Montana will close the waiting list for state rental assistance this month, officials say in response to the federal government cutting rental assistance to Montana.

Nearly 3,000 Montana residents are on the waiting list for Section 8 housing certificates, which cover part of the rent for low-income residents.

The waitlist moves slowly, and it takes most people years to work their way to the top of the queue. But starting August 15, Montana’s list will be completely frozen – no new applicants will be accepted and those on the waitlist will not be able to move forward.

Suzanne Kingston says she gets a lot of calls from concerned clients. She is an eligibility coordinator for Section 8 programs at Action Inc in Butte, a nonprofit that administers vouchers in southwest Montana.

“People are calling and are confused about the news, I think because they are panicking,” Kingston said.

They panic because they don’t know if and when they will get help paying for their accommodation.

The Section 8 program benefits Montana residents in need. Only seniors, people with disabilities, and people with annual incomes of less than $30,000 are eligible for assistance. Without vouchers, many of them are at risk of homelessness.

In a letter to the U.S. Department of Housing and Urban Development, Governor Greg Gianforte said the measure was a necessary response to the department’s half-million-dollar cut in monthly state funding for the program.

HUD says the reduced funding is necessary to make up for budget shortfalls in other states. Gianforte says Montana’s waitlist will remain closed until federal funding is increased. Montana residents can apply for a spot on the waitlist until August 15.