USDA Runs Out of Rental Assistance Funds

Clarification, November 25, 2013 – The shortfall in USDA Section 521 Rental Assistance funding does not impact ongoing RA contracts. It affects only contracts that need to be renewed at this time.

USDA has used all RA funds released by the Office of Management and Budget so far under the continuing resolution. It has asked OMB to “apportion” additional RA funding. If OMB does so, USDA will be able to renew some RA contracts. Even so, it will use up all the RA renewal funding appropriated under the CR before the end of the CR. This is because the CR provides the same amount of RA funds as were appropriated for the October 1 – January 15 period in FY13, even though this year (FY14) an additional month of funds is needed to cover renewal of contracts that expired in September 2013 but were not renewed until October.

November 20, 2013 – USDA has informed its staff that it has used up all the Section 521 Rental Assistance funding appropriated under the continuing resolution that funds the government through January 15, 2014. Rural Development has requested approval from USDA and OMB to request additional funding from Congress. HAC will post updates as they become available.