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Ex-PepsiCo CEO Indra Nooyi worked from midnight until 5 a.m. as a receptionist to pay for her Yale degree—and she says ‘respect went up’ because of it

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Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI

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China’s birth rate just hit its lowest point since 1949—and Trip.com cofounder James Liang thinks that’s a threat to innovation

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Ex-PepsiCo CEO Indra Nooyi worked from midnight until 5 a.m. as a receptionist to pay for her Yale degree—and she says ‘respect went up’ because of it

2

Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI

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China’s birth rate just hit its lowest point since 1949—and Trip.com cofounder James Liang thinks that’s a threat to innovation
Finance

With distributions lagging, Treasury Department makes it easier for people to get rental assistance

By
Chris Morris
Chris Morris
Former Contributing Writer
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By
Chris Morris
Chris Morris
Former Contributing Writer
Down Arrow Button Icon
August 25, 2021, 6:00 PM ET
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The Treasury Department’s fund for renters facing possible eviction due to the pandemic has distributed just 11% of the available funds to date. So the government is taking steps to make it easier for states to get cash to people in distress.

The Treasury Department, on Wednesday, announced a series of new policies that it hopes will expedite distribution of Emergency Rental Assistance (ERA) funds. This follows news that total disbursements have hit $5.1 billion, a drop in the bucket of the $46.5 billion rental aid program.

As of July 31, there have been roughly 1 million payments to people at risk of eviction. July alone saw 340,000, breaking June’s record. Hundreds of thousands of applications are still backlogged, putting strain on both tenants and landlords.

“Too many grantees have yet to demonstrate sufficient progress in getting assistance to struggling tenants and landlords,” the department said in a statement. “After September, programs that are unwilling or unable to deliver assistance quickly will be at risk of having their rental assistance funding reallocated to effective programs in other high-need areas.”

Applicants can now self-attest to financial hardship, risk of homelessness, and income shortfalls without having to immediately supply other forms of documentation. That alone could clear up one of the biggest logjams but could also increase potential fraud. The White House maintains that the fraud risk is minimal compared to the wave of evictions that could be looming.

State and local governments can also now advance financial assistance to landlords and utility companies—and can work with nonprofits to deliver assistance to households at risk, even while their applications are being processed.

Emergency funds can now be used to pay outstanding debt as people search for new housing, too. And they can be used to cover court hearings or eviction appeals tied to their rental troubles.

The Biden administration is rushing to distribute the funds as it fears the current eviction moratorium could be struck down at any time.

More politics coverage from Fortune:

  • The true cost of the 20-year war in Afghanistan, in 5 charts
  • What a Taliban-controlled Afghanistan means for the rest of the world
  • Is “Big Day Care” the solution to America’s childcare woes—or is it risky to mix profits and toddlers?
  • Commentary: The infrastructure bill shows why Congress must stop enabling bad behavior by cities and states
  • The politics behind President Biden’s plan to lower prescription drug prices

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About the Author
By Chris MorrisFormer Contributing Writer

Chris Morris is a former contributing writer at Fortune, covering everything from general business news to the video game and theme park industries.

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