Emergency Rental Assistance Program

Emergency Rental Assistance (ERA 1) Program and Emergency Rental Assistance (ERA 2) Program
CFDA 21.023 Active Direct Payment (Specified Use)
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Funded Projects

Examples of what this program has supported.

FY2025 ERA1 deployed $23.6 billion to provide 8 million payments to over 3 million households. As of January 2025, all ERA1 recipients closed out of the program and over $900 million was recovered from unobligated funds and improper payments. The end of period of performance for ERA2 was September 30, 2025 so Treasury has begun the closeout process. This is done to ensure recipients were compliant with all terms and conditions of the ERA2 program, account for all funds and property, and demonstrate that recipients have been responsible stewards of the funds and has met all legal and regulatory requirements. As of December 2025, over 100 final reports have been received by Treasury and over $60 million has been recovered from unobligated funds and improper payments. In 2025, Treasury initiated desk reviews of the ERA program with the key objectives of confirming proper use of ERA funds, ensuring adherence to ERA award requirements, verifying accuracy of information reported to Treasury and essentially ascertain whether the recipients were effective stewards of taxpayers funds. As of December 2025, Treasury has issued close to $1 million in monetary findings as a result of improper payments.

Program Objective

The funding provided by Emergency Rental Assistance (ERA) will among other things, assist eligible households that have difficulty making timely payments of rent and utilities due to the COVID-19 pandemic. Division N, Title V, Section 501 of the Consolidated Appropriations Act, 2021, CAA Pub. L. No. 116-260, (December 27, 2020) established the Emergency Rental Assistance (“ERA 1”) and provided $25 billion for the U.S. Department of the Treasury (Treasury) to make payments to States (defined to include the District of Columbia), U.S. Territories (Puerto Rico, U.S. Virgin Islands, Guam, Northern Mariana Islands, and American Samoa), Indian Tribes or their Tribally designated housing entities, as applicable, the Department of Hawaiian Home Lands (DHHL), and certain local governments with more than 200,000 residents (collectively the “eligible grantees”) to provide financial assistance including payment of rent, rental arrears, utilities and home energy costs, utilities and home energy costs arrears, other costs related to housing, and housing stability services to eligible households.
The authorizing statute instructed Treasury to make direct payments to the eligible grantees no later than 30 days after December 27, 2020. ERA1 ended in December 2022 as the period of performance for the initial allocation of ERA1 awards expired on September 30, 2022, and for reallocated funds expired on December 29, 2022.

Title III, Subtitle B, Section 3201 of the American Rescue Plan Act, 2021, (ARPA), Pub. L. No. 117-2, (March 11, 2021) authorized the Emergency Rental Assistance (“ERA 2”) and provides $21.55 billion for Treasury to make payments to States (defined to include the District of Columbia), U.S. Territories (Puerto Rico, U.S. Virgin Islands, Guam, Northern Mariana Islands, and American Samoa), and certain local governments with more than 200,000 residents (collectively the “eligible grantees”) to provide financial assistance including payment of rent, rental arrears, utilities and home energy costs, utilities and home energy costs arrears, other costs related to housing, and housing stability services to eligible households, as well as to cover the cost of other affordable rental housing and eviction prevention activities, as defined by the Secretary, serving very low-income families. ERA 2’s authorizing statute provided for Treasury to pay all ERA 2 eligible grantees at least 40% of each grantee’s total allocations within 60 days after March 11, 2021, pursuant to section 3201(c) (1) of ARPA. ERA2 is ongoing as the period of performance on ERA2 awards end on September 30, 2025.
No new awards are being made but existing projects are still active.

Eligibility

Eligible Applicants

  • State
  • Territorial
  • Local
  • Tribal

ERA 1: States (including the District of Columbia), U.S. Territories (Puerto Rico, U.S. Virgin Islands, Guam, Northern Mariana Islands, and American Samoa), certain local governments with more than 200,000 residents, the Department of Hawaiian Home Lands (DHHL), and Indian tribes or their Tribally designated housing entities, as applicable are eligible grantees under ERA1, as described in section 501(k)(2) of the CAA. Units of local government eligible for payment directly include a county, municipality, town, township, village, parish, borough, or other unit of general government below the state level with a population that exceeds 200,000. ERA 2: Section 3201(f)(1) of ARPA provides that eligible grantees for funding under ERA 2 are States (defined to include the District of Columbia), U.S. Territories (Puerto Rico, U.S. Virgin Islands, Guam, Northern Mariana Islands, and American Samoa), and certain local governments with more than 200,000 residents.

Beneficiaries

  • Other

ERA 1: Eligible grantees may use funds to provide financial assistance including payment of rent, rental arrears, utilities and home energy costs, utilities and home energy costs arrears, other costs related to housing, and housing stability services for eligible households. Eligible households may apply directly for the assistance and a landlord or utility company may apply for assistance on behalf of the eligible household. See the ERA FAQs for more information at https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/emergency-rental-assistance-program. ERA 2: Eligible grantees may use ERA 2 funds to provide financial assistance including payment of rent, rental arrears, utilities and home energy costs, utilities and home energy costs arrears, other costs related to housing, housing stability services for eligible households, and to cover the cost of other affordable rental housing and eviction prevention activities, as defined by the Secretary, serving very low-income families. Eligible households may apply directly for the assistance and a landlord or utility company may apply for assistance on behalf of the eligible household. See the ERA FAQs for more information at https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/emergency-rental-assistance-program.

How to Apply

Award Procedure

Not applicable; No new awards will be made in FY 2026.

Not applicable; No new awards will be made in FY 2026.

Program details & compliance

Description

ERA 1 provided $25 billion for direct payments to eligible grantees, with $400 million reserved for U.S. Territories; $800 million reserved for the DHHL and Indian Tribes, or their Tribally designated housing entities, as applicable; and $23.785 billion allocated to the 50 States, the District of Columbia, and eligible local governments. Each State and the District of Columbia received a minimum payment no less than $200 million for fiscal year 2021. The period of performance for ERA1 awards ended on September 30, 2022 for ERA1 grantees that recieved the initial allocation and for ERA1 grantees that received reallocated funds, the period of performance ended on December 29, 2022. ERA 2 provides $21.55 billion for direct payments to ERA 2 eligible grantees, with $305 million reserved for U.S. Territories and approximately $21 billion allocated to the 50 States, the District of Columbia, and certain local governments with more than 200,000 residents. Each State and the District of Columbia shall receive a minimum payment no less than $152 million. Amounts paid to States and the District of Columbia are based on the 2020 population estimates. Amounts paid to eligible local governments are based on the 2019 population estimates of the relative local government population share of the state population. Payments to States are subject to reduction based on payments made to eligible local governments. Local governments are eligible to receive direct payment if they are a county, municipality, town, township, village, parish, borough, or other unit of general government below the state level with a population that exceeds 200,000 residents. The period of performance for ERA2 awards ended on September 30, 2025.

Mission Categories

Primary: Emergency and Crisis Assistance

Use of Funds

Allowed Uses

ERA 1: Eligible grantees may use ERA1 award funds to provide financial assistance, including payment of rent, rental arrears, utilities and home energy costs, utilities and home energy costs arrears, other costs related to housing, and housing stability services for eligible households. See the ERA FAQs for more information on eligible uses at https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/emergency-rental-assistance-program ERA 2: ERA 2 eligible grantees may use ERA2 award funds to provide financial assistance including payment of rent, rental arrears, utilities and home energy costs, utilities and home energy costs arrears, other costs related to housing, housing stability services for eligible households, and to cover the cost of other affordable rental housing and eviction prevention activities, as defined by the Secretary, serving very low-income families.

Required Documentation

Not Applicable. No new awards will be made in FY 2025.

Reporting & Compliance

Audit Required
Yes — Annual
Records Retention
5 years

Applicable 2 CFR 200 Subparts

  • Subpart B — General Provisions
  • Subpart C — Pre-Federal Award Requirements
  • Subpart D — Post-Federal Award Requirements
  • Subpart E — Cost Principles
  • Subpart F — Audit Requirements

Contacts

Emergency Rental Assistance
(202) 622-2000
United States Department of the Treasury 1500 Pennsylvania Avenue NW, Washington, DC 20220
Data from SAM.gov Federal Assistance Listings. Source published: 2026-01-19. Spec v2.0. Last synced: 2026-05-29 05:43:17.