Battle heats up over remaining federal rental assistance

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Battle heats up over remaining federal rental assistance
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Battle heats up over remaining federal rental assistance

States and localities have until September to spend their share of the first $25 billion allocated, known as ERA1, and the second $21.55 billion, known as ERA2, by 2025. So far, Treasury says $30 billion has been spent or allocated through February.that over $1 billion of ERA1 funds would be moved, for a total of $2.3 billion reallocated this year. Larger states like California, New York, New Jersey and Texas are getting hundreds of millions of dollars in additional money.

South Dakota was forced to return more than $81 million — though more than $9 million went to Native American tribes in the state. Gov. Kristi Noem suggested the money was not necessary, adding:"Our renters enjoy something even better than government hand-outs: a job.” Several states argued the reallocation addresses a flaw in the program, which created a funding formula based on population, not the number of renters in a state.

But housing advocates say his decision will leave many vulnerable tenants without a lifeline. Tenants in rural areas often have access to fewer resources, including affordable housing, internet access and reliable transport.

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