During the COVID-19 pandemic, the U.S. government, alongside state governments, implemented various relief programs to help individuals, families, and businesses navigate financial hardships. Here are the top seven state-level pandemic relief programs you need to be aware of:
1. Emergency Rental Assistance Program (ERA)
The Emergency Rental Assistance Program was established to assist renters who were struggling to pay rent or utilities due to the pandemic. This program, administered by the U.S. Department of the Treasury, was divided into two phases: ERA1 and ERA2.
- ERA1: Authorized by the Consolidated Appropriations Act, 2021, provided $25 billion for rent and utility assistance.
- ERA2: Part of the American Rescue Plan Act of 2021, allocated an additional $21.55 billion.
Both phases aimed to prevent evictions and ensure housing stability for vulnerable households. The funds were distributed to states, local governments, and territories, with specific allocations for Tribal governments (U.S. Department of the Treasury) (U.S. Department of the Treasury).
2. Coronavirus Relief Fund (CRF)
The CRF, established under the CARES Act, allocated $150 billion to states, local, and Tribal governments to cover expenses related to the COVID-19 pandemic.
The funds were meant to address public health emergencies and cover costs that were unforeseen and unbudgeted as of March 2020.
States and localities used these funds to support healthcare, essential services, and economic recovery initiatives (U.S. Department of the Treasury) (U.S. Department of the Treasury).
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3. State and Local Fiscal Recovery Funds (SLFRF)
Part of the American Rescue Plan Act, the SLFRF provided $350 billion to states, territories, and local governments. The funds were used to:
- Support public health responses.
- Replace lost public sector revenue.
- Provide premium pay for essential workers.
- Invest in infrastructure such as water, sewer, and broadband.
Governments had until December 31, 2024, to obligate these funds and until December 31, 2026, to spend them (U.S. GAO) (U.S. Department of the Treasury).
4. Homeowner Assistance Fund (HAF)
The HAF was designed to prevent mortgage delinquencies and defaults, foreclosures, loss of utilities or home energy services, and displacements of homeowners experiencing financial hardship after January 21, 2020.
The program provided $9.961 billion for states, U.S. territories, and Tribes to assist eligible homeowners (U.S. Department of the Treasury).
5. State Small Business Credit Initiative (SSBCI)
The SSBCI was renewed and expanded under the American Rescue Plan Act, allocating $10 billion to support small businesses. The funds were directed toward:
- Increasing capital for small businesses.
- Providing loan guarantees.
- Offering venture capital programs.
This initiative aimed to provide crucial support to small businesses struggling due to the pandemic, particularly those owned by socially and economically disadvantaged individuals (U.S. Department of the Treasury).
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6. Low-Income Home Energy Assistance Program (LIHEAP)
LIHEAP was expanded during the pandemic to help low-income households cover heating and cooling energy costs. States received additional funding to support families in need, ensuring they could maintain utility services during challenging economic times (iPropertyManagement.com).
7. Pandemic Electronic Benefit Transfer (P-EBT)
P-EBT was introduced to provide nutritional assistance to families with children who would have received free or reduced-price meals if schools were open. This program was crucial in combating food insecurity during school closures.
States administered P-EBT benefits through their existing SNAP (Supplemental Nutrition Assistance Program) infrastructure (U.S. Department of the Treasury).
Conclusion
These state-level programs were vital in providing financial relief and stability to millions of Americans during the pandemic. While some programs, like ERA and CRF, were temporary responses to immediate needs, others, like SSBCI and SLFRF, aimed to foster long-term economic recovery and resilience. For more detailed information about these programs, visit the official U.S. Department of the Treasury’s website at home.treasury.gov (U.S. Department of the Treasury) (U.S. GAO) (U.S. Department of the Treasury).
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