The Metro Council Committee on Budget and Finance determined on Monday that a rental assistance program, created with federal funding sent to help Americans avoid eviction during the COVID-19 pandemic, will come to an end on June 30, as the result of steps by the U.S. Department of Government Efficiency to cut wasteful spending.
Explaining that DOGE recommended the U.S. Department of the Treasury (USDT) terminate its Emergency Rental Assistance program, which has doled out tens of billions since it was authorized in 2021, the Metro Council urged residents in need of assistance to contact the Metropolitan Action Commission (MAC) prior to June 30.
“This allows families to keep their homes,” MAC Interim Executive Director Oluwadamilola Dairo said, according to Fox 17 Nashville. Dairo added that workers are now attempting to “help as many families as possible before the program shuts down.”
While the MAC received more than $2 million in ERA funding from the federal government since 2023, MAC told the Budget and Finance Committee that it expects to receive just over $200,000 to help wind down its operations in the city. It also requested an additional $350,000 from the Tennessee Housing and Development Authority (THDA), which oversees the rental assistance program in Tennessee.
According to THDA, various agencies across Tennessee were given the option to determine which housing-related costs are covered through the rental assistance program, with options including help paying rent, back rent, prospective rent, late fees, security, deposits, or fees related to utilities, including deposits, disconnection, and reconnection fees.
It also allowed the money to go toward legal services for tenants facing eviction, or mediation costs to reach amicable solutions with landlords. Should such efforts fail, the money could also be used for relocation costs and rental application fees, as well as budgeting or financial counseling.
The federal funding for the rental assistance program were made available through legislation championed by former President Joe Biden, specifically through a 2021 spending bill that authorized about $25 billion, and the American Rescue Plan Act of 2021, which authorized another $21.55 billion to help Americans pay their rent.
DOGE’s cuts to the rental assistance program come even as the advisory committee’s progress is beleaguered by tenuous support from the Republican-led Congress, leading Elon Musk to reduce its savings forecast by 85 percent last month.
Tom Pappert is the lead reporter for The Tennessee Star, and also reports for The Pennsylvania Daily Star and The Arizona Sun Times. Follow Tom on X/Twitter. Email tips to pappert.tom@proton.me.