States and localities have so far distributed only 11% of the tens of billions in federal rent assistance, the Treasury Department reported Wednesday.
The latest data shows that the pace of distribution increased in July compared to June and that almost a million households across the country have been helped, but the figure is still too low.
While the Supreme Court deems the federal moratorium on evictions a challenge, fears of a wave of evictions are mounting before much of the assistance has been distributed. As of Aug. 16, some 3.5 million Americans said they will face eviction in the next two months, according to the Census Bureau’s Household Pulse Survey.
Lawmakers approved $ 46.5 billion in rental assistance earlier this year and most states are distributing the first tranche of $ 25 billion. According to the Treasury Department, states and localities have distributed $ 5.1 billion in emergency rental assistance through July, up from $ 3 billion at the end of June and just $ 1.5 billion as of May 31.
Several states, including Virginia and Texas, have been praised for moving quickly to allocate the funds. But many others have only distributed a small percentage of the rental assistance, including New York and New Jersey.
Housing advocates blame the slow rollout in part on the Treasury Department under President Donald Trump. According to critics, the former president was slow to explain how the money could be spent. The criteria, while clearer under Biden’s administration, were still criticized for a cumbersome process that seemed more focused on preventing fraud than helping tenants.
Advocates also said states made things worse: some waited months to establish programs and others created bureaucratic hurdles.
The Treasury Department has repeatedly modified its guidance to encourage state and local governments to expedite the distribution of funds. The Biden administration has also asked states to create programs that prevent eviction before they go to court.
On Wednesday, the Treasury released additional guidance to try to speed up the process. This includes programs that allow tenants to self-assess their income and risk of homelessness, among other criteria. Many states and localities, fearing fraud, have implemented measures that can take weeks to verify that an applicant qualifies for assistance.
The Treasury also said states and localities can now distribute money in advance to landlords and utility providers “in anticipation of full satisfaction of the application and documentation requirement.” And they approved to provide money to tenants who have outstanding rent debts in collection, which would make the task of finding a new home easier.
The administration also announced measures aimed at preventing evictions from federally backed housing, including 400,000 rental units in multi-family properties backed by the Department of Agriculture. It also offers additional rental assistance to at-risk veterans and their families and works to ensure that public housing tenants can access rental assistance.
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