**The Hidden Effects of Rental Aid During COVID-19**
The anxiety of potentially losing one’s home can manifest in the body like a persistent, subtle alarm. Throughout the COVID-19 pandemic, countless Americans endured this anxiety as financial obligations accumulated and eviction approached. However, a federal initiative aimed at providing housing stability achieved more than just bill payments; it unintentionally served as a significant mental health intervention.
In 2021, Congress established the Emergency Rental Assistance program, which allocated $46.55 billion to curtail evictions among low-income renters grappling with pandemic-related difficulties. Researchers from the University of California, Riverside, have reported that receiving this support resulted in significant reductions in anxiety and depression levels. It also boosted the likelihood of individuals seeking professional help when experiencing symptoms.
The study, released in Health Affairs in January 2026, was spearheaded by Wei Kang, an assistant professor at the School of Public Policy. Her research team utilized data from the U.S. Census Bureau’s Household Pulse Survey collected between 2021 and 2023. The research design involved comparing two groups: individuals who reported receiving rental assistance and those who had applied but were still awaiting aid. The individuals in limbo served as the control group.
**Support Beyond the Rent Payment**
The data reveals a compelling narrative about the influence of stability. Just below 46 percent of aid recipients indicated experiencing symptoms of anxiety in the two weeks prior to completing the survey. This figure was 9.1 percentage points lower than the group still waiting for assistance. Rates of depression decreased by 8.1 points among those whose rent was covered.
It wasn’t solely about improved feelings; it was also about accessing care.
Among those with anxiety or depression who were still pending aid, roughly 16 percent had consulted a therapist or counselor in the preceding four weeks. Once assistance was received, this figure increased. The rates of seeking care grew by 6.5 percentage points for individuals with anxiety symptoms and by 7.9 points for those with depression. The authors characterized these treatment advancements as less pronounced than the symptom alterations, yet still statistically significant. The additional funds allowed individuals to finally afford co-pays or arrange transportation to clinics.
The causal question is intriguing in this context, in a somewhat indirect manner. Kang applied a method known as causal mediation analysis to distinguish direct aids from those that worked through a chain of effects. In layman’s terms, instead of viewing the program as a single enigmatic nudge, she dissected the pathways.
Two pathways were detected. First, ERA alleviated mental distress by addressing housing insecurity itself. Settling overdue rent and evading eviction threats relieved a prominent stressor, which was associated with fewer symptoms. This effect was particularly pronounced for anxiety. Second, with rent managed, households could shift limited resources towards health-related necessities. The researchers cited instances such as medications, co-pays for doctor visits, and transportation for mental health service access.
**A Fresh Perspective on Economic Support**
For individuals already teetering on the brink, this budgetary shift was significant. The program did not merely provide shelter; it transformed what became possible when symptoms arose.
Bruce Link, a distinguished professor of public policy and sociology at UC Riverside and a co-author of the study, pointed out that researchers frequently prepare for potential failings of public expenditure.
“What’s really interesting is that people in our field often worry about the unintended consequences of government programs, and that they’ll be bad, such as fraud or waste.” – Bruce Link, Distinguished Professor of Public Policy and Sociology
This research underscored a markedly different outcome. The researchers contend that economic relief initiatives like rental assistance should be recognized not just as fiscal measures but as public health tools. They propose that future programs could enhance these dual benefits by expediting applications and hastening delivery, enabling recipients to stabilize their housing and access care more promptly.
ERA was formulated in response to a housing crisis. By alleviating eviction pressure and freeing limited funds, it may have also made mental health care accessible at the critical moment when many individuals needed it the most.
[Health Affairs: 10.1377/hlthaff.2025.00120]