Treasury Releases More ERA Funding to High-Performing State and Local Governments
The Treasury Department is releasing the remainder of the American Rescue Plan's Emergency Rental Assistance (ERA) funding—more than $13 billion—to state and local governments that have successfully distributed the majority of their ERA to struggling renters and landlords.
The Consolidated Appropriations Act of 2021 provided $25 billion for emergency rental assistance (ERA1), and the American Rescue Plan provided $21 billion for ERA2.
In the same announcement, the department reiterated a warning for state and local governments that are slow to deliver this assistance, which can be used to pay rent, utilities, and other housing costs:
“While Treasury’s strong preference is for each jurisdiction to have the opportunity to use the full amount of its original ERA allocation, the department is prepared to reallocate funds from state and local programs that are not quickly dispersing funds to programs that are effectively getting funds out the door,” the department stated in a press release. “The ERA1 statute requires Treasury to begin identifying excess funds that have not been obligated by a state or other grantee and reallocating those resources to high-performing jurisdictions that have obligated at least 65% of their original allocation. This process will make it possible for the highest-performing jurisdictions – like those who are drawing down on their full ERA2 funding – to access additional resources so they can continue serving tenants and landlords in need. Treasury will share more details on the reallocation process in the coming weeks, including the spending threshold grantees must meet to avoid having their funds reallocated to more successful programs.”
The department cited examples of grantees that have already or are expected to soon qualify to receive their remaining ERA2 funds:
- Island of Oahu: City and County of Honolulu and Department of Hawaiian Home Lands
- City of Des Moines and Polk County, Iowa
- City of Houston and Harris County, Texas
- Leon County, Florida
- New Orleans
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