Article Summary –
A report from the Treasury Department reveals that the American Rescue Plan, created in response to the economic impact of the COVID-19 pandemic, helped over 500,000 families avoid home foreclosure. The legislation funded the Homeowner Assistance Fund, contributing over $9.4 billion to assist homeowners with mortgage payments, insurance costs, and utility bills. The Treasury report, which used data collected through December 2023, found that 77% of the original funds have been used and 22 states and two U.S. territories have used all of the funds allocated to them.
Treasury Department’s Report on American Rescue Plan’s Impact
A report from the Treasury Department, released March 19, discloses how the American Rescue Plan helped over 500,000 families avoid home foreclosure as a response to the economic impact of COVID-19.
President Joe Biden introduced the Rescue Plan in his initial year in office, creating the Homeowner Assistance Fund. The Fund issued over $9.4 billion to states, aiding homeowners with mortgage payments, insurance costs, and utility bills. The initiative followed the expiration of mortgage payment suspension and foreclosure moratorium under the CARES Act. Learn more about the CARES Act.
“This Administration contributed to preventing foreclosures and boosting housing stability nationwide,” Deputy Treasury Secretary Wally Adeyemo stated.
By December 2023, the Treasury report documented that 77% of the initial funds were utilized by recipients with 22 states and two U.S. territories exhausting their available funds.
In Pennsylvania, over 15,000 homeowners received more than $350 million in assistance administered by the Pennsylvania Housing Finance Agency. Then-Gov. Tom Wolf launched the initiative.
The Rescue Plan was passed solely with Democratic votes despite opposition from Congressional Republicans. Vice President Kamala Harris cast the tiebreaking vote in the Senate.
“This historic legislation bolsters the backbone of this country by giving working and middle-class people a fighting chance,” Biden said.
In his State of the Union speech, Biden advocated for further homeowner help and urged Congress to pass legislation providing tax credits for first-time homeowners and down payment assistance to first-generation homebuyers, aiming to increase housing supply and reduce housing costs.
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