Are child care providers required to provide complete relief from copayments and tuition for families in their care while they are receiving an ARP Act stabilization subgrant? As the incentives in question would be to promote vaccination among child care providers and support health and safety in child care programs, this would be an allowable use of CCDF quality funds. [1]This amount will depend on the state in which the provider lives. Using Indiana's federal COVID-19 relief funding, the Office of Early Childhood and Out-of-School Learning (OECOSL) launched the Build, Learn, Grow Stabilization grant program to provide critical funding to early childhood and school-age providers, support their program's operating expenses and help them rebuild their programs for the future. By using our website you consent to the use of cookies, two-thirds of childcare centers are serving less than 75 children and are struggling to break even, American Rescue Plan Act (ARPA) Child Care Stabilization Grant requirements by state. Q: How do I create an emergency fund with this grant? Q: If licensed family childcare is allowed 12 kids max. Information and resources to help CCDF Lead Agencies and providers understand, administer, and access child care stabilization grants. Is our grant amount $15k or $24-$52k? The required W-9 information is included in the application, so providers do not need to download or upload a separate form. Q: Are the Stabilization grant requirements the same from state to state as to what I can use the money for? Yes, lead agencies may determine which provider types to include in their stabilization subgrant programs, as long as those providers are eligible and qualified as defined in the ActVisit disclaimer page. If necessary, you may need to include an explanation of how the items or staff time in question fall within the allowable categories. The February 10th webinar was sponsored by KidKare. There is also not a federal limit on the total dollar amount of stabilization subgrants that a qualified provider can receive. Lead agencies have flexibility in determining how to best meet the goal of prioritizing certain children while complying with the eligibility requirements. To learn more about how to fill out W-9 information, check out this video to learn how to complete Form W 9. dollars for the Child Care Stabilization Grants These grants are to provide financial relief to family child care providers and child care centers to cover business costs associated with COVID-19 and to help stabilize their operations This represents a substantial financial benefit to all child care programs! Child care programs may not furlough any employees while receiving the C3 grant funds. The plan includes $24 billion in child care stabilization grant funding for states, territories, and tribes to distribute within their state using the Child Care and Development Grant (CCDBG) formula. Regarding federal tax rules, please contact the Internal Revenue Service for guidance. Lead Agencies may temporarily lower a familys co-payment while the family is experiencing temporary or non-temporary job loss. Specifically, providers serving children who receive CCDF services would need to meet requirements for health and safety standards, training, inspections, and background checks. For example, if an application was submitted such that the first month of the grant is September, they would need to recertify at the beginning of October. Lead agencies should contact their OCC Regional Offices for support and technical assistance related to spending the various funding streams so they can reach child care providers and families quickly. Lead Agencies also have flexibility in treatment of regular UC benefits. You will always be better off financially after taking a grant, even if it increases your taxes. Providers may also require additional screening processes, such as temperature checks and wearing masks, when feasible, during interactions. In addition, states may use CCDF to subsidize child care services for school-age children (up to age 13) that provide care and supervision in situations where schools are not otherwise providing in-person instruction and an outside source pays for instructional services that are delivered in-person in the child care setting. If a program closes temporarily during the 12-month grant period (for vacation, illness/injury, or COVID-19-related issue) will the program still be eligible for the grant during that month? Yes, additional child care staff or staff time to assist with cleaning and health screening is an allowable use under CCDBG as an activity to improve the quality of child care services and child safety (45 CFR 95.53(a)(10)). Child care stabilization grants were appropriated to states in the American Rescue Plan Act (Public Law 117-2) to help stabilize the child care sector via subgrants to child care providers due to the COVID-19 pandemic. The two-year grant period is scheduled to end in September 2023, meaning eligible employees may receive . No, lead agencies should not calculate current operating expenses after deducting income, including child care subsidy payments. The purpose of the child care stabilization grants is to support child care centers and home-based child care providers to stay open or reopen. Lead Agencies are permitted to use funds for the establishment and maintenance of computerized child care information systems, including data systems. Alternatively, CCDF Lead Agencies also have the option of interpreting the prohibition as applying only during times when schools are open for in-person classes, since there may not be a regular school day during times when schools are closed for in-person classes. A policy that moves families currently receiving subsidies to a waitlist is in direct opposition to the graduated phase-out policy. Per Federal requirements outlined in The American Rescue Plan (ARP) Act of 2021 (Public Law 117-2), certify that they will meet the following requirements throughout the period of their grants: The provider will, when open and providing services, implement health and safety policies in line with guidance and orders from corresponding state, territorial, tribal, and local authorities and, to the greatest extent possible, implement policies in line with guidance from the Centers for Disease Control and Prevention (CDC). And while many child care providers have opened back up, its been anything but easy. The webinar highlighted tools to help apply for the . How do I treat this on my taxes? Also, tribal lead agencies may be accountable for reporting to OCC on data elements that would have been included in the application. American Rescue Plan Act (ARPA) Child Care Stabilization Grant Opportunity. However, because this analysis depends heavily on the individuals particular circumstances, we encourage child care workers receiving federal housing assistance to contact their Public Housing Agency (PHA) or Owner for more information. Q: If I was audited, would they just audit my grant or my entire business? Ready to apply? This will be necessary to access the various supports offered through the Department. The Stabilization Payment Program Round 2 is a nine-month payment program that runs . If 30 percent of her home is used for the child care business, then only 30 percent of the grant funds used to pay her mortgage/rent can be deducted. The supplemental appropriations under the CARES Act and the CRRSA Act can be used to provide child care assistance to health care sector employees, emergency responders, sanitation workers. Grant funds are not a loan that need to be paid back. So, this is not a requirement in Colorado. No, tribal COVID-19 CCDF supplemental funds, like regular CCDF program funds, cannot be used to provide direct services for families who do not meet the tribes definition of Indian child or do not live within the tribes service area. However, families who receive TANF cash assistance may be categorically eligible for SNAP. Providers who served children receiving subsidies from the following programs in March 2021 will be eligible for a $600 per-child stipend: CalWORKs Stages One, Two (C2AP) and Three (C3AP) Alternative Payment Programs (CAPP) including Migrant Alternative Payment Programs (CMAP) General Child Care and Development Programs (CCTR) Further, providers caring for infants must be aware of, and responsive to, parents who choose to breastfeed while their child is in care (e.g., by making arrangements such as providing space specifically for this purpose). Use quality dollars to provide immediate assistance to impacted providers, even if they. This only applies to Tribal CCDF Plans and not to tribes with approved Public Law 102-477 Plans. Checks payable from the business bank account to the sole proprietor/individual, Electronic statements that document funds transferred from the business bank account to the personal bank account, Documentation evidencing expenditures made with grant funds, Responses to questions about general provider information, provider accounting systems/processes, and the internal controls in place, the amount (in dollars) of the expenditure, the category of allowable uses under which the expenditure fall, the type of supporting documentation for the expenditure. 32% of employers have seen some of their employees leave the workforce due to the effects of COVID-19. The definition of what counts as income for the EITC is determined at the federal level and includes all income reported to the IRS as part of a tax filers Adjusted Gross Income (AGI). Program highlights follow below. Virginia's Child Care Stabilization Grant Program is designed to: Stabilize child care programs now; Support providers to make strategic investments in their programs; Target higher rates of support to providers located in or serving communities hit hardest by the pandemic; and Encourage participation in the Child Care Subsidy Program. Regarding federal tax rules, please contact your tax preparer or the Internal Revenue Service for guidance. How can I best prepare for an EEC fiscal monitoring review? Lead agencies have the flexibility to determine the documentation a child care provider must submit to confirm their current operating expenses and are encouraged to accept a variety of types of documentation and limit burden on applicants. Yes, Lead Agencies have the option to pay CCDF subsidies for school-age children for time in child care when the children are completing remote, virtual, or online schoolwork. The following examples are meant to illustrate the different ways in which a family child care provider might utilize the grant and the tax implications of each scenario. This builds on critical down payments on relief . Providers are encouraged to consult with an accountant or tax expert to fully understand the tax implications of this funding. The request is limited to an initial period of no more than two years from the date of approval, and at most, an additional one-year renewal from the date of approval of the extension. With limited exceptions, the funding of home visiting programs is not an allowable use of the ARP Child Care Stabilization Funds. 116-127) added a temporary FMAP increase of 6.2 percentage points beginning January 1, 2020, and continuing through the Coronavirus Disease 2019 (COVID-19) public health emergency period. Each approved program receives a Fixed Costs and Families Grant, based on . Child Care Workforce Appreciation Bonus - Now Available Lead Agencies have the option to waive the income eligibility requirements for children who receive or need to receive protective services, if determined to be necessary, on a case-by-case basis. The Child Care Workforce Stabilization grants supply funding to help child care providers recruit and retain qualified employees as the industry recovers from the pandemic. Carefully tracking payments is an important and helpful way to help minimize compliance risks. Per CCDF regulations, assets can be self-certified by a member of the household. Therefore, even if a Lead Agency opts to use CCDF to fund a child care providers caregiving and supervision of a child who is participating in remote learning, the Lead Agency cannot use CCDF to fund any instruction or services associated with academic credit or a schools program. The ARP Act does not impose requirements on whether to include or exclude ARP Act child care stabilization funds. The application must justify that the construction/major renovation activity is for the purpose of preventing, preparing for, and responding to, COVID 19. In cases where a lead agency includes Head Start programs in their ARP Act stabilization subgrants, lead agencies should ensure that CCDF funds do not duplicate Head Start funds and prioritize child care programs that are in need of financial relief and have received comparatively fewer resources during the COVID-19 public health emergency. A Plan amendment is required for any substantial program change (e.g., change in eligibility, rates, copays, etc.) Family child care providers must report any portion of the stabilization grant that they use to pay themselves as taxable income on their federal and state income tax return (unless their state chooses to make the grant not taxable). FCC programs do not have to serve 10 children at the time of application. The ARP Act does not address if a child care provider can terminate an employee for cause during this period. The IRS has published information indicating that "receipt of a government grant by a business is generally not excluded from the business's gross income under the Federal Tax Code and therefore is taxable." 1099 forms were mailed to programs detailing the amount of C3 funding the program received in 2021. Furthermore, a child in a family that is receiving, or needs to receive, protective services is eligible for child care subsidies even if the parent is not working or in education or training. The review might include, but is not limited to, requests for: Programs will be notified by EEC if they have been chosen to participate in the fiscal monitoring process. Q: My son is a part-time assistance that I dont do payroll taxes for him. Using a reimbursement model, management and reporting is easy and takes the burden off your HR team. Yes. Any expenses incurred by the intermediaries that are not part of the subgrants will count against the administrative set-aside of either 10 percent for states and territories, or 20 percent for tribal lead agencies, and are subject to the same obligation and liquidation deadlines. Lead Agencies have the flexibility to define full-time and part-time rates. The ARP Act child care stabilization funds are specifically designed to promote the stability of the child care sector. General Grant Questions Q1. These grants, funded with federal stimulus funding through the American Rescue Plan Act, began in September 2021 and are available to eligible child care providers through . Sept. 1, 2021: The Office of Child Development and Early Learning (OCDEL) is making American Rescue Plan Act (ARPA) Stabilization Grants available to eligible child care providers. In almost every situation, a provider will benefit financially from these grants even after taxes. Additionally, the ARP Act gave states significant discretion in determining how the child care stabilization grants would be apportioned to child care providers, and self-employment income and exclusion determinations may vary by options selected by the state. Paying a share of the ARP Act stabilization funds to another entity, including a bookkeeping firm, to apply for stabilization funding and assist with documentation as part of the grant management, is not an allowable use of the ARP Act stabilization funds. Regular CCDF funds or COVID relief funds (CARES Act, CRRSA ActVisit disclaimer page, and ARP Act supplemental) have a limit of 15 percent of funds that can be used for administrative purposes. Tribes are limited to serving CCDF children within their service area. However, the ARP Act stabilization funds are meant to support the child care sector during and after the COVID-19 public health emergency. No other family income will be affected, meaning you wont pay higher taxes on any non-grant income. around the country, mostly small businesses, who were already operating on thin margins. The Tribal Lead Agency must request and receive approval from ACF prior to using CCDF funds for construction and major renovation. Funds will be available to child care providers in the form of: Incentives for providers may be considered an allowable expenditure in the CCDF program if the incentives are used as part of quality improvement or other activity that meets the purposes and goals of CCDF. Previous updates can be found on the ARPA Stabilization Grants page on the Pennsylvania Key website. It is also important for providers to know that not all business expenses are fully tax deductible. No. While the guidance in this response focuses on how ARP stabilization funds impact the eligibility of child care workers for federal benefit programs, the same guidance would apply to funding from regular CCDF funds and supplemental funds provided under the CARES Act, CRRSA Act, and ARP Act, when the funds are used as stabilization grants or similar provider grants/stipends. Q: If I use the grant money to pay myself and then use the money to repair my home or fix my basement, can I deduct this as a business expense? However, a child care provider that was not licensed, regulated, or registered and met state and local health and safety standards as of March 11, 2021, must meet CCDF requirements at the time of application in order to be eligible for a child care stabilization subgrant. Forthcoming guidance will comprehensively address use of the CCDBG Supplemental funds in the American Rescue Plan Act. Tribal lead agencies may use CCDF funds from more than one funding stream (i.e., Mandatory, Discretionary, Supplemental, or stabilization funds) to fund a construction or major renovation project, as indicted in their application for construction or major renovation (. The CCDF rules definition of temporary job loss at 45 CFR 98.21(a)(1)(ii) includes, among other circumstances: If a parent has a non-temporary loss of job, the Lead Agency has the flexibility to allow the child to remain eligible through the end of the redetermination period. This could include physically separating checks or depositing the funds in different bank accounts. Mass.gov is a registered service mark of the Commonwealth of Massachusetts. associated with the licensed capacity of 50. State tax rules vary by State. Qualified child care providers must certify that they will meet the three certifications for the duration of their ARP Act stabilization subgrant. Grant funding amounts and distribution schedule. If so, follow up with your state to make sure they are following their own rules. Ensuring parents have access to their children while they are attending child care is a longstanding CCDF requirement that supports program quality and transparency, as well as parent and family engagement. Stabilization subgrant funds cannot be used to incentivize license-exempt, non-CCDF-eligible providers to become CCDF-eligible and therefore eligible to receive a subgrant. Q: How do I find out where to apply for this grant? A: It will depend on your personal finances. Apply for a waiver to use CCDF funds to provide direct services to families who do not meet CCDF eligibility requirements (e.g., with income above 85% of State Median Income; see note above regarding additional flexibility regarding use of the CARES Act and CRRSA Act CCDF program funds) and/or providers who do not meet CCDF health and safety requirements. Tribal lead agencies that do not have a child care website must post it on a website associated with the tribe so child care providers know the application is legitimate and from a trusted source. States, territories, and tribes must use the majority of these funds to provide subgrants to child care providers. Applications must be posted on the lead agencys child care website. These incentives are considered quality expenditures. Care provided in emergency situations should be of the highest quality that is reasonably practicable given the particular circumstances. To the extent that child care workers continue to participate in TANF, SNAP, or Medicaid, child care workers would not lose WIC as a result of receiving child care stabilization funding. The supplemental appropriations under the CARES Act and the CRRSA Act can be used, among other purposes, to provide continued payments and assistance to child care providers in the case of decreased enrollment or closures related to coronavirus, and to assure they are able to remain open or reopen. This could include posting a PDF copy or screenshots of the applications. Therefore, the lead agency cannot require child care providers receiving stabilization funds to use the funds to cover the cost of reduced family payments. Lead agency agreements with intermediaries must meet CCDF requirements at 45 CFR 98.11Visit disclaimer page and are subject to the same obligation and liquidation periods for the stabilization funds. Intermediaries are subject to the same obligation and liquidation period for ARP Act stabilization funds regardless of whether those funds are for administering the subgrants or one of the administrative, supply building, or technical assistance activities. The Child Care and Development Block Grant (CCDBG) Act requires lead agencies to allow for provision of continued assistance for families whose income exceeds the initial eligibility threshold but is below the second tier. Lead agencies have wide discretion in how subgrant amounts are formulated, including how current operating expenses are calculated. ARP Stabilization Grants Congress awarded approximately $24 billion to the CCDF program with the goal of providing financial relief to child care providers to help defray unexpected business costs associated with the COVID-19 pandemic, and to help stabilize their operations so that they may continue to provide care. The Child Care Stabilization Grant is considered income and is taxable. If you do so, this will help support the work I do helping family child care providers be more successful as a business. To paint a picture, child care centers today are facing decreasing revenues due to lower enrollment, higher expenses to operate safely during the pandemic, and severe and ongoing staffing difficulties. The portion that she uses for businesses expenses can be deducted from her taxable income, but the other half cannot, and she will need to pay taxes on that amount. Contact the C3 Help Desk: 1-833-600-2074 eecgrantsupport@mtxb2b.com. If the payment is a physical check, retain a copy of the bank receipts of the deposit/cashing of the check. No, tribes that are not already part of a consortium cannot pool their ARP Act stabilization funds to administer a single subgrant program. Retention of Child Care Staff. OCC encourages tribal lead agencies to include center-based and family child care programs outside of their CCDF program, as well as programs that serve school-age children. View a submitted Stabilization 1.0 or 2.0 grant application by clicking the button below: View a Submitted Application Stabilization Help Line: 844-863-9319 Refer to the disbursement schedule linked within the grant dashboard in the LEAD portal. This program doesnt just impact parents and childcare providers either. A Plan amendment should not create any delay since the Lead Agency may proceed with implementing the program change, and subsequently submit the amendment within 60 days. The tutoring or academic support services occur within a child care setting as an integral component of the child care services (such as homework help or other learning components that have traditionally been a part of many afterschool or school-age child care programs). These essential functions include (i) continuing payments to child care providers serving children receiving subsidies; (ii) provisions for extending eligibility re-determination for families; (iii) communication with the licensing agency to ensure that licensed programs receiving CCDF funds are safe and operational; (iv) assisting new enrollees or preparing for an influx of families who may need assistance; (v) implementation of a waiting list if the Lead Agency does not have one, as appropriate; and (vi) tracking families receiving subsidies impacted by the disaster. . CRRSA funds (including those used for construction and major renovation) follow CCDF Discretionary funding requirements and must be obligated by September 30, 2022 and liquidated by September 30, 2023. CRANSTON, RI - The Rhode Island Department of Human Services (DHS) is pleased to announce a new grant program designed to support and stabilize Rhode Island's child care industry. CCDF lead agencies have the flexibility to decide whether to disregard many of the COVID-19 supplemental payments to individuals as income when determining eligibility for CCDF subsidies, unless treatment of those payments as income or not is specified in law. In addition, expenses for this purpose are reported on the ACF-696 of ACF-696T CCDF Financial Reports under the non-direct services for systems expenditures, which are not subject to the five percent cap on administrative expenditures (45 CFR 98.54(b)(1)). A lock icon ( Lead Agencies have fiduciary responsibility to protect the integrity of the CCDF program funds. OCFS Thank you for your website feedback! Q: Do we need to enter into KidKare if I am paying myself? As noted at section 45 CFR 98.21(a)(3) of the CCDF rule, Lead Agencies are prohibited from increasing the family co-payment amount within the minimum 12-month eligibility period (except for families eligible through graduated phase-out). CCDF Lead Agencies have the option to interpret this provision (prohibiting funding of services during the regular school day) as applying only to services when a child is physically at schooland not when a child is in a child care setting. Under federal rules, lead agencies must ensure that parents of children receiving Child Care and Development Fund (CCDF) assistance have unlimited access to their children while they are attending child care. English (US) Log in. A: If you pay yourself with the grant and then buy items used 100% for your business, you wont owe any taxes on the amount you use the grant for this purpose. I plan to discount the current family tuition evenly. Below are the steps you will need to take to obtain a listing of your paid amounts. American Rescue Plan (ARP) Stabilization Funds. 2023 BUILD Initiative. We encourage family child care providers to contact a tax advisor about what should and should not be reported as part of ones AGI. Child care providers may use subgrants to cover a range of expenses such as personnel costs; rent or mortgage payments; insurance; facility maintenance and improvements; personal protective equipment (PPE) and COVID-related supplies; training and professional development related to health and safety practices; goods and services needed to resume providing care; mental health supports for children and early educators; and reimbursement of costs associated with the current public health emergency. Any funds received after the date of permanent closure will need to be returned to EEC. You will have to withhold and pay payroll taxes on these amounts. Lead agencies do not have to require additional information at the time of the application as part of the certification process. Tribes Tribal Lead Agencies have additional flexibilities to meet the unique needs of the populations they serve. Tribal lead agencies must submit amendments to their current FY 2020-2022 CCDF Plan within 60 days of the effective date of implementation. A: You can apply some of the grant money to cover lost revenue, but you cant deduct lost revenue as a business expense. In a recent webinar hosted by the Office of Child Care Technical Assistance Network, national family child care business expert Tom Copeland provided an overview of the stabilization grants and how family child care homes can handle the tax implications. These are some of the many questions Ive received during my February 10th webinar How to Save Money on Your 2021 Taxes. Heres a link to the recording and power point for this webinar. CARES Act funds (including those used for construction and major renovation) must be liquidated by September 30, 2023. The EITC phases in with earnings and phases out with the greater of earnings or AGI. This is not a loan. Child Care Start-Up and Expansion Grant Awards a maximum of $5,000 for Child Care Homes, and a maximum of $10,000 for Child Care Centers. Please limit your input to 500 characters. Note: the Office of Child Care is issuing this FAQ to lead agencies due to the time sensitive nature and urgency with ensuring that Americans can access the COVID-19 vaccine. Tutoring or academic support services that are stand-alone services or delivered outside of child care settings/services are not an allowable use of CCDF. Therefore, the grants could be excluded for SNAP purposes because they may end up being excluded from income as a reimbursementVisit disclaimer page,non-recurring lump sum paymentVisit disclaimer page, or cost of producing self-employment income (once spentVisit disclaimer page). Resources highlighting the experiences of CCDF Lead Agencies that awarded grants to child care providers in response to the COVID-19 pandemic. Rent (including rent under a lease agreement) or payment on any mortgage obligation, utilities, facility maintenance or improvements, or insurance. If there are multiple Programs registered, Search Provider to quickly locate the Provider. However, OCC encourages tribal lead agencies to consider expanding their stabilization funds to include providers in the service area who have not previously been part of their CCDF programs, such as family child care providers. Tribal lead agencies may use CCDF funds from more than one funding stream (i.e., Mandatory, Discretionary, Supplemental, or stabilization funds) to fund a construction or major renovation project, as indicted in their application for construction or major renovation (https://www.acf.hhs.gov/occ/policy-guidance/tribal-construction-or-major-renovation). Please remove any contact information or personal data from your feedback. Costs claimed toward the grant must align with your business expenses reported in your federal taxes. OCC has no plans to mandate specific oversight or compliance measures on this policy. What is fiscal monitoring as it relates to this grant program? A: If your state audits how you spent the grant, it is not likely they will audit the rest of your business. Such an amendment, however, would not modify the Child Count. Grant reporting will be completed in the Professional Development (PD) Registry. Rather, lead agencies have the discretion of placing reasonable conditions or timelines with regard to reopening on child care providers who receive a subgrant. Funds are in place so every eligible program can receive one grant per facility/site. A: You report the grant as income. What happens after a program submits an application? The date of the application approval will determine the date of the first payment based on the payment schedule. Lead Agencies who receive ACF grants may not use grant funds for costs that are reimbursed or compensated by other federal programs. In addition, lead agencies can and are expected to use some of their ARP Act stabilization set-aside to help child care providers access and apply for assistance, free of charge to the provider. As this requirement applies to the date of application, a school-age program that is open only during the summer would be eligible for a subgrant if the program applied for the subgrant when it opened again to provide child care services, such as in the summer when the program reopens. The Expenditure Tracker can be found on the EEC website under the Resources section: Commonwealth Cares for Children / Child Care Stabilization Grants | Mass.gov. Child Care Stabilization Grants The American Rescue Plan Act of 2021 (ARP Act) (Pub. Lead agencies may reverse an application approval prior to the award of funds if something changes between the approval and award, including, but not limited to, a licensing violation or revocation, fraud, or permanent closure of a provider. OCC strongly encourages lead agencies to use a portion of their set-aside to cover the cost of staffing necessary to administer and process the subgrants in a timely, transparent, and effective manner. Q: Can we pay ourselves in 2022 with grant money from 2021? Q: If I pay myself, how much will I owe in taxes? It would be OCCs expectation that Lead Agencies would employ this flexibility only on a temporary basis for the period of the public health emergency related to COVID-19. IMPORTANT: Recertifications for C3 funding between the months of July 2021 and June 2022 need to be completed no later than Monday. OCC has not released specific guidance that addresses all possible scenarios related to categorizing regular educational services for school-aged children that would not be eligible for CCDF subsidies. After September 30, 2022, no additional CCSG awards will be made. A: State applications will often use the word personnel when describing what the grant can be used for. EEC will notify programs in advance if a review at the program location will occur and whether the review will be conducted on-site or remotely. Yes, CCDF lead agencies may reprogram regular CCDF, CARES, or CRRSA funds until the obligation deadlines, which is September 30, 2022, for CARES and CRRSA. Tom Copelands Blog: Taking Care of Business There are two components of North Carolina's Child Care Stabilization Grants. In addition, all tribal lead agencies were allocated $30,000 as a base amount of the ARP Act stabilization funds prior to allocating funds based on the number of children served. OCC is not imposing a specific timeframe for when a temporarily closed provider due to COVID-19 at the time of application must reopen. The Expenditure Tracker is a template to help track the purchases/payments made using grant award funding. Lead Agencies should consider whether there are other sources of fundingsuch as public education dollarsto pay for equipment being used by children and families in the home. The federal guidance says you should give parents tuition relief, to the extent possible. This is not a requirement. Going forward, child care providers should continue to consider CDC guidance and follow lead agency requirements related to COVID-19, and be prepared to update processes if and when states, territories, and tribes resume pre-COVID policies for parental access to children. The Office of Child Development and Early Learning (OCDEL) made American Rescue Plan Act (ARPA) Stabilization Grants available to eligible child care providers. The CCDBG Act references children who need to receive protective services, demonstrating that the intent of this language was to provide services to at-risk children, not to limit this definition to serve children in the child protective services system. When do programs need to recertify their application? They are: For the purposes of determining CCDF eligibility and co-payment amounts, a Lead Agency may treat the UC benefits from the CARES Act or the CRRSA Act differently from the way it treats regular UC benefits. ACF additionally recommends seeking funding outside of CCDF to increase testing capabilities for the broader community. In instances specific to COVID-19, for example, the protective services population, at Lead Agency option, may include children of health care and emergency workers, and other workers deemed essential by public officialsas a temporary, short-term measure. Therefore, you would need to file 1099-Gs to avoid penalties for failure to file (Internal Revenue Code Section 6721) or failure to furnish (6722). If so, how do I do this? ACF has prioritized continuity of care, as demonstrated by the graduated phase-out policy. State SNAP agencies will have to determine on a case-by-case basis what portion, if any, is excludable based on how the providers received the funds and how they are spent. To show payments from the business to the person, documentation may include: Records of self-payments of grant funds from the business should be consistent with personal records for tax purposes. Care provided in emergency situations should be of the highest quality that is reasonably practicable given the particular circumstances. The facility to be constructed must be used principally to provide direct child care services to children. Example 2: Provider uses full amount for business expenses This does not require a waiver, but could require a Plan amendment. Yes, tribal lead agencies may use ARP Act stabilization funds for an existing multiyear construction project. Yes. Q: What impact will receiving this grant have on my Social Security benefits? While we support Lead Agencies attempts to stabilize child care supply and funding during the public health emergency, under existing law and rules, it is not allowable for a Lead Agency to use regular CCDF funds to double-pay subsidies to two different providers for the same child for the same time of service. Lead agencies are encouraged to use ARP Act supplemental funds, as well as CRRSAVisit disclaimer page and CARES Act funds, to provide relief from copayments for CCDF-eligible families and cover the portion of the child care cost ordinarily covered by copays. This funding has been expended and programs that received a Child Care Restoration Grant in 2020 are required to input monthly reporting into the Director Portal. After an application is submitted, a confirmation email will be sent to the email address listed in the programs LEAD account profile. Broaden/loosen any State-, Territory-, or Tribal-specific eligibility requirements for CCDF subsidies up to the Federal maximum allowed. $3,500 income $3,500 expenses = $0 taxable income and $0 taxes owed. Including additional categories of vulnerable children in the definition of protective services is only relevant for the purposes of CCDF eligibility and does not mean that those children should necessarily be considered to be in official protective service situations for other programs or purposes. Lead agencies may use part of their set-aside and other COVID-19 funds (i.e., CARES, CRRSAVisit disclaimer page, and ARP Act supplemental funds) to help providers open or reopen. However, the monthly design of grant funding is to ensure that programs have the stable cash flow for ongoing operational costs that adjusts to changing conditions (i.e., staffing changes). As such, states and territories cannot use CARES Act or CRRSA Act funds for construction or major renovation. Can a sole proprietor of an FCC use the grant funds to pay expenses that are associated with the program but are also inclusive of normal household bills? IMPORTANT: Recertifications for C3 funding between the months of July 2021 and June 2022 need to be completed no later than Monday, August 1, 2022 in LEAD. Lead agencies are not required to submit a new separate report to OCC that details how they plan to spend their ARP Act stabilization funds. Reprograming funds for other allowable activities does not constitute a cut in funding for child care for eligible individuals and is not considered supplantation. All organizations receiving funding must report this as income to your program. Stabilization Grants ARP stabilization funds used for tribal construction or major renovation must be liquidated by September 30, 2023; there is no separate obligation deadline for funds used for construction or major renovation. You cant deduct your mortgage payment, but you can deduct your Time-Space% of mortgage loan interest and you can depreciate your home to account for mortgage principal. OCC has interpreted the stabilization subgrants to be restricted to providers within the tribal lead agencys service area. If the payment occurs via direct deposit, record the amount and date of the received payment, as well as the destination account for the funds received. The $39 billion will be provided through two funds: (1) $24 billion in child care stabilization funding for child care providers to reopen or stay open, provide safe and healthy learning . As we all know, parents need access to safe, quality child care to get back to work. Adhering to your states unique spending and reporting requirements for funds that are part of the grant through the Office of Child Care. Continued non-compliance puts you at risk of losing your CCSG award. Tribal lead agencies may choose to award all of the ARP Act stabilization subgrants to their tribally operated centers. Lead agencies may choose to contract with intermediaries, such as counties, child care resource and referral agencies, and staffed family child care networks, to manage the administration of the ARP Act stabilization subgrants. The grants cannot be used for new construction or major renovations. Then put aside some money in a place that is low risk (bank savings account, short-term bond fund or money market account). Welcome to the Child Care Stabilization Grant Application System! Provider As household income is low enough; she may only owe the 15 percent in social security and Medicare expenses and can keep $2,975 for any use. Programs that permanently close are expected to notify EEC prior to their date of closure. This means that funds used to create a licensing department would count toward quality activities or non-direct services rather than administrative purposes. These funds are made available to Arizona through the Child Care and Development Fund (CCDF) relief funding appropriated through The American Rescue Plan (ARP) Act of 2021 (Public Law 117-2). This only applies to Tribal CCDF Plans and not to tribes with approved Public Law 102-477 Plans. How do I get the childcare stabilization grant? The Families First Coronavirus Response Act (Families First; P.L. For example, CCDF funds could be used to give packages of gloves and masks to families with the understanding that these materials will be used when parents drop off and pick up children from child care. The program will aim to alleviate some of the economic and operational hardships caused by the COVID-19 pandemic and response. Child care providers also may not involuntarily furlough employees employed on the date of submission of the application. You can use it for free during a 30 day trial period. 1099 forms were mailed to programs detailing the amount of C3 funding the program received in 2021. Once a family begins receiving CCDF, their subsidy can only be terminated at redetermination through the graduated phase-out policy, if the reason for termination is income eligibility. The CARES Act and the CRRSA Act do not address use of funds for construction or renovation; accordingly, regular CCDF/CCDBG rules apply. Here are the government resources for the Child Care Stabilization Grant by state: The Child Care Stabilization Grant is part of the American Rescue Plan Act (ARP Act) (Pub. The CCDF final rule at 45 CFR 98.16(aa) requires the Statewide Disaster Plan (or Disaster Plan for a tribes service area) to incorporate guidelines for continuation of child care subsidies and child care services. The allowable uses of subgrant funds are the same for tribal child care providers as for state and territory providers, except that tribal lead agencies may use any of the stabilization funds for construction or major renovations. The funds are designed to stabilize the child care sector and to do so in a way that rebuilds a stronger child care system that supports the developmental and learning needs of children, meets parents' needs and supports a professional workforce that is fairly and appropriately compensated for the essential skilled work that they do. How do you determine your salary? No, child care providers receiving subgrants are not required to have or provide a DUNS number or UEI. Programs will be prompted (via email and in LEAD) to recertify the application on the first day of the month they are recertifying. Dental crown not covered by insurance? Like regular tribal CCDF funds, tribal ARP Act stabilization funds are set-aside to serve tribal children. Within the grant attestation, a provider attests to using the funds for only items in the allowable expenditure categories. Subgrant amounts must be based on a child care providers stated current operating expenses, including costs associated with providing or preparing to provide child care services during the pandemic, and, to the extent practicable, cover sufficient expenses to ensure continuous operations for the intended period of the subgrant. Yes, Lead Agencies may pay child care staff based on a childs enrollment rather than attendance. Child care programs may not decrease an hourly employees pay rate but are allowed to decrease the employees hours in a given week. Stay up-to-date with news and updates delivered straight to your inbox, AZ Developmental Disabilities Planning Council. There has never been this amount of federal funding dedicated to childcare providers, which makes this an incredible opportunity. Q: If I was closed because I had COVID and didnt have parents pay during that time, how do I record using some of the grant to cover the lost revenue? Can child care providers use the C3 grant funds to cover an individuals family subsidy co-payments or tuition? In order to be a qualified child care provider and eligible to receive a subgrant, a child care provider must either be open to provide child care services or temporarily closed due to public health, financial hardship, or other reasons relating to the COVID-19 public health emergency at the time of application. Are available COVID-19 testing capacities meeting the needs of the community or would increasing testing in child care draw limited testing capacity away from populations with greater risk and exposure (e.g., health care workers and nursing home residents and workers)? Thus, a policy that terminates the receipt of the subsidy at redetermination for a child who is otherwise eligible is inconsistent with the law and the rule. In total NYS has nearly $1.1 billion in funding under this program. Applications need only request the minimum information necessary to make the subgrants and meet the federal reporting requirements. Child care providers that are receiving stabilization subgrants from a tribal lead agency must be serving at least one Indian child but are not restricted from receiving stabilization subgrants from a tribal lead agency if they also serve non-Indian children or have received a stabilization subgrant from a state. If after viewing this video and reading these questions and answers, you still have questions, feel free to send me an email at tomcopeland@live.com. Programs that close temporarily during the 12-month grant period due to inactive status (including inactive status pending an investigation) will have their payment frozen as of the date that the program became inactive in LEAD. Where not addressed by OCC guidance, OCC will defer to Lead Agencies' reasonable interpretation of these decisions and encourages Lead Agencies to provide guidance to providers on implementation of this policy where they think it is useful. Supporting Family Child Care to Prepare for Child Care Stabilization Grants If a tribal lead agency was unable to submit all the information prior to the deadline, a partial application was accepted. Not all applications are guaranteed to be approved. Lead agencies should use the definition they use for obligations for regular CCDF funds when determining whether ARP Act stabilization funds are obligated. For providers that implement this policy, CDC recommends limiting direct contact between parents and staff. For example, a Head Start program licensed by the state as of March 11, 2021, would meet the definition of eligible provider at section 2202(a)(2)(B)Visit disclaimer page. 17. Depending on a lead agencys licensing and health and safety rules, Head Start and Early Head Start programs may meet the criteria to be considered eligible for ARP Act stabilization subgrants. The application period ended December 14, 2022. This grant award increase will only be available to providers who previously received the COVID-19 Child Care Stabilization Grant at the end of 2021. Distributing the funds to employees (most states require a portion of grant funds to be paid out to employees)? FMAP rates and state matching requirements are published on the GY 2020 state and territory CCDF allocation tables page. Child Care Stabilization Grant Tax Implications (michigan.gov) 19. This still leaves $2,100 for the provider to spend as she chooses (or save it). CCDF funds, including supplemental funds, cannot be used to cover tuition or copayments for families that are not eligible to receive CCDF child care subsidies. Welcome to the Child Care Strong grants, administered by MDHS's Division of Early Childhood Care Department. State, Territory, and Tribal Lead Agencies have broad flexibility to operate the CCDF program and have a number of options within federal statute and regulation to adapt policies in order to maintain continuity of services for families affected by COVID-19. These stabilization funds are time-limited resources that are intended to stabilize the child care sector and workforce. As a result, the children of these workers are vulnerable during this time. However, tribal lead agencies who do not currently operate under a consortium may coordinate a common framework such that each tribal lead agency establishes the same requirements and procedures for the stabilization grants. DCYF Child Care Stabilization Grant As a result of the Federal American Rescue Plan Act, funds are to be used to stabilize, support, and grow the diverse early learning workforce in a way that rebuilds a stronger child care system and expands access to affordable high-quality care. Lead Agencies have the option to waive the income eligibility requirements for children who receive (or need to receive) protective services, if determined to be necessary, on a case-by-case basis. Mental health supports for children and employees. If child care workers were to lose access to TANF as a result of the stabilization funding, this would be counter to the goals of that funding. Federal regulations do not define unlimited access. If a program closes temporarily during the 12-month grant period due to inactive status, will the program still be eligible for the grant during that month? The Child Care Stabilization Base Grant's requirement to use 70% of funds to increase compensation for staff regularly caring for children did not apply to One-Time Supplemental Stabilization Grants. This webinar for training and technical assistance providers was presented on June 24, 2021. Under federal guidance, this clearly language clearly applies to a family child care provider, even if she has no employees. Funds can be used for this purpose under "goods and services". These funds represent an unprecedented opportunity that will be difficult to realize without adequate staffing. The instructions for submitting applications for construction or major renovation (available on the OCC website) require the tribal lead agency to describe the percentage of floor space that will be used to provide direct services to children.
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