Treasury Department to Allocate Additional $21.6 Billion for Rental Assistance

In coordination with the White House’s American Rescue Plan Implementation Team and the Department of Housing and Urban Development, the Department of the Treasury announced Friday it would allot $21.6 billion in additional funds for emergency rental assistance.

Additionally, the Treasury Department issued updated guidance assuring the funds will be offered directly to renters in instances where landlords do not accept direct payment. The department’s updated guidance also reduces documentation requirements in order to expedite the payments.

“Even as the American economy continues its recovery from the devastating impact of the pandemic, millions of Americans face deep rental debt and fear evictions and loss of basic housing security,” Treasury Department officials said in a written statement accompanying the announcement. “Countless middle class landlords who rely on rental income to support their families have also faced deep financial distress in the COVID-19 crisis. Nearly 7 million Americans reported being behind on rent in the second half of April.”

At least 90% of funds issued must be used for “direct financial assistance,” such as rent, rental arrears, utilities and home energy costs, utilities and home energy costs arrears, or other housing expenses, according to the Treasury Department’s website. The remaining funds are to be used for “housing stability services,” such as case management or other services intended to maintain the household.

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The previous iteration of the Treasury Department’s emergency rental assistance program did not offer funds directly to renters, meaning tenants could face eviction if their landlord refused the federal aid on their behalf. The program also prohibits evicting renters for nonpayment in months in which they received emergency rental assistance.

“Evictions can have long-lasting consequences for families — potentially disrupting school, worsening health, displacing neighborhood networks of support, and making it more difficult to find safe, affordable housing in the future,” the Treasury Department’s statement continued. “COVID-19 has exacerbated an affordable housing crisis that predated the pandemic and that has exacerbated deep disparities that threaten the strength of an economic recovery that must work for everyone.”

In lieu of documentation requirements that might have prevented vulnerable renters from receiving assistance, the updated program will now verify the income eligibility of renters by utilizing “any reasonable fact-specific proxy,” such as the average income of the applicant’s neighborhood.

Last week, TWN reported a federal judge ruled the Centers for Disease Control and Prevention’s moratorium on evictions exceeded the agency’s authority, a decision that was quickly challenged by the Department of Justice. Prior to the ruling, the Biden administration sought to extend the moratorium through June 30.

“When our administration took office, our economy was in a state of crisis,” Treasury Secretary Janet Yellen said at a White House press conference on Friday. “Our most pressing concern was providing a lifeline for Americans suffering under the weight of the pandemic. Our solution was the American Rescue Plan, which the president signed back in March. It was designed to provide enough relief for Americans to make it to the other side of the pandemic with the foundations of their lives intact. Providing nutrition for hungry families, rental assistance for those at risk of eviction, and a lifeline for businesses on the brink.”

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POTUS WATCH

President Joe Biden will meet virtually with a bipartisan group of governors to discuss state COVID-19 vaccine programs.

Those attending include Janet Mills (Maine), Mike DeWine (Ohio), Spencer Cox (Utah), Tim Walz (Minnesota), Charlie Baker (Massachusetts), and Michelle Lujan Grisham (New Mexico).

Vice President Kamala Harris will hold a late afternoon meeting with members of the congressional Asian Pacific American Caucus at the White House.

IN OTHER NEWS

Pfizer's COVID-19 Vaccine Use Expands to Children

U.S. regulators have expanded the use of Pfizer's COVID-19 vaccine to children as young as 12, offering a way to protect the nation's adolescents before they head back to school in the fall and paving the way for them to return to more normal activities.

Shots could begin as soon as Thursday, after a federal vaccine advisory committee issues recommendations for using the two-dose vaccine in 12- to 15-year-olds. An announcement is expected Wednesday.

Pfizer’s vaccine is being used in multiple countries for teens as young as 16, and Canada recently became the first to expand use to 12 and up.

Virginia GOP Picks Newcomer for Governor Race

Glenn Youngkin, a political novice, bested a field of seven candidates to emerge as Virginia Republicans’ nominee for governor.

The conservative, who tacitly embraced Trump's “election integrity” as his top issue, will now top the state ticket in a year when the GOP hopes to end a 12-year losing streak in statewide races.

Youngkin defeated a hard-right contender in state Sen. Amanda Chase, who closely aligned herself with former President Donald Trump, as well as an establishment candidate, former House Speaker Kirk Cox, who had more than 30 years’ experience in government as well as the endorsements of former governors George Allen and Bob McDonnell.

It took six rounds of voting and counting to finally choose the party’s nominee.

Youngkin passed the 50% threshold to clinch the nomination Monday night, and his closest remaining opponent, Pete Snyder, issued a tweet conceding the race almost immediately.

In a tweet of his own, Youngkin said, “I am prepared to lead, excited to serve and profoundly humbled by the trust the people have placed in me.

“Virginians have made it clear that they are ready for a political outsider with proven business experience to bring real change in Richmond,” he added.

California Expands Drought Emergency to Large Swath of State

California Gov. Gavin Newsom expanded a drought emergency while seeking more than $6 billion in multiyear water spending as one of the warmest, driest springs on record threatens another severe wildfire season across the American West.

The Democratic governor said he is acting amid “acute water supply shortages" in northern and central parts of California as he called again for voluntary conservation. Yet the state is in relatively better shape than it was when the last five-year drought ended in 2017, he said, as good habits have led to a 16% reduction in water usage.

His emergency declaration now includes 41 of 58 counties, covering 30% of California's nearly 40 million people, and he said a further expansion is likely as conditions worsen. The U.S. Drought Monitor shows most of the state and the American West is in extensive drought.

It Was 40 Years Ago Today …

… that reggae superstar Bob Marley died. He was only 36.

Marley was admitted to Memorial Sloan Kettering hospital shortly after playing a concert in New York City.

“Of course, from there the story developed that he had brain cancer and he died a few months later,” said Andy Fisher, the reporter who who broke the story of Marley's illness.

The singer-songwriter, who was given a state funeral in his native Jamaica, is credited with popularizing reggae beyond its original Caribbean roots.

He started his career as guitarist and singer with The Wailers before going on to greater success as Bob Marley & The Wailers in 1974, with hits including 'I Shot the Sheriff', 'No Woman, No Cry', 'Could You Be Loved', 'Jamming', 'Redemption Song', and 'One Love'.

His 1977 album 'Exodus', recorded in London while Marley was in exile following a failed assassination attempt in Kingston, Jamaica, was named the best album of the 20th century by TIME magazine in 1999.

UK's Queen's Speech at State Opening of Parliament

Queen Elizabeth will deliver her annual speech today announcing the opening of Parliament. The event, held in the House of Lords, is the ceremonial centerpiece of the start of the new parliamentary session and is used to announce the government’s legislative program.

Members are traditionally summoned to the House of Lords by Black Rod, but only after the doors of the House of Commons are slammed in their face to symbolize the chamber's independence from the monarch.

Prime Minister Boris Johnson and Labour Party leader Keir Starmer are expected to walk side-by-side to lead the procession.