Emergency Rental Assistance was a federal program that distributed about $42.8 billion during and after the COVID-19 pandemic to help lower-income renters cover unpaid rent, utilities, and related housing costs. Households earning up to 80% of their area’s median income could qualify if they showed a risk of housing instability and a pandemic-related financial hardship. The federal program has since closed: ERA2 funds could no longer be used to assist renters after September 30, 2025, and ERA1 has also completed its closeout.1U.S. Department of the Treasury. ERA2 Closeout Resource2U.S. Department of the Treasury. ERA1 Closeout
Congress funded the program through two laws: the Consolidated Appropriations Act of 2021 ($25 billion) and the American Rescue Plan Act of 2021 ($21.55 billion). Together they made roughly 16 million payments to more than 3 million households before winding down.3U.S. Department of the Treasury. Emergency Rental Assistance Program
Who Qualified
A household had to meet three requirements:
- Total household income at or below 80% of the Area Median Income for its region.
- At least one household member at risk of homelessness or housing instability, typically shown through an eviction notice, a utility disconnection warning, or similar evidence.
- At least one household member who had experienced a qualifying financial hardship, such as lost income, reduced hours, or significant unexpected costs tied to the pandemic.
The statute required programs to prioritize two groups above other applicants: households earning at or below 50% of the area median income, and households with at least one member unemployed for 90 days or more at the time of application. Those priority tiers were written into the law, not left to local discretion, so the lowest-income applicants and the long-term unemployed moved to the front of the line when funds were tight.4U.S. Department of the Treasury. ERA1 Program Statute Section 501
The program was for renters. Homeowners were not eligible, because the funding specifically targeted tenant-landlord obligations.3U.S. Department of the Treasury. Emergency Rental Assistance Program
What ERA Paid For
Eligible expenses included current rent, past-due rent, utility bills, and home energy costs. Utilities covered electricity, gas, water and sewer, trash removal, and fuel oil. Some programs also covered internet service as an “other expense,” reflecting how essential connectivity had become during the pandemic. Late fees and reasonable moving costs qualified when tied to documented housing needs.5ACF (Administration for Children and Families). An Overview of Emergency Rental Assistance
Most programs cleared arrears first, since back rent carried the most immediate eviction risk, and only paid forward rent after a household’s debt to the landlord had been addressed.3U.S. Department of the Treasury. Emergency Rental Assistance Program
Under ERA1, a household could receive up to 12 months of rent and utility assistance, extendable to 15 months if needed for housing stability. ERA2 allowed additional months, but combined assistance from both programs could not exceed 18 months per household. State and local programs sometimes set their own tighter caps depending on demand and available funds, so the 18-month figure was a federal ceiling rather than a guarantee.6U.S. Department of the Treasury. Emergency Rental Assistance Program Guidance FAQs
How Applications Worked
Most programs used an online portal run by the state or local agency administering funds. Applicants without internet access could usually mail paperwork or visit a local housing authority office. Review commonly took two to six weeks while administrators verified documents and contacted the landlord or utility company to confirm the debt. Payments typically went directly to the landlord or utility provider, which reduced the risk that funds would end up somewhere other than the housing costs they were meant to cover.
Applicants generally needed a government-issued photo ID, a signed lease, income verification for all adult household members (pay stubs, W-2s, tax returns, or bank statements), and proof of the amounts owed, such as a rent ledger or unpaid utility bills.
When Documents Were Missing
Treasury recognized that many applicants had lost jobs, worked for cash, or lacked access to standard records. Programs were allowed to accept a signed self-certification about household income when normal documentation was unavailable, and statements from employers, landlords, or caseworkers could also substitute. When a household relied on self-certification alone for income, the program was expected to reassess that income every three months. Treasury pressed programs not to set documentation bars so high that they blocked the people the program was meant to help.7U.S. Department of the Treasury. Emergency Rental Assistance Frequently Asked Questions
For the financial hardship requirement, Treasury encouraged programs to rely on a simple signed attestation from the applicant rather than demanding extensive proof.
Landlord Participation and Eviction Protection
When a landlord accepted ERA funds, the program had to prohibit that landlord from evicting the tenant for nonpayment during the period the assistance covered. Treasury also encouraged programs to extend eviction protection for an additional 30 to 90 days beyond the covered period.8U.S. Department of the Treasury. Emergency Rental Assistance Frequently Asked Questions (Revised March 5, 2024)
Some landlords refused to participate. When that happened, programs could pay the tenant directly. ERA1 required programs to make reasonable outreach to the landlord first; ERA2 dropped that step and let direct-to-tenant payment proceed without it. Tenants who received direct payments were expected to apply the funds to the specified housing costs.7U.S. Department of the Treasury. Emergency Rental Assistance Frequently Asked Questions
Tax Treatment
ERA payments were not taxable income for tenants. It did not matter whether the money went directly to a landlord or utility company on your behalf or came to you as a direct payment. Landlords, on the other hand, had to treat ERA rent payments as taxable income, the same as any other rent, and report those amounts on the return for the year the funds were received.9Internal Revenue Service. Emergency Rental Assistance Frequently Asked Questions
Where to Turn Now
The federal ERA program is no longer accepting new applicants, so a renter facing eviction in 2026 will not find help through that channel. Some state and local governments launched their own rental assistance programs with separate funding, and some of those remain active. Dialing 211, the national helpline operated by United Way, connects callers with local housing assistance, utility aid, and eviction prevention services. Your local housing authority or community action agency can also point you to programs currently operating in your area.