- Only $1.5 billion of $46 billion in rental aid from Biden's stimulus has reached tenants so far.
- The eviction ban expires at the end of July, and 1.2 million households are likely to be evicted.
- A Treasury blog stressed the importance of ramping up aid to help the millions of households behind on rent.
- See more stories on Insider's business page.
Along with an eviction-ban extension, President Joe Biden's stimulus allocated nearly $50 billion in emergency rental aid to those struggling to pay rent during the pandemic.
Treasury data released last week found that of the $46 billion in emergency rental aid from Biden's stimulus, only $1.5 billion had been disbursed as of May, helping only 350,000 families that were behind on rent.
Even though the rate of disbursement increased by 60% from April to May, helping 160,000 households, the pace of aid delivery remains well behind what it should be. So much so, in fact, that 1.2 million households reported to the Census that they are likely to face eviction next month.
"Money is available in every state to help renters at risk of eviction – and the urgency has never been greater," the Treasury wrote in a blog post. "The Administration is calling for an all-hands-on-deck effort by state and local governments, courts, community organizations, and the legal community to prevent evictions, including moving more quickly to get emergency rental assistance to families in need."
The blog post highlighted four key findings based on data from the rental assistance program:
- "Rapid expansion" of aid is needed to help renters facing eviction, with over 80 state and local governments not spending on household assistance through May 31;
- Rental assistance programs have disproportionately served the lowest-income households;
- Disbursement of aid varies greatly across state and local programs, with some lagging far behind;
- And governments with rental assistance programs prior to the stimulus have been able to disburse funds easier than states without prior programs.
Since Biden signed his stimulus plan into law in March, there have been issues getting the rental aid to tenants who needed it. Insider reported in April that the Treasury was struggling to get out aid fast enough given that a growing number of courts were ruling the Centers for Disease Control and Prevention's (CDC) eviction ban unconstitutional, putting millions at risk of eviction without needed financial aid.
Even though Biden extended the eviction moratorium by one more month, through July, 6 million tenants are still behind on their rent, according to a Census Bureau survey. Given how long it is taking for aid to reach tenants, whether the entirety of Biden's stimulus aid will reach them before the eviction ban expires is uncertain.
"Since the start of the Administration, Treasury has taken bold action to give state and local governments the tools and flexibility needed to scale up programs quickly," the blog post said. "Treasury will continue to work with grantees and use every tool available to get this aid into the hands of families at risk of eviction, including reallocating additional funds to grantees that demonstrate results."