with no state receiving less than $0.152 billion;
 $0.305 billion was allocated to the territories of Puerto Rico, the U.S. Virgin
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
territories based on their relative population share;
 $2.500 billion was set aside for high-need grantees, to be distributed by the
Treasury Secretary using statistics on high-need housing, rental market costs, and
unemployment (ERA-2 High Need); and
 $0.033 billion was set aside to cover federal administrative costs related to
program implementation.
Direct local allocation eligibility, calculations, and division of payments across overlapping
governments in ERA-2 were consistent with the methodology from ERA-1. However, P.L. 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 the
remainder to be distributed after grantees expended 75% of their initial ERA-2 allocation.14

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,
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
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.
14 See P.L. 117-2, §3201(c) available at https://www.congress.gov/bill/117th-congress/house-bill/1319/
text#H61B6162AB8EC496ABB590ADA8F6898FF.
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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)
(All allocations in millions of dollars)
Allocations to State
Allocations to Local

Governments
Governments

State or
Territory
ERA-1
ERA-2
ERA-1
ERA-2
Grand Total
Alabama
263
224
63
65
615
Alaska
165
125
35
27
352
American Samoa
10
9
0
0
19
Arizona
290
229
203
199
921
Arkansas
174
137
27
22
360
California
1,498
1,210
1,113
1,376
5,197
Colorado
248
196
137
138
719
Connecticut
236
222
0
0
458
Delaware
200
96
0
56
352
District of
200
152
0
0
352
Columbia
Florida
871
740
570
575
2,756
Georgia
552
479
158
159
1,348
Guam
33
29
0
0
62
Hawaii
125
95
75
71
366
Idaho
176
125
24
27
352
Il inois
566
474
268
288
1,596
Indiana
372
324
76
74
846
Iowa
195
149
15
17
376
Kansas
169
126
31
26
352
Kentucky
264
233
33
32
562
Louisiana
249
192
59
70
570
Maine
200
126
0
26
352
Maryland
258
204
143
148
754
Massachusetts
421
353
36
83
893
Michigan
623
403
38
190
1,254
Minnesota
289
229
86
84
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.
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Allocations to State
Allocations to Local

Governments
Governments

State or
Territory
ERA-1
ERA-2
ERA-1
ERA-2
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
South Dakota
200
152
0
0
352
Tennessee
383
313
73
93
862
Texas
1,308
1,080
639
660
3,686
U.S. Virgin Islands
21
18
0
0
40
Utah
150
113
65
64
392
Vermont
200
152
0
0
352
Virginia
525
396
45
113
1,079
Washington
322
278
188
190
978
West Virginia
200
152
0
0
352
Wisconsin
322
281
65
67
735
Wyoming
200
152
0
0
352
All Tribal
800
0
0
0
800
Governments
Totals
18,305
14,531
6,680
6,964
46,480
Source: U.S. Department of the Treasury, “Emergency Rental Assistance Program,” May 2021,
https://home.treasury.gov/policy-issues/cares/emergency-rental-assistance-program; and U.S. Treasury, “ERA2
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Allocations for Eligible Entities,” May 2021, https://home.treasury.gov/policy-issues/cares/emergency-rental-
assistance-program.
Notes: Recipients may choose to subgrant funds to governments within their jurisdiction, but are not obligated
to do so. Sums may not equal totals due to rounding. 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/
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
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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,
https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-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.
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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.21
ERA Program Parameters
When P.L. 116-260 created the ERA program, it established parameters for how ERA-1 funds
could and should be spent. Treasury issued Frequently Asked Questions (FAQs) regarding how
certain aspects of the law are to be applied.22 For ERA-2 funding, P.L. 117-2 made some changes
that are applicable to ERA-1 (i.e., expenditure deadlines); and others that are applicable only to
ERA-2 (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
response to stakeholder feedback.23
ERA funds are provided from Treasury to grantees, which can use the funds to design their own
rental assistance programs within the requirements of the law and Treasury guidance. Some
grantees 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 aligned with ERA statutory
requirements (which are outlined below); others had to develop new programs from scratch.
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-program/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, FAQs at https://home.treasury.gov/system/files/136/ERA-Frequently-Asked-Questions_Pub-2-22-21.pdf; March
16, 2021, FAQs at https://home.treasury.gov/system/files/136/ERA-Frequently-Asked-Questions_Pub-3-16-21.pdf;
May 7, 2021, FAQs at https://home.treasury.gov/system/files/136/ERA2FAQs%205-6-21.pdf; June 24, 2021, FAQs at
https://home.treasury.gov/system/files/136/ERA_FAQs_6-24-21.pdf; August 25, 2021, FAQs at
https://home.treasury.gov/system/files/136/ERA-FAQ-8-25-2021.pdf; 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.
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For ERA-2, P.L. 117-2 directed that no more than 15% of ERA-2 funds be spent on
administrative expenses and 10% be spent on housing stability services, leaving at least 75% to
be spent on direct financial assistance.
Financial Assistance
P.L. 116-260 defined financial assistance as assistance to tenants for
 rent and rental arrears,
 utilities and home energy costs and arrears, and
 other expenses related to housing incurred due, directly or indirectly, to the
COVID-19 outbreak, as defined by the Treasury Secretary.
The definition of financial assistance under P.L. 117-2 for ERA-2 is nearly identical, except when
it comes to other expenses related to housing; ERA-2 does not require that the expenses be related
to the COVID-19 outbreak.
Treasury issued an FAQ in January 2021 clarifying that telecommunications services are not
considered utilities under this program.24 However, Treasury revised the FAQ in February 2021 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.25
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.
Length of Assistance
Under ERA-1, assistance could be provided for no more than 12 months, with the possibility of
one 3-month extension. Payments made for prospective rent were subject to additional
limitations; they could only be provided in 3-month increments and only if rental arrearages were
addressed.
Under the terms of P.L. 117-2, recipients can receive no more than 18 months of assistance under
both rounds of ERA combined, with ERA-1 assistance still limited to no more than 15 months.
Treasury’s May 7, 2021 FAQs clarified that grantees must prohibit landlords from evicting
tenants for nonpayment of rent during the period for which they have received prospective rent
payments or for which rental arrearages were paid. 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, https://home.treasury.gov/system/files/136/ERA-Frequently-Asked-Questions_Pub-1-19-
21.pdf.
25 February 22, 2021, FAQ #7, https://home.treasury.gov/system/files/136/ERA-Frequently-Asked-Questions_Pub-2-
22-21.pdf.
26 May 7, 2021, FAQ #32, https://home.treasury.gov/system/files/136/ERA2FAQs%205-6-21.pdf.
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under ERA-1 were required to wait for landlords or utility providers to respond to outreach
efforts before making payments directly to tenants.27
ERA-1 guidance clarified that landlords 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, notifying tenants of the application, and ensuring any
funds received are applied to tenants’ rental obligations).
The requirements in P.L. 117-2 for ERA-2 are not as specific about landlord involvement, and,
according to guidance in the May 7, 2021 FAQs, grantees may use their ERA-2 funding to offer
assistance directly to tenants without first attempting to contact landlords or utility providers.28
Additionally, a revision to the FAQs issued on June 24, 2021, permitted grantees under both
ERA-1 and ERA-2 to enter into data sharing agreements and bulk payment arrangements for
large landlords and utility providers.29 The August 25, 2021, 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 requirements are met within six
months.30
The August 2021 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.31
Administrative Costs and Housing Stability Services
For ERA-1, grantees were authorized to use up to 10% of grant amounts each for housing
stability services and administrative costs.32
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
restricted administrative expenses to those tied to providing financial assistance and housing
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 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 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.
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.
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a set of income targeting requirements to guide states and localities in prioritizing assistance. P.L.
117-2 largely adopted the same requirements for ERA-2, but with some changes.
Eligibility
Under ERA-1, to be eligible for direct financial assistance or housing stability services,
households must be renters and
 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
Housing and Urban Development (HUD);
 experiencing financial hardship, as evidenced by receipt of unemployment
benefits or a written attestation of other financial hardship (income loss or
increased expenses) related directly or indirectly to the COVID-19 pandemic;
and
 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
living conditions, or other evidence as established by the grantee.
The eligibility definition for ERA-2 is largely the same, although it does not include the detail as
to how an individual can demonstrate a risk of homelessness or housing insecurity that was
included for ERA-1; nor does ERA-2 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 or during the pandemic.
Neither ERA-1 nor ERA-2 addresses noncitizen eligibility for assistance under the ERA
program.33
Prioritization
Under both ERA-1 and ERA-2, grantees are to prioritize the following individuals for direct
financial assistance and housing stability services:
 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;
and
 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.
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 provisions related to income determination for ERA-2.

33 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
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, PRWORA’s Restrictions on
Noncitizen Eligibility for Federal Public Benefits: Legal Issues.
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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
establishing documentation requirements that are likely to be barriers to participation for eligible
households.”34 For example, the FAQs say a grantee may rely on an applicant’s self-attestation of
income under certain circumstances 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.
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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.
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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%
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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).
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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, Household Rental Debt During COVID-19, Federal Reserve Bank
of Philadelphia, October 2020, https://www.philadelphiafed.org/-/media/frbp/assets/community-development/reports/
household-rental-debt-during-covid-19.pdf; and 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, https://www.ncsha.org/wp-content/uploads/Analysis-of-Current-and-Expected-Rental-Shortfall-and-
Potential-Evictions-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).
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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/emergency-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/Q1-2021-Q2-2022-ERA-Demographic-Data.xlsx. Note that Treasury indicates that some reported data may
need to be updated.
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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.
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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/.
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Author Information

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

Maggie McCarty

Specialist in Housing Policy

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
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under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in
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Congressional Research Service
R46688 · VERSION 11 · UPDATED
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