According to data released by the U.S. Department of Treasury (Treasury) on November 29, state and local governments distributed almost $2.8 billion in Emergency Rental Assistance (ERA) program funds to over 510,000 households in October, level with the assistance provided in September. The ERA program provides direct funding to states and eligible units of local government, including counties with populations of over 200,000, to assist families struggling to make rental and utility payments due to the COVID-19 pandemic. As of October 31, state and local ERA grantees have distributed nearly $13.6 billion in emergency rental assistance through 2.5 million payments to households across the country. Counties are working diligently at the local level to successfully implement the ERA program and keep our residents safely and stably housed through the pandemic and beyond.

The ERA program was established by the Consolidated Appropriations Act of 2021, which provided $25 billion for the first round of the program, known as ERA1. The American Rescue Plan Act (ARPA) provided $21.6 billion for an additional round of the program, known as ERA2, including $2.5 billion in targeted assistance to the highest need areas.

Based on the October data, Treasury currently estimates that between $25 and $30 billion of combined ERA1 and ERA2 funds will be spent or obligated before the end of the year. Further, Treasury currently anticipates that at least 80 percent of ERA1 funding will be spent or obligated before the end of the year, nine months ahead of the ERA1 spending deadline.

The release of the October data also comes as Treasury continues the process of recapturing and reallocating “excess” ERA1 funds, as required by the Consolidated Appropriations Act of 2021. Treasury currently expects most of the first round of reallocation to happen voluntarily, and recently published a template letter for requesting voluntary reallocation. Further, given the current pace of obligations and expenditures, Treasury expects only a limited amount of funds to be available for reallocation. 

NACo will continue to monitor and advocate for county priorities as the ERA program continues. For more information, please visit NACo’s ERA Resource Hub.