House Adjourns Without Extending Covid-19 Eviction Moratorium

House lawmakers adjourned late Friday for their August recess without action on the measure after Democratic leadership tried and failed to secure votes. The CDC moratorium ends at a time of heightened vulnerability for tenants as the Delta variant of the virus continues to spread in many parts of the country, the Biden administration warned.

State and local governments have struggled to distribute $47 billion in federal money aimed at helping tenants who can’t pay rent because of the pandemic-triggered downturn, leaving many people at risk of being forced out of their homes when the moratorium expires.

Just $3 billion of the aid authorized by Congress in December and March had been delivered to landlords and tenants as of June 30, the Treasury Department said in a report last week. About 8.2 million adults were behind on their rent or mortgage as of July 5 and have low confidence they can pay on time next month, a Census Bureau survey showed.

In a private call with House Democrats on Friday morning, House Speaker

Nancy Pelosi

(D., Calif.) suggested that she might keep the House in session to vote on an extension of an eviction moratorium, according to a person on the call. The House Democratic caucus, however, was divided over voting for an extension, with some members reluctant to take a vote on a bill that could alienate small landlords and still not pass the Senate.

At a news conference, Mrs. Pelosi blamed the states, saying they had distributed only a fraction of the money approved by Congress for rental assistance.

“This money has largely gone out to the states and local governments to implement and to give to the renters so they can pay the rent, which helps the landlords of course, too,” Mrs. Pelosi said. “Why should the renters be punished for the fact the system did not put money into their pockets to pay the rent to the landlord?”

The CDC, she said, had ample authority to extend the moratorium without congressional action.

“It isn’t about any more money,” Mrs. Pelosi told reporters “The money is there, resting in localities and the governors’ offices across the country. We would like the CDC to expand the moratorium. That’s where it can be done.”

A senior White House official on Thursday said any additional administrative extension of the moratorium wouldn’t last long before being struck down by the Supreme Court. It could also provoke a more substantive decision that would take away authorities from the CDC, the official said.

Republicans have criticized the moratorium extensions and have called for the Biden administration to help expedite the distribution of the rental aid approved by Congress.

The moratorium, which originated from an executive order signed by then-President Donald Trump last August, shields tenants who have missed monthly rent payments from being forced out of their homes if they declare financial hardship. They still owe the back rent.

The moratorium was originally set to expire Dec. 31, 2020, but Congress extended it until late January, and the CDC has extended the order three times.

The administration said its hands were tied because of litigation pursued by some landlords and real-estate companies seeking to lift the national moratorium. While the moratorium was thrown out in May by a federal judge, the judge stayed the effect of the ruling while litigation continued. In June, the Supreme Court rejected an emergency request to clear the way for evictions after the Biden administration said it would extend the moratorium for one final month.

Justice Brett Kavanaugh voted with the 5-4 majority to keep the moratorium in place but issued a one-paragraph concurrence saying he believed the moratorium was unlawful and was willing to leave it in place for July. “In my view, clear and specific congressional authorization (via new legislation) would be necessary for the CDC to extend the moratorium past July 31,” he wrote.

Biden administration officials have said for weeks that they are taking steps to speed up the distribution of aid. Measures include hosting two “eviction prevention summits” as well as encouraging local jurisdictions to adopt programs that offer tenants legal assistance and aim to avoid evictions. The Consumer Financial Protection Bureau launched this week a new online tool to help tenants and landlords find aid.

In a statement Friday, President Biden urged states and localities to “take all possible steps to immediately disburse these funds” and if necessary impose their own eviction moratoriums. “State and local governments should also be aware that there is no legal barrier to moratorium at the state and local level,” he said.

Asked earlier Friday why the White House didn’t call on Congress to act sooner, deputy press secretary Karine Jean-Pierre said the administration has been in discussions with lawmakers “for some time on legislation to address the issue.”

Write to Andrew Ackerman at andrew.ackerman@wsj.com and Siobhan Hughes at siobhan.hughes@wsj.com