WASHINGTON, (Reuters) – U.S. Treasury officials have asked municipalities to use part of the $350 billion they receive in COVID-19 state and local aid in order to assist renters in need. This is because Emergency Rental Assistance funds are running low this summer.

According to the Treasury, Wednesday’s $46.6 billion program for preventing evictions was repaid or obligated to more than $30 Billion to tenants and landlords by February 31st. The Treasury stated that it is close to exhausting the remaining funding before mid-year.

It was started in January 2021. The first few months were difficult because the communities had not built infrastructure to support renters and prevent them from being evicted.

The Treasury stated that some states, localities, and tribes have used $3.75 Billion from the State and Local Fiscal Recovery Funds in order to refill local rental assistance programs. This is to avoid an abrupt reduction of utility and rent assistance.

The separate COVID-19 aid program, worth $350 billion, allows broad discretion in spending and is becoming a powerful social policy tool.

Wally Adeyemo (Deputy U.S. Treasury Secret) stated that the program of rental assistance, which was implemented in two installments in December 2020 as well as March 2021 has helped keep evictions rates low during this pandemic.

“As the emergency funds are running out, it is time for the state and local governments leverage this infrastructure and provide services such as right-to counsel programs and housing counselors to help families avoid financial scarring well after COVID-19 has ended.”