Rural States Refusing Federal Housing Aid

Rural states like Nebraska, Montana, and West Virginia have refused federal funding to aid vulnerable renters during the economic shocks of the pandemic, and that money is now headed to other parts of the country.

2 minute read

April 25, 2022, 5:00 AM PDT

By James Brasuell @CasualBrasuell


Rural Highway

marekuliasz / Shutterstock

“Governor Pete Ricketts, a Republican, has declined to spend $120 million in federal housing assistance funds, claiming the aid risks turning Nebraska into ‘a welfare state,’” according to an article in the Boston Globe by Pranavar Baskar [potential paywall].

Nebraska isn’t the only state to pass on federal funding in recent months—“hundreds of millions of that money is going unused,” according to Baskar, despite the $46 billion Emergency Rental Assistance Program's track record of success. The funding has helped stave off an estimated 1.3 million evictions, according to housing experts cited in the article. A similar redistribution of the program's funding was threatened in January 2022, as states like Georgia, Arizona, Wisconsin, and Louisiana were slow to spend their share, according to a New York Times article published at the time.

Despite the obvious need for housing assistance in rural parts of the country, the Biden administration is now responding to three states' refusal to spend their share of the program's funding by redirecting the funding to more populous parts of the country.

“In March, the Treasury reclaimed $377 million in rental aid, including $11 million from Nebraska, $45.3 million from Montana, and more than $39 million from West Virginia. North Dakota returned nearly half its funds. The federal government then sent that money to New York, California, and New Jersey — states that clamored for more help to weather a severe housing crises,” according to the article.

This isn’t the first time in history that Republican leadership at the state level has refused the largesse of economic stimulus spending. Then-Florida Governor Rick Scott (R) infamously rejected federal funding for high-speed rail during the Obama administration in 2011. That money was eventually redirected to California.

Friday, April 15, 2022 in The Boston Globe

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 2, 2025 - Diana Ionescu

Map of Haussmann's redesign of Paris in the 1850s through 1870s under Napoleon III.

In Urban Planning, AI Prompting Could be the New Design Thinking

Creativity has long been key to great urban design. What if we see AI as our new creative partner?

June 30, 2025 - Tom Sanchez

Sign in front of building for seior services center in St. Petersburg, Fl.

Florida Seniors Face Rising Homelessness Risk

High housing costs are pushing more seniors, many of them on a fixed income, into homelessness.

30 minutes ago - WESH

Boston Red Line train with skyline in background.

Massachusetts Budget Helps Close MBTA Budget Gap

The budget signed by Gov. Maura Healey includes $470 million in MBTA funding for the next fiscal year.

1 hour ago - Smart Cities Dive

View down center of street in Milwaukee, Wisconsin

Milwaukee Launches Vision Zero Plan

Seven years after the city signed its Complete Streets Policy, the city is doubling down on its efforts to eliminate traffic deaths.

2 hours ago - Urban Milwaukee

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.

Associate/Senior Planner

Gallatin County Department of Planning & Community Development

Senior Planner

Heyer Gruel & Associates PA