BOSTON (AP) — States and localities have only distributed 11% of the tens of billions of dollars in federal rental assistance, the Treasury Department said Wednesday, the latest sign the program is struggling to reach the millions of tenants at risk of eviction.

The latest data shows that the pace of distribution increased in July over June and that nearly a million households have been helped.

But with the Supreme Court considering a challenge to the federal eviction moratorium, the concern is that a wave of evictions will happen before much of the assistance has been distributed. Some 3.5 mi...