The COVID-19 virus sparked a global pandemic in 2020, which soon led to a downslide in our economy. While many people battled for their health, many others felt the effects of the pandemic in other ways. Job loss was an unfortunate outcome for many people during the harshest months of the viral outbreak. This left many people scrambling to find a way to keep their roof over their heads and pay their bills. The government quickly responded to people’s needs by passing specific bills that would help those in need during the health crisis, one of which was the American Rescue Plan.
The Increase in Job Loss
As the pandemic took a foothold globally, the virus largely affected the future of the United States. One of the biggest impacts of the virus was job loss. Many people were faced with layoffs by their companies due to the virus. Some lost their job due to contracting the virus and became unable to work. Others who were negatively affected were small business owners. Many small businesses were forced to shut down during the pandemic as they could not maintain a positive flow of customers during the global shutdown.
COVID put more people in dire need of financial support than our country had ever seen in recent years. Many people struggled to make ends meet; especially their mortgage and rent payments. By the end of December 2020, the US Census Bureau estimated approximately 20% of renters had fallen behind in their rent and were on the verge of being evicted from their homes.
By April 2020, the unemployment rate had soared to 14.8%, leaving nearly 9.5 million workers without jobs. This was a figure the country hadn’t seen since 1948, the year tracking this data began, according to Congressional Research Services. This steep and sudden rise in unemployment ended a decade-long expansion for our nation and required swift governmental intercession to help keep families and the economy afloat.
Many Renters Faced an Array of Challenges
- Finding employment
- Paying rent
- Paying utilities
- Affording Food
Although many feared losing their homes, the most vulnerable were the renters. For many homeowners, lenders could work with customers regarding their loans. Lenders offered to aid in the way of mortgage deferments for periods so customers wouldn’t default on their loans. For renters, there was no safety net. They were stuck unable to pay utilities much less rent. President Biden knew families were feeling the stress of the economic downturn and therefore created a bill to offer protection for the most vulnerable population, the renters. Protecting renters from evictions was crucial during a time when so many people were faced with both financial and housing crises.
The Impact on Mental Health
It’s to be expected that with a major health crisis, there’s going to be an increase in mental health issues as well. Millions of people suffered from the virus itself, but the damage the virus caused extended well beyond a physical ailment. People everywhere experienced loss – the loss of loved ones, job loss, their homes, school closures, and overall, financial difficulties. Soon, the issue of mental health became a concern.
The prolonged health, social, economic, and psychological stressors were taking their toll overall, on mental health. Reported numbers of depression, anxiety, substance abuse, hopelessness, and suicide were climbing during the pandemic. One of the biggest mental health stressors for many people was being in the unexpected position of suddenly not being able to afford rent or utilities. For others, if it hadn’t happened yet, the idea loomed over them due to the unexpected economic decline.
The American Rescue Plan
To help individuals and families during the COVID-19 health crisis, President Biden signed the American Rescue Plan bill into law on March 11, 2021. The bill was designed to give financial assistance to those who were economically affected by the pandemic, including, individuals, families, small businesses, nonprofit organizations, first responders, essential workers, as well as the travel and hospitality industry, among others.
A minimum of $152 million was allocated to each state to aid its residents under the Emergency Rental Assistance program. Government funding was made available to qualified households who were unable to pay their rent or utility bills, which allowed renters time to search for other employment without the stresses of not having their basic needs met. They could make their rent payment and supply it with light, water, heat, and air, as the world battled the virus.
Eviction Protection
The Emergency Rental Assistance program’s core element was to protect tenants from the risk of eviction by providing funding to renters for their monthly rental payments. Beyond rental assistance, the program also offered aid to qualified candidates for relocation services, as well as legal services for those facing eviction. During the brunt of the pandemic, housing stability was a big issue, and the U.S. Treasury Department wanted to mitigate people’s housing concerns in as many ways as possible.
A Fresh Start
The ERA program began in March of 2021 and helped bail many people out of a housing crisis during the toughest months of the pandemic. For 18 months, qualified recipients were able to get the financial help they needed for housing and utilities to give them a chance to get back on their feet and get a fresh start. Whether renters were able to stay in their homes due to the aid, or received aid to find a new rental, they weren’t left to fend for themselves. The ERA gave many people peace of mind and housing stability; otherwise, they may have been evicted or even living without power.
The COVID-19 virus sparked a global pandemic in 2020, which soon led to a downslide in our economy. While many people battled for their health, many others felt the effects of the pandemic in other ways. Job loss was an unfortunate outcome for many people during the harshest months of the viral outbreak. This left many people scrambling to find a way to keep their roof over their heads and pay their bills. The government quickly responded to people’s needs by passing specific bills that would help those in need during the health crisis, one of which was the American Rescue Plan.
The Increase in Job Loss
As the pandemic took a foothold globally, the virus largely affected the future of the United States. One of the biggest impacts of the virus was job loss. Many people were faced with layoffs by their companies due to the virus. Some lost their job due to contracting the virus and became unable to work. Others who were negatively affected were small business owners. Many small businesses were forced to shut down during the pandemic as they could not maintain a positive flow of customers during the global shutdown.
COVID put more people in dire need of financial support than our country had ever seen in recent years. Many people struggled to make ends meet; especially their mortgage and rent payments. By the end of December 2020, the US Census Bureau estimated approximately 20% of renters had fallen behind in their rent and were on the verge of being evicted from their homes.
By April 2020, the unemployment rate had soared to 14.8%, leaving nearly 9.5 million workers without jobs. This was a figure the country hadn’t seen since 1948, the year tracking this data began, according to Congressional Research Services. This steep and sudden rise in unemployment ended a decade-long expansion for our nation and required swift governmental intercession to help keep families and the economy afloat.
Many Renters Faced an Array of Challenges
- Finding employment
- Paying rent
- Paying utilities
- Affording Food
Although many feared losing their homes, the most vulnerable were the renters. For many homeowners, lenders could work with customers regarding their loans. Lenders offered to aid in the way of mortgage deferments for periods so customers wouldn’t default on their loans. For renters, there was no safety net. They were stuck unable to pay utilities much less rent. President Biden knew families were feeling the stress of the economic downturn and therefore created a bill to offer protection for the most vulnerable population, the renters. Protecting renters from evictions was crucial during a time when so many people were faced with both financial and housing crises.
The Impact on Mental Health
It’s to be expected that with a major health crisis, there’s going to be an increase in mental health issues as well. Millions of people suffered from the virus itself, but the damage the virus caused extended well beyond a physical ailment. People everywhere experienced loss – the loss of loved ones, job loss, their homes, school closures, and overall, financial difficulties. Soon, the issue of mental health became a concern.
The prolonged health, social, economic, and psychological stressors were taking their toll overall, on mental health. Reported numbers of depression, anxiety, substance abuse, hopelessness, and suicide were climbing during the pandemic. One of the biggest mental health stressors for many people was being in the unexpected position of suddenly not being able to afford rent or utilities. For others, if it hadn’t happened yet, the idea loomed over them due to the unexpected economic decline.
The American Rescue Plan
To help individuals and families during the COVID-19 health crisis, President Biden signed the American Rescue Plan bill into law on March 11, 2021. The bill was designed to give financial assistance to those who were economically affected by the pandemic, including, individuals, families, small businesses, nonprofit organizations, first responders, essential workers, as well as the travel and hospitality industry, among others.
A minimum of $152 million was allocated to each state to aid its residents under the Emergency Rental Assistance program. Government funding was made available to qualified households who were unable to pay their rent or utility bills, which allowed renters time to search for other employment without the stresses of not having their basic needs met. They could make their rent payment and supply it with light, water, heat, and air, as the world battled the virus.
Eviction Protection
The Emergency Rental Assistance program’s core element was to protect tenants from the risk of eviction by providing funding to renters for their monthly rental payments. Beyond rental assistance, the program also offered aid to qualified candidates for relocation services, as well as legal services for those facing eviction. During the brunt of the pandemic, housing stability was a big issue, and the U.S. Treasury Department wanted to mitigate people’s housing concerns in as many ways as possible.
A Fresh Start
The ERA program began in March of 2021 and helped bail many people out of a housing crisis during the toughest months of the pandemic. For 18 months, qualified recipients were able to get the financial help they needed for housing and utilities to give them a chance to get back on their feet and get a fresh start. Whether renters were able to stay in their homes due to the aid, or received aid to find a new rental, they weren’t left to fend for themselves. The ERA gave many people peace of mind and housing stability; otherwise, they may have been evicted or even living without power.
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