Treasury report shows thousands of homes protected from foreclosure by Rescue Plan - TAI News
Skip to content
Photo by Nicolas Chase on Unsplash

A report released on March 19 by the Treasury Department shows that over 500,000 families received financial assistance that helped them avoid home foreclosures through a program created by the American Rescue Plan.

The Rescue Plan was signed into law in 2021 by President Joe Biden in his first year in office and was a major component of the administration’s response to the economic fallout of the COVID-19 pandemic. The legislation created and funded the Homeowner Assistance Fund, which provided over $9.4 billion to states to assist homeowners with mortgage payments, homeowner’s insurance costs, and utility bills.

The fund became necessary after a moratorium on foreclosures and options for temporarily suspending mortgage payments put in place by another piece of federal legislation, the 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act, were set to expire in July 2021.

“The Biden-Harris Administration helped to prevent foreclosures and increased housing stability nationwide by keeping half a million families in their homes,” Deputy Treasury Secretary Wally Adeyemo said in a statement accompanying the release of the report.

The Treasury report tabulated data collected through December 2023 and determined that 77% of the original funds have been used by recipients and that 22 states and two U.S. territories used all of the funds made available to them.

In Michigan, 27,381 homeowners received more than $242 million in assistance from the federal government through the Michigan Homeowner Assistance Fund, launched by Gov. Gretchen Whitmer in February 2022 through the Michigan State Housing Development Authority.

The Rescue Plan faced unified opposition from Republicans in Congress and only passed with Democratic votes. Vice President Kamala Harris provided the tiebreaking vote in the Senate. All of the Democrats in Michigan’s congressional delegation supported passage.

“This historic legislation is about rebuilding the backbone of this country and giving people in this nation — working people and middle-class folks, the people who built the country — a fighting chance. That’s what the essence of it is,” Biden said at the March 2021 White House event at which he signed the bill.

In his State of the Union speech delivered on March 7, Biden further advocated for help for homeowners and called on Congress to pass legislation that would provide tax credits for first-time homeowners and give assistance with down payments to first-generation homebuyers. The legislation would also fund the renovation of over 2 million homes in a bid to increase the housing supply and lower housing costs for buyers and renters.

Related articles


Share this article:
Subscribe to our newsletter

The Michigan Independent is a project of American Independent Media, a 501(c)(4) organization whose mission is to use journalism to educate the public, giving them the information they need about local and federal issues.